Limited Liability Partnership entities, the world wide recognized form of business organization has now been introduced in India by way of Limited Liability Partnership Act, 2008. A Limited Liability Partnership, popularly known as LLP combines the advantages of both the Company and Partnership into a single form of organization.
A LLP is a legal entity and a juristic person established under the Act. Therefore a LLP form of organization has wide legal capacity and can own property and also incur debts. The Partners of a LLP have no liability to the creditors of a LLP for such debts.
A LLP does not require audit if it has less than Rs. 40 lakhs of turnover and less than Rs.25 lakhs of capital contribution. Therefore, LLPs are ideal for startups and small businesses that are just starting their operations and want to have minimal regulatory compliance related formalities.
Limited Liability means the status of being legally responsible only to a limited amount for debts of a LLP. Unlike proprietorships and partnerships, in a LLP the liability of the members in respect of the LLP’s debts is limited.
A LLP being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No Partner can make any claim upon the property of the LLP so long as the LLP is a going concern.
The ownership of a LLP can be easily transferred to another person by inducting them as a Designated Partner of the LLP. LLP is a separate legal entity separate from its Managing Partners, so by changing the Managing Partners, the ownership of the LLP can be changed.
In the LLP form of organization it is possible for a LLP to make a valid and effective contract with any of its members. Thus, a person can at the same time be a Partner, creditor, supplier and also an employee of the LLP.
Digital Signature Certificate ( DSC is required for e-filling with MCA. A DSC application need to be filed along with ID and address proof duly attested by bank manager, gadzeted officer or post master. )
Its a unique number which is alloted to the Director of a company by the Ministry of Corporate Affairs (MCA).
A minimum of one and maximum of six proposed name can be submitted to the MCA for name approval. Name approval will be obtained within 1 working days.
MOA and AOA are drafted in line with the provision of Companies Act 2013. MOA is a legal documentation which defines activity of the company. AOA is the rule book of company operations.
After submitting the documentation the Ministry of Corporate Affairs will issue a certificate of incorporation.
Once the Ministry of Corporate Affairs issue the company incorporation certificate, we will apply for the TAN & PAN.
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