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Unlike Partnership, no partner their personal properties are liable on account of the independent or unauthorized action of other partners or for their misconduct.
The mutual rights and duties of the partners of an Limited Liability Partnership (LLP) are governed by Limited Liability Partnership (LLP) Agreement.
The Limited Liability Partnership (LLP) have all the benefits of a Private Limited Company, along with the possibility of unlimited members.
Compare to Private Limited Company or Partnership, the greatest feature of a limited liability partnership is that there is no limit on the number of partners.
A firm, Private Limited Company or an unlisted public Private Limited Company can be converted into Limited Liability Partnership (LLP).
Compare to Private Limited Company, the Complaince Cost is very low. Upto a certain limit of Share Capital and Turnover, no audits are required.
For Registered Office
Limited Liability Partnership Registration (LLP) will provide a platform to small and medium enterprises and professional firms to conduct their business/profession efficiently which would, in turn, increase their global competitiveness. After Limited Liability Partnership Registration, (LLP) it will become a corporate business vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in flexible, innovative and efficient manner, as a hybrid of companies & partnerships providing benefits of limited liability while allowing its members the flexibility for organizing their internal structure as a partnership. Limited Liability Partnership (LLP) is a legal entity under Limited Liability Partnership Act, 2008.
A Limited Liability Partnership, popularly known as LLP combines the advantages of both the Private Limited Company and Partnership into a single form of organization. Limited Liability Partnership (LLP) ) is a new corporate form that enables professional knowledge and entrepreneurial skill to combine, organize and operate in an innovative and proficient manner. It provides and alternative to the traditional partnership firm with unlimited liability. After Limited Liability Partnership Registration (LLP), its members can avail the benefit of limited liability and the flexibility of organizing their internal management on the basis of a mutually-arrived agreement, as is the case in a partnership firm.
LLPs proved to be a unique mode of doing business appealing especially to those run by freelancers, professionals of different specialisations such as digital marketers, software engineers, traders, real estate agents, advocates etc. resorting to Joint Ventures, Venture Capitals, Small and medium enterprises formats to fulfil their business aspirations. People from different walks of life who had been wanting to tie-up for commercial purposes found this as a perfect way out, one which was needed for quite a long time, one which had the flexibility of a partnership, the flexibility of organizing internal management on the basis of a mutually arrived agreement amongst the partners along with the advantages of limited liability of a company including but not limited to limited liability, all at a low compliance cost.
Limited Liability Partnership (LLP) is a body corporate and legal entity separate from its partners, have perpetual succession and any change in the partners of a Limited Liability Partnership (LLP) shall not affect the existence, rights or liabilities of the Limited Liability Partnership (LLP) . To start a limited liability partnership at least two members are required initially. However, there is no limit on the maximum number of partners. After Limited Liability Partnership Registration (LLP) some or all partners (depending on the jurisdiction) have limited liabilities. It therefore exhibits elements of partnerships and corporations. In an Limited Liability Partnership (LLP) , each partner is not responsible or liable for another partner’s misconduct or negligence. For Limited Liability Partnership registration, minimum 2 partners are required.
At present, under partnership law, the maximum numbers of partners a partnership firm can have is fifty also the partners are liable jointly and severally and most importantly their liability is unlimited which means that the personal property of the partners can also be attached for the satisfaction of the debts, in addition to the capital contributed by the partners in the firm. This is the principle reason why partnership firms of professional have not grown in size to meet the challenges posed today. Not only are the firm’s assets completely liquidated under the standard principles of the partnership law, but the partners are also jointly and severally liable for the entire liabilities of the partnership. Thus, the present system acts as a deterrent for the growth and expansion of service based organizations.
The Limited Liability Partnership (LLP) is viewed as an alternative corporate business vehicle that provides the benefits of limited liability but allows its members the flexibility of organising their internal structure as a partnership based on a mutually arrived agreement. The Limited Liability Partnership (LLP) registration would enable entrepreneurs, professionals and enterprises providing services of any kind or engaged in scientific and technical disciplines, to form commercially efficient vehicles suited to their requirements. Owing to flexibility in its structure and operation, the Limited Liability Partnership (LLP) would also be suitable vehicle for small enterprises and for investment by venture capital.
As the basic structure or model of the Limited Liability Partnership (LLP) is similar to that of any partnership firm Limited Liability Partnership (LLP) requires minimum two partners to form it. Limited Liability Partnership (LLP) cannot be formed by a single person. NRI/Foreign national who want to form an Limited Liability Partnership (LLP) in India then at least one partner should be a resident of India. Two foreign partners cannot form Limited Liability Partnership (LLP) without having one resident Indian partner along with them. It takes more days to form, as all the partners’ signatures are required for each and every document which is then to be attached to requirede-forms. Therefore self attestation of each partner on documents is more as compared to the formation of any Private ltd Private Limited Company.
There should be at least 2 persons (natural or artificial) to form an Limited Liability Partnership . In case any Body Corporate is a partner, then he will be required to nominate any person (natural) as its nominee for the purpose of the Limited Liability Partnership (LLP).
Biswas Filing is a pre and post business registration compliance management service provider. We are a group of Chartered Accountants, Company Secretaries and Advocates based in Thiruvananthapuram. Our aim is to register start-ups, micro, small and medium business at an affordable cost, by limiting our charges, in order to provide a support for the budding businesses. We are delivering a wide range of services to the business enterprises in Kerala, including Company Registration, Limited Liability Partnership Registration, Partnership Firm Registration, OPC Registration, GST Registration and Filing, Accounting and Book Keeping Services and Filing firm.