Limited liability partnership is registered with the process which is similar with private limited Company and the documentary requirement for the registration is also 90% same as private limited company. Limited liability partnership is a combination of both partnership and a Company. It has the feature of both these forms. As the name suggests partners have limited liability in the company which means that personal assets of the partners are not used for paying off the debts of the company. Nowadays it has become very popular form of business as many entrepreneurs are opting this. One of the form of business entity which is recognised by start up India is LLP along with private limited Company. To know more contact us and consult with professionals having 10 year plus industrial experience.
Forming an LLP is an easy process. It is not complicated and time consuming like the process of a company.
The partners of the LLP is having limited liability which means partners are not liable to pay the debts of the company from their personal assets. No partner is responsible for any other partner misbehaves or misconduct.
The life of the Limited Liability Partnership is not affected by death, retirement or insolvency of the partner.
There is no restriction upon joining and leaving the LLP. It is easy to admit as a partner and to leave the firm or to easily transfer the ownership on others.
Yes, it is the benefit of LLP. Limited liability partnership is exempted from various taxes such as dividend distribution tax and minimum alternative tax. The rate of tax on Limited Liability Partnership is less than as compared to the company.
Every business has to appoint an auditor for checking the internal management of the company and its accounts. However, in the case of LLP, there is no mandatory audit required. The audit is required only in those cases where the turnover of the company exceeds Rs 40 lakhs and where the contribution exceeds Rs 25 lakhs.
