Limited Liability Partnership is a form of legal entity in which all the partners or some partners have limited liabilities. It is run by partnership and cooperation between the partners. Each partner in the LLP has a liability and no other partner will be responsible for his liability or his misconduct and negligence of work.
What Are The Benefits of a Limited Liability Partnership?
- The internal structure of a LLP is less complex and easy to organize in comparison to a company.
- You can have any number of partners and there is no legal maximum number of partners required for a LLP however obviously the minimum required number is 2.
- The fund raising and utilization is completely dependent on the partner’s will and say. However they have to follow the rules of Companies Act 2013.
- You can save your amount of Dividend Distribution Tax, as you do not have to pay it for LLP while in case of company it’s compulsory.
- It’s very useful for professional like the Doctors, Advocates, Chartered Accountant and Engineers to register themselves as LLP.
- There is no such minimum amount of capital that is required to start a LLP unlike a company which requires certain fixed minimum funds to be invested.
- There are no compulsory audits required unlike companies where regular audits are mandatory.
What Are The Disadvantages of a Limited Liability Partnership?
- The LLP cannot raise money or funds from the public.
- The act of one partner without the consent of other partner may bind the LLP.
How Can We Apply to Register For a Limited Liability Partnership?
In the first step is to get the digital signatures of all the partners. And all the partners need to apply for the DIN i.e. Director Identification Number which is mandatory to become a partner in the Limited Liability Partnership. You must then apply for the approval of the name of the LLP. And then get the Certificate of Incorporation from Indian Registrar of Companies as it is a proof of registration. After this you must then apply for the PAN (Permanent Account Number) of LLP. And file all the related documents of the LLP and also apply for current bank account which is a mandate.
So what are you waiting for? If you have any doubts or further queries then don’t hesitate to get in touch with us, we are the leading firm who offers reliable online legal processes. All you need to do is to dial our mentioned phone number on the website of Swarit Advisors and we can help you to get your Limited Liability Partnership Registration done without any errors or problems.
