A limited liability partnership firm is a partnership when all the partners of the firms have minimum liability, depending upon the jurisdiction. In a limited liability partnership, one partner will not be responsible for another partner’s misconduct and wrongdoing. This partnership differs from a traditional partnership entirely. Limited liability partnerships can be created with all or some partners. In India, the limited liability partnership act 2008 was officially introduced on 9 January 2009 and was in effect from 31 March 2009. Limited Liability Partnership Registration Online is possible without any hassle.
Here are some key factors of LLP
- In the matter of taxation LLP is treated as a traditional partnership.
- The liability of partners will depend upon what partners have agreed on and contributed.
- The LLP act requires that one of the partners in LLP must be an Indian.
- In LLP partners are shielded from the wrongdoings and misconducts of other partners.
Key features and benefits of LLP
- The credibility of the business: The LLP requires to put LLP information such as the name of the LLP, date of the formation, office address of the LLP and status, in public search database. Which makes it more available to the customers and investors.
- Separated legal entity: The LLP is treated differently from its partners meaning that it would be given a unique registration number, and it stays the same during its lifetime even if the company changes its name.
- Auditing provision: The LLP which has not crossed the bar of 40 lakh rupee in a financial year and it has not made a contribution more than 25 lakh rupees need not get the audit of their accounts.
- Flexibility in the Organization: A LLP has flexibility in partnership in an organization. Normal dealing with the day to day work will be written in the agreement such as losses and profit, ownership of property, etc.
LLP Registration Online India can be done easily. Here is the online process of Limited Liability Partnership registration.
Before registering for LLP one must apply for the digital signature of the partners. Because every work under LLP will be done online and partners need to sign it digitally. After that, a unique name should be created to proceed with the LLP. After it, a form for incorporation of limited liability partnership should be filed under the guidance of the registrar having jurisdiction of the state in which the LLP office is situated. Now an LLP agreement should be created. The agreement should be filed within the 30 days of the incorporation of the LLP and it has to be printed on a stamp paper. After that partners need to apply for a PAN card. And in the end, open an LLP bank account to complete the process. Now we know everything about an LLP. it entirely depends upon partners whether they want to go for LLP or not. Some partners trust each other more than other partners so they might go with a traditional partnership. We do not see any problem with either of the two options.