About LLP Registration:

LLP Company Registration Service is now possible from anywhere in India. LLP was brought in India by way of the Limited Liability Partnership Act, 2008. The basic premise behind the introduction of LLP is to provide a form of business entity that is simple to maintain while providing limited liability to the owners.

The main benefit of a Limited Liability Partnership over a traditional partnership firm is that in an LLP, one partner is not responsible or liable for another partner’s misconduct or negligence. It also provides limited liability safety for the owners from the debts of the LLP. Therefore, all partners in this company enjoy a form of limited liability protection for each individual’s protection within the partnership, similar to that of the shareholders of a private limited company. However, unlike private limited company shareholders, the partners of an LLP have the right to manage the business directly.

Limited Liability Partnership is one of the simplest forms of business to incorporate and manage in India. With a simple compliance formalities and easy incorporation process, LLP is preferred by Professionals, Micro and Small businesses that are family owned or closely held. Since, LLPs are not adequate of issuing equity shares, it should be used for any business that has plans for raising equity funds during its lifecycle.

LLP vs Partnership Firm in India:

Partnerships certified under the Partnership Act, 1932 used to be a very popular form of Business Entity in India due to the simplicity of registration and ease of maintenance. In India through the Limited Liability Partnership Act, 2008, the prominence of Partnership’s has been replaced by the LLPs. It is easy to register, offer a range of benefits to the promoters and is easy to maintain, making it ideal for many small and medium sized business that would otherwise opt to begin as a Proprietorship or a Private Limited Company

Partnership:

Partnerships are registered under the Partnership Act, 1932. The partners of a Partnership certified under the Partnership Act, 1932 are personally liable for an unlimited amount of Partnership liabilities. Hence, the Partners and the partnership firm are not considered separate legal entities, neither does the Partnership have perpetual existence.

Limited Liability Partnership: – LLPs are registered under the Limited Liability Partnership Act, 2008. The Partners of it is not liable for the liabilities of the Partnership and the liability of a Partner is limited to the amount of his/her capital contribution to the LLP. Therefore, the LLP and the Partners of an LLP are treated to be separate legal entities, and it has a perpetual existence, until dissolved by the Promoters.

Limited Liability Partnerships are registered with the Ministry of Corporate Affairs. LLP registration method is similar to that of a Private Limited Company Incorporation process, viz. obtaining Designated Partner Identification Number (DPIN) for the Partners, obtaining Digital Signature Certificate for the Partners, obtaining name approval from MCA, obtaining Incorporation Certificate and filing LLP Agreement.

Number of Partners & Requirement:

Partnership:

Any Indian National residing in India can be a Partner in a Partnership Firm including minors. A Partnership Firm should have at least 2 Partners and can only have a maximum of 20 Partners. The Partnership Deed defines such as Management of the Firm and one or more Partners can be designated to manage the Partnership Firm.

The share in a Partnership can be moved to another person after obtaining the permission of all the Partners in a Partnership. The transferability of a Partnership is cumbersome. Partnership may be converted into an LLP or a Private Limited Company, through a lengthy process.

Limited Liability Partnership:

Any Indian National residing in India can be a Partner in LLP. Foreign Direct Investment is grant in it with prior RBI approval. Minors are not allowed to be part of a limited liability partnership. It should have at least 2 Partners and is allowed to have unlimited Partners. The Agreement governs form of management of an LLP, and one or more partners can be designated to manage the activities of the LLP.

Compliance & Taxation:

Partnership: – The earnings of a Partnership firm are taxed at 30%. There are no annual return filing conditions for a Partnership firm.

Limited Liability Partnership:

The earnings of an LLP are taxed at 30%. It should file annual return with the Ministry of Corporate Affairs (MCA).

We at Nadeem Sarwari and Associates, provide the best services and deliver our service on time. We offer tailored services to startups, like Sole Proprietorship, Partnership firms, Private Limited company, LLP, One Person Company, etc.