Concept of LLP?

LLP is an alternative corporate business form that gives the benefits of limited liability of a COMPANY and the flexibility of a PARTNERSHIP. Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership.

Difference between LLP and Partnership firm?

Under “traditional partnership firm”, every partner is liable, jointly with all the other partners and also severally for all acts of the firm done while he is a partner. Under LLP structure, liability of the partner is limited to his agreed contribution. Further, no partner is liable on account of the independent or un-authorized acts of other partners, and registered with Ministry of Corporate Affairs just like company

Difference between company and LLP?

A basic difference between an LLP and a joint stock company lies in that the internal governance structure of a company is regulated by statute (i.e. Companies Act, 2013) whereas for an LLP it would be by a contractual agreement between partners. LLP will have more flexibility as compared to a company and lesser compliance requirements

What is the Capital required to start LLP?

You can start a Limited Liability Partnership with any amount of capital. There is no requirement to show proof of capital invested during the incorporation process. Partner's contribution may consist of both tangible and/or intangible property and any other benefit to the LLP.

Can an existing company be converted to LLP?

Yes, any existing private company or existing unlisted public company can be converted into LLP by complying with the Provisions of clause 58 and Schedule III and IV of the LLP Act. Form 18 needs to be filed with the registrar along with Form 2 for such conversion.

How is LLP taxed?

It will be dealt under the Income Tax and other tax laws separately, prima facie a LLP is taxed as a partnership. The internal structure of the LLP is similar to that of a partnership. The members provide working capital and share any profits. Income derived by the members from the LLP will be closer to that of a partnership than to the dividends paid by companies.

Who can Incorporate a LLP?

Any two persons who consent to become partners can incorporate an LLP

What is (DPIN) designated partner identification number?

The Unique Number is required to allot to an Individual which remains valid for whole life of the individual and is required to become Partner of any LLP.

How can we select a name of the LLP?

Firstly we just need to find a unique name as prefix and promoters need to provide a name of the proposed LLP along with the significance of the word. Secondly, the name needs to include a word about the LLP business activity. Finally, before selecting Names it will be advisable to check on Google, MCA Portal, MCA Guidelines and Trade Mark site the availability of Name.

When we get the Certificate of Incorporation?

After filing incorporation details, and if the details are found to be correct then ROC issue certificate of Incorporation.

Do Partners have to be present personally to incorporate a LLP?

No, partners are not required to present personally because documents can be filed online at any place.

How much the time will it takes to incorporate a LLP?

To incorporate an LLP we required approximately 22 working days. The time taken for incorporation will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure a speedy process of incorporation, please choose a unique name for your LLP and ensure you have all the required documents are provided before starting the incorporation process

Is cost of incorporating a LLP is lesser than a Private Limited Company?

The cost of registration is almost the same for both.

Can a LLP owns property in its name?

An LLP can own and enjoy property in its own name, partners are not owners of the company's property.

Can an existing partnership firm or company be converted to LLP?

Yes, an existing partnership firm or a company that is unlisted can be converted into LLP. There are many advantages of converting a partnership firm into a LLP; however, the same doesn't apply for the conversion of a Company to a LLP.