What is LLP Registration?

LLP basically stands for limited liability partnership. LLP Firm Registration in Delhi more easy and less legal formalities way to register any company this is the only reason why people prefer more LLP Registration.

Limited liability partnership or LLP is a combination or mixture of partnership and corporate. LLP is a business structure which registered under by a legal LLP agreement. LLP Firm Registration in Delhi is a registration where partners bound their limited liability which they initiated at the time of registration.

In this LLP agreement it holds the information about the designated partners, their liability also roles and activities which designated partners need to perform in their LLP.

Every Limited liability partnership at least 2 partners must be required for registration of partnership whereas there is no limit of on the maximum number of partners under LLP Act, 2008.

Moreover, out of these partners, one partner must be an Indian Resident, if none of them have Indian Resident in that case, one nominee must be appointed to work as designated partners.

As LLP is more similar like partnership or corporation.

Advantages of LLP:

1) In LLP, no personal assets of partners can be take off or seized to clear partnership liabilities and debts as LLP is a separate legal entity.

2) In LLP, if one partner resigned or under bankruptcy then whole LLP would not be impacted or dissolve.

3)In LLP, it does not mandate any fixed contribution required. Minimum capital would be required. In fact, any partner can contribute in the form of tangible, intangible, movable or immovable assets in the partnership.

4) LLP follows principles of pass-through taxation, which means that the organization avoids the burden of double taxation, payment of dividend distribution tax (DDT) is not applicable, and all the partners are liable to pay only their personal taxes. Moreover, an audit is necessary only when the annual accounts cross INR 25 Lakhs or the turnover crosses INR 40 Lakhs. Make your LLP registration here

Drawbacks of limited liability partnership:

1) If the tax return not filed for LLP whether there is any activity done in LLP or not, a heavy penalty can be lead for non-compliance.

2) As in partnership, a single person cannot entertain for partnership its similar in LLP minimum 2 partners must be required.

3) LLP is not classified by shares, which makes it less possible to offer shares to receive funding in return.

4) LLP is not allowed external commercial borrowings (ECB), which means that the organization can’t acquire commercial loans from foreign banks, foreign financial institutions, or foreign partners.

Business Entity checklist documents for partners and LLP?

1) For Partners :

Pan cards, address proof, residence proof, photographs, passport(For all the foreign members)

2) For LLP

Proof or utility bill of registered office, a copy of the rental agreement signed between the landlord and you, and no-objection certificate acquired from the landlord.

How it is different from other registration methods?

The main basic difference of LLP from other registration method is its simple and non-complicated process with less legal compliance and formalities. This is the major difference why people prefer LLP as this is fewer legal formalities compare to other registration. Many small organizations have started choosing this business structure because it has a lot to offer and it doesn’t come with the hassles of a corporation or a partnership.

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