LLP Registration

The Limited Liability Company (LLP) is a balanced structure, which brings benefits to conventional society and continues to limit the personal responsibilities of the partners. It is regulated as a contractual agreement between the partners under the Limited Liability Companies Act 2008. It has quickly become a popular choice for professional services and firms such as CA firm, accounting firms, consulting firms, and so on.

LLP registration is simple with TaxCaller

The LLP registration process in India is renewed by the Ministry of Corporate Affairs. A faster LLP onboarding process is available on October 2, 2018 as part of the government's ease of doing business initiative. TaxCaller experts have assisted hundreds of entrepreneurs with the LLP registration process, in major cities in India including Mumbai, Delhi, Bangalore, Pune, Ahmedabad, Hyderabad, and more. Our services have an equally relevant reach in smaller cities and towns in the country

2. Difference Between LLP and Private Limited ?

LLPs are similar to Private Limited Companies with respect to operational and compliance requirements. Recognized as a separate legal entity from the partners, you can contract or get involved in any legal proceedings on your own behalf. This allows partners in an LLP to separate business liabilities or debts that are recovered from their personal assets. The compliance requirement here is higher than that of normal partner companies. However, compared to a private limited partnership structure, it is easier to incorporate and maintain.

As a drawback, the transfer of ownership of a limited liability company is not as easy as that of a company. No LLP can issue ESOP. For that reason, LLP is not the most ideal option for startups that want to hyper-grow, seek seed money or venture capital, or issue equity capital for their employees.

As per the Limited Liability Company Act, 2008.LLP is a limited liability partnership and some things that come with a partnership like it’s basically people in partnership together possibly with limited companies as partners and but it's it has limited liability and to go along with the limited liability. It means you have to register with registrar of companies and you have to submit accounts to registrar of Companies so the upside is that limited liability so many partnerships have to become LLP s just just to get the limited liability the the other side to it is how are they tax they attacks just the same as normal partnerships so there's probably less scope for tax planning. A lot of solicitors accounting firms are LLP s and one of the good things about LLP is easy to go in and out you'd have to worry about share sales you can just rewrite the partnership split and in a way that works for the business so there's more flexibility on taking income out the company without having to worry about shares but overall well there are some tax disadvantages you have to pay when you earn it not when you take it out you.

3. Difference Between LLP and Partnership?

LLP Protection: The basic purpose behind the introduction of the Limited Liability Company (LLP) is to provide a form of business organization that is easy to maintain and at the same time provide limited liability to owners. A limited liability company combines the advantages of the company and the partnership into a single form of organization and one partner is not liable for the misconduct or negligence of another partner. Therefore, all partners have a limited form of liability for the protection of each individual within the partnership, similar to that of the shareholders of a corporation. However, in Limited Liability Company partners have the right to directly manage the business. An LLP also limits a partner's personal liability for errors, omissions, incompetence or negligence of employees or other LLP agents. Limited Liability Partnership is one of the easiest legal form to incorporate and manage business. 

Number of Partners: Partnership Firm And LLP Must Have A Minimum Of Two Partners To Register. After Incorporation, An LLP Can Have Unlimited Partners. In The Case Of A Partnership Firm, If The Number Of Partners At Any Time Is Reduced Below The Mandatory Minimum Of 2 Due To The Death, Disability Or Resignation Of A Partner, The Partnership Firm will Be windup. On The Other Hand, In The Case Of An LLP, If The Number Of Partners Drops Below 2, The Only Partner Can Still Find A New Partner To Fill The Position Without Dissolving The LLP.

4. Advantages of LLP?

Limited liability of partners. Because an LLP can enter into a contractual relationship in its own capacity, many new age businesses prefer LLP registration over partnership so that partner's protects their personal assets from the loss and liabilities of the business , Further more, one partner is not held responsible for the actions of negligence or misconduct of any other partner.

Flexibility. LLP agreement, deed among partners of an LLP, explains the operating structure, including rights and responsibilities of the partners. Its allow more Flexibility because the operation of the business, distribution of profits and responsibilities of day-to-day operations is determined by written agreement between the partners. 

Designated and non-designated members. LLP can be operated with different levels of membership.

Separate legal existence. LLP registration creates a separate legal identity from partners. Governed by the LLP Act of 2008, it allows the company to contract with other entities, take legal action, own assets, and borrow funds on behalf of an LLP. 

Corporate Entity. LLPs can appoint two companies as members of the LLP. at least one director must be a real person in an LTD company.

Lower compliance. A key benefit of registering an LLP over a private company is a lower compliance requirement. You do not have a mandatory audit requirement up to a certain level of billing or contribution. like companies. they do not apply to LLPs. Professional compliance services are often available at lower rates than corporate, making it profitable to maintain an LLP.

Protection of the name of the company. By registering the LLP with ministry of corporate affairs, you prevent another company or partnership firm from registering the same name.