yourauditoroffice-blog - Tumblr blog

yourauditoroffice-blog · 6 years ago

Text

LLP Registration better guide for a better tomorrow

Limited liability partnership or LLP Registration Guide guide includes a combination of both business and partnership. It is the easiest form of business to incorporate and manage. It replicates both the features at the same time. Probably, As the name suggests the LLP has some sort of liabilities like the partners are not carry their personal assets to deduct the debt of the company. Nowadays every entrepreneur is opting this hybrid entity for Incorporation due to its easy registration and simple compliance formalities. LLP is regulated by the limited liability partnership act of 2008. Subsequently, Here each and every partner has their own personal liabilities and each one is not responsible for the misconduct of the other. In India LLP has been introduced in April 2009. LLP is not only popular in India but also in the United Kingdom, Australia, etc. LLP mostly prefers micro and small business.

Features & Guide of LLP Registration

LLP has a separate legal entity. That is the partners and the LLP are contrary to each other.

The minimum limit to form an LLP is 2 members and there are no limits on the maximum count.

There is no minimum capital requirement.

As a Juristic legal person LLP can charge prosecution or charge by others. But the partners can’t charge on LLP regarding the due on it.

Basically, Partner is the agent of LLP but not of other partners

Right to decide mutual duties and responsibilities

Flexible operations

Unfluctuating Succession: The extent of LLP is not affected by death, retirement or liquidation. Thus, The Act 2008 is only responsible for the wind up of an LLP.

Liability: The partner of the LLP is having limited liabilities and no one can blame each other. That is the partners in the LLP are not responsible for the other one’s misconduct.

Advantages of Limited liability partnership

Easy to incorporate: LLP formation is an easy task compared to another formation process. Moreover, It is not time-consuming like any other process of a company.

Liability: The partner of the LLP is having limited liabilities and no one can blame each other. That is the partners in the LLP are not responsible for the other one’s misconduct.

Company Management: The company directors are responsible for each activity and they are doing the entire managerial task step by step. Hence, The partners have very fewer liabilities as compared to owners or directors of the board.

The easy portability of ownership:

Joining and retirement within an LLP are a simple task. It is really easy to enter as a partner and leave the premise or easily transfer the ownership to others.

Taxation: – Taxation is the benefit of LLP. The minimum alternate tax and dividend distribution tax are the out of the category of Limited Liability Partnership. The tax concept is very less in LLP as compared to the company.

Essential requirements before forming an LLP entity or Registration Guide

The LLP has at least two members as partners but there is no maximum limit in that count. Here in LLP, the business carries within 6 months itself. Any individual or a body corporate can be the partner of an LLP. The body corporate can be an LLP, the laws relating to an LLP does not involve in the partnership firm. Similarly, any changes in the responsibilities of partners should not affect the LLP. 1) Number of partners

The requirements related to the LLP are already discussed above. The minimum number of partner count is 2 and there s criteria in the maximum count. Any person or business can form as an LLP.

2) Conditions when the individual can’t be the partner

Cases like, if the person behaves like an unsounded one in front of the court, undischarged insolvent, the person who already applied an application relating to any case and it is in pending are the main conditions of a person who cannot process as a partner.

3) LLP Agreement

The LLP agreement is a written document between the partners or the partners and the LLP. The agreement deals with the rule and regulations of each partner with the LLP. The first schedule in the LLP defines certain conditions and duties of partners and LLP and its mutual partners. The first schedule can be applied to the LLP agreement.

4) Designated partners

Minimum two numbers of individual partners are necessary for this area. At least one f them must be a resident in India. Anyone of them can be the designated partner.

5) Liability of the designated partners

The liability of the designated partners includes responsible for doing all the acts, matters, and things are required to one by the partners. The duties include filing of the company document, return, report submission, etc. He/She must liable for all the penalties imposed on the LLP for any breach.

6) Duties of Designated Partners

Notify the changes in the LLP to the registrar

The changes of registered office address to the registrar

Changes of partner’s name address to Registrar

Annual return filing, statements of accounts filing and another document, etc

7) Popular Name of an LLP

The LLP name must end with the word “Limited liability partnership” or “LLP”.

No LLP Registration Guide names are identical with the names of others or undesirable words of Central Government. The name must be unique. If the proposed business of the LLP relating to the stock exchange, banking or anything else, it must need an authorized signature from the concerned office.

Advantages of an LLP

Right to enter into a contract: the outer structure defines the right to enter into a contract sale and purchase, hold the property, common seal, etc. the limits of this right to the extent of its assets of its partners to their contribution.

Agreement in LLP Registration Guide

The internal structure of the LLP is defined by the connection between the LLP and its partners. Depending on the nature of trade of the business the agreement varies as complex and simple. Manufacturing and trademark sectors are simple but service sectors are a complex one. The agreement decides the profit shares, payment to partners, and nature of duty. If there is no agreement then the first schedule of the act may apply as the provision of the Indian Partnership Act. Another liberty of companies and provided to the partners of LLP can transfer their rights and can receive the distribution also. It decides the partner’s interest in the business.

Right to investigate the affairs

LLP Registration Guide provides the right to investigate the affairs either on the basis of the court or act the request of partners. The Indian Partnership Act has not such kind of provisions, but the companies Act has certain alignments. It avoids longer legal actions in Civil Court.

Merge and amalgamations

The additional features include it deals with companies act and can be merged, arranged and compromise certain agreement. The arrangements and compromise provide a new life to the LLP.

Concept of essential audit principles: – to check the internal management of the company and its accounts is necessary with regards to a company. For this, we need to appoint an auditor. But in the case of LLP Registration Guide, there is such a requirement. If the company turnover exceeds Rs.40lakh or the contribution exceeds Rs.25 lakhs it is mandatory to act with auditory principles.

Conclusion:

LLP Registration is not a big deal. We yourauditoroffice in Coimbatore provides you the best way of Incorporation with hassle-free manner. We are also providing company registration, trademark registration, etc. If you want to get more details about our services, you can contact us. We are here for your support.

#LLP Registration in Coimbatore

0 notes