Limited Liability Partnership , LLP incorporation is a type of partnership in any type of business venture, in which all participating members have limited liabilities. This means that no spouse is responsible for the loss, negligence and / or misconduct of the other spouse. Since not all partners have limit and full liability, this limit liability is known as partnership. Unlike shareholders, partners also have the right to conduct business. Because of these characteristics, it can be consider that LLP reflects the characteristics of both the corporation and the partnership.
An NRI or foreign national designated partner can become a designated partner in a limited liability. This partnership is possible after obtaining the Identification Number (DPIN). However, the LLP must have at least one designated partner resident India. In fact, even a foreign director can be a majority shareholder in a company
LLP incorporation in Chennai
LLP incorporation in Chennai T.Nagar is a relatively simple process that can be sum up in the following simple steps:
Step 1: Obtain Digital Signature Certificate (DSC)
The first step towards LLP incorporation in Chennai T.Nagar is to obtain the digital signatures of all designated LLP partners. Digital signatures are require as LLP documents are file online. These documents have digital signatures that further help in obtaining the certificate.
Digital signatures can be obtain from essentially certified government agencies, such as the National Informatics Center, the IDRBT Certifying Authority, e-Mudra, CDAC and NSDL. The cost of acquiring DSC will be as per the certifying agency applied for by the applicant.
Step 2: Name reserve
Similarly, To register a proposed LLP incorporation in Chennai T.Nagar, the applicant needs to obtain a Limited Liability Partnership-Reserved Unique Name (LLP-Run), which can be processed at a central registration center. However, before quoting or quoting a name, it is always advisable to check through the Corporate Affairs Ministry (MCA) portal for a free name. This will provide the proposed LLP with a list of companies with the same or similar name. Once the name is select, the registrar will approve the name which is not very similar to the existing LLP. The LLP-run will need to be submit along with the fee which will then proceed for the approval of the Registrar.
Step 3: Inclusion of LLP
Then For inclusion of LLP, the Registrar is require to fill up a form for setting up a Limited Liability Partnership (FILLP). Fees have to be pay as per attachment ‘A’. Application for allotment will be approve by 2 persons only.
Step 4: File a limited liability partnership agreement
This agreement governs the mutual rights and duties between the partners in LLP incorporation. The online form can be file online on the contract MCA portal. Form 3 for LLP Agreement must be fill out within 300 days from the date of insertion. The LLP agreement has to be print on stamp paper, with the stamp paper of each state being different. It takes about 15 days to get DSC and Form 3, subject to availability of all documents.
Comparison between LLP and Partnership
Prevailing law: Under the Limited Liability Partnership Act, 200, limit liability partnership is prevalent there and is made under various rules.
Charter Document: An LLP agreement is a charter of an LLP that outlines the scope of its operations and the rights and duties of partners through the LLP.
Incorporation Formalities: Various forms are fill with the registrar of LLP with fixed fee
Common Seal: It indicates the signature and may be the LLP’s own common seal depending on the terms of the contract.
Foreign Participation Foreign nationals can become partners in an LLP incorporation in Chennai T.Nagar.
Ownership Assets: LLPs independent of partners own assets
Partner Liability: Their contribution to the LLP is limit except in cases of intentional fraud or misconduct or misconduct by the partner.
Tax: 30% plus flat rate of education on LLP income
Transfer of shares: In case of death of the partner, the legal heirs have the right to get back the capital contribution + share in the accumulated profit, if any. Legal inheritance will not become a partner
Prevailing law: Partnership is govern by the Indian Partnership Act, 1932 and various rules made there.
Charter Document: A partnership deed is a charter of a charter that outlines the scope of its operation and the rights and duties of the partners.
Incorporation Formalities: In case of registration, the form / affidavit along with the partnership deed is require to be fill with the registrar of the firm, as well as the require filing fee.
Common Seal: There is no aspect call of common seal in partnership
Foreign Participation: Foreign nationals cannot form a partnership in India
Ownership assets: The partners have joint ownership of all the assets of the partnership firm
Partners Liability: Unlimited. Partners are different and jointly responsible for the actions of other partners and personal and liability extends to their personal property.
Tax liability: 30% plus partnership on flat income.
Transfer of shares: In case of death of the partner, the legal heirs have the right to return the share in capital contribution + accumulated profits, if any. Legal inheritance will not become a partner.
Separate Legal Entity: Limited Liability Partnership is legally recognize as a separate entity. Therefore, an LLP may have its page, bank accounts, licenses, approvals, contracts, assets and liabilities in its unique name.
Limited liability: The liability of the partners of the partnership is limit to the extent of their contribute to the LLP incorporation and the personal assets of the partners cannot be use to pay the liabilities of the LLP under any circumstances.
Tax compliance is the same for both private limited company and LLP. However, when it comes to compliance with the MCA, LLPs have significant advantages. If the annual turnover of LLP does not need to have its accounts audited. 40 lakh and a capital contribution of Rs. 25 lakhs. A private limited company, on the other hand, will have to file its financial statements every year regardless of its turnover.
Simplicity: The administrative process of forming and maintaining an LLP is much simple than that of a private limited company.