Want to register your LLP? Walk-in to Smart Auditor and get the best expert services over Trichy, Salem and Erode. The new corporate business structure ‘Limited liability partnership’ was introduced by the effect of LLP Act, 2008 on 31st march 2009. The LLP is termed as India’s preparedness for Future. The government started to think deep about the LLP when the business need is concerned. Of late, the need was felt to have a corporate like structure which is less arduous, less expensive, ease of operations, adaptable, and acceptable to various stakeholders. The LLP consist of two forms of business associations, namely ‘company’ and ‘partnership firm’.
Thus we can say an LLP act as the hybrid of a company and partnership firm. It is an agreement based corporate structure gives the benefits of Limited liability along with flexibility of the partnership. The structure of the LLP agreement has been left to the discretion of the partners. The liability of the partners is limited to the agreed contribution. The partners are free to decide the internal structure of the entity. Unlike the company there are no requirements for the board of directors, board meeting or shareholder meetings etc.
Documents required for LLP Registration
- PAN Card of all partners
- Address proof of each partner (Aadhaar card/ Voter ID/ Driving License)
- Photography of each partners (Passport size photo)
- Business address proof (Latest electricity bill/ Phone Bill or any other utility Bill)
- NOC from the landlord
- Rental Agreement of the registered office
Advantages behind LLP Registration
Limited liabilities of each partner
The LLP limits the personal risk to their partners. LLP enters a contractual property in its own capacity. The financial contribution of every partner is restricted to the capital contribution regarding the LLP agreement. Most of the new business prefers LLP because there is no need to indulge their personal assets in company shares and debts.
Separate legal existence
The LLP Registration creates a separate legal identity than its partners. After govern with the LLP Act it gets certain rights to contract with other entities, legal actions, own assets and borrow funds in the name of LLP. It is the major advantages and is not available to the regular partnership firm.
LLP agreement, accomplishment among the Partners of LLP etc refers the operating structure of the rights and responsibilities of the partners. LLP select the designated member who controls the day to day operations typically. It has individual partners and existing business as its members. It allows defining the responsibilities of each partner. It really helpful to other partner’s interest if any other causes the loss.
Less compliance requirements
The advantages of an LLP registration over private limited company are lesser compliance. It does not have any audit requirements until it reach a maximum of turnover or contribution. The compliances of professional services are available at cheaper rates than companies.