Limited Liability Partnerships, or LLPs, have become increasingly popular in recent years. Many business owners, accountants, and law firms are seen to prefer Limited Liability Partnerships as their convenient choices. But what is a Limited Liability Partnership? Let’s look into the details now.
Limited Liability Partnership (LLP) is a balanced structure, carrying the benefits of a conventional partnership and still limiting partners' liability. LLP is an alternative to traditional general partnerships, which comes with all the risks of unlimited liability. By forming an LLP, partners can relish limited liability as well as some of the benefits of partnerships at the same time.
The Limited Liability Partnership Act, 2008, regulates the agreement as a contract between the partners. Limited Liability Partnerships are often formed by two or more individuals who are willing to share ownership and responsibility for the company's operations. Partnerships are bound by this agreement, as well as any other legal agreements that they enter into in their business transactions.
It combines the benefits and risks associated with traditional corporations and limited liability companies (LLCs). In a short period, the concept of LLP has become a popular choice, especially for startups.
Apart from the immense flexibility and lesser liability in LLPs in contradiction to traditional companies, there are some other factual distinctions such as:
If you are considering forming an LLP, the following is a quick rundown of their major aspects:
However, LLP Registration in Delhi needs proper guidance. If you want to register your startup as an LLP in Delhi and you are wondering how to do the same, get in touch with our experts. We have years of experience assisting and implementing successful startup registrations across India, and we will make the process seamless for you.
Any form of LLP Registration in India can be done efficiently by partnering with us. We also ensure that the LLP registration fees in Delhi are affordable for your startup and you don’t end up evacuating your coffers in the process.
The cost included in the formation of an LLP is much lower when compared to the establishment and maintenance charges of public or private companies. Moreover, it demands lesser compliance. Only 2 annual statements need to be filed namely, an Annual Return and a Statement of Accounts and Solvency.
The LLP's partners are only accountable to a certain extent. Their responsibility is restricted to the amount of money they put in. They aren’t liable for any losses in the business. Moreover, they can’t even be held responsible for any wrongdoing by other partners.
The LLP has its own separate legal identity from its partners, so it can sue and be sued separately from them. As these partnerships join forces, they are also bound by any other legal agreements that further their business goals. Nevertheless, LLP partners are not liable to be sued for dues by the LLP.
LLP registration in Delhi is affordable. The LLPs can even be formed without any minimum capital. They can be formed simply by the monetary contributions made by the partners of the LLPS.
The LLP registration in India has certain provisions which oblige the applicant to have at least two partners. Both partners should be Indian residents. As mentioned earlier, there is no necessity for minimum capital required for establishing an LLP in India. Each partner of the partnership should apply for the DIN separately.
Once a company's partnership is registered, partners have to submit various documents to the Ministry of Corporate Affairs(MCA) via the official portal. These documents include an original PAN card number, address proof, and other information like educational qualifications. These documents are submitted to the Registrar Of Companies for LLP registration in Delhi.
Now, the company needs to apply for the DSC for each partner of the LLP who possesses the DIN number. The digital signature certificate is a requirement for DIN holding partners to attach to all forms submitted. It will be needed in the future as well and is required for ROC Return and several other dealings. LLP registration in Delhi can receive DSC even in USB mode.
For registration of LLP in India, you need to apply for a company name. To avoid copyright infringement, please make sure your desired company name is available. After submitting the name request form to register the company, they will perform a thorough verification process to ensure that no one has registered a similar name as intellectual property for the company registration with the Ministry of Economic Affairs.
You have to wait till the name of your company is finally approved. Then, it is imperative to fill out the incorporation documents properly through the MCA portal with the Registrar of Companies (ROC). If there were any mistakes made during this process, then there is a one-time chance to edit them for a fee.
Once you've verified your form, the Registrar of Corporate Affairs in Delhi can then issue the main certificate of incorporation which will be the proof of registration for your new company.
A current account must be opened with the company name to which the certificate of incorporation is issued. The current account will be used for all financial transactions that must be carried out. This includes dividend payments, share transfers, and charges.
After filing the Certificate of Incorporation with the ACRA (Accounting and Corporate Regulatory Authority), the LLP Agreement must then be filed with the ROC office through their website. Just like when you are setting up a partnership firm, all of the company information of the LLP can be input so that it is all in one place.
If you want to register your startup as an LLP in Delhi and you are wondering how to do the same, get in touch with our experts. We have years of experience assisting and implementing successful startup registrations in Mumbai, and we will make the process seamless for you.
Limited Liability Partnership has become a popular form of business organization because it offers limited liability protection for its owners while allowing them to have control over management decisions.
One of the biggest benefits of the LLP is that it provides flexibility to owners by being able to share profits more easily. It also makes it easier for owners to exit or enter the partnership without triggering adverse tax consequences or ownership changes for other partners. Another great benefit of starting an LLP is that there are fewer formalities in its formation process than when you're forming a partnership or corporation.
If you are considering forming a Limited Liability Partnership, the best approach is to seek out professional advice. The governing state laws will differ in some respects, so it is important to be aware of these variations before agreeing. Our company ensures that LLP registration fees in Delhi remain easily affordable.