The introduced LLP structure allows creation of LLPs in a body corporate form i.e. as a separate legal entity, separate from its partners/members.
In short, the Limited Liability Partnership provides formation of a business organisation with limited liability to the owners.
As per the Act, the LLP provides the advantages of both the Company and Partnership and it is the easiest form of business to incorporate and manage.
Nowadays, LLP model is getting more popularity among Startup companies as it is cheaper(lesser Compliance) to run and maintain, it offers limited liability, many tax benefits, credibility and above all, it is registered with the Ministry of Corporate Affairs (MCA).
Limited Liability Partnership contains the features of both Partnership firm and Company. Following are the features which represent LLP.
LLP is a unique form of business which started on 9th January 2009. Limited Liability Partnership Act 2009 was introduced because it was seen that there were many people who want to do the business but afraid to open a company due to high compliance. In 2009, Lawmaker introduced Limited Liability Partnership because those who are habitual in running a Partnership can grow their business while doing business as LLP. Following is the comprehensive list of LLP benefits
For more Benefits visit Advantages of LLP
Partnership Business is a Traditional form business and LLP is modified version of partnership which carries some features from Companies Act 2013 as well.
To know more Visit LLP vs Partnership
Conversion of Business is required when any business reaches its saturation point it tends to grow more.
In case of Partnership Firm, it can be converted into any other business types like Partnership Firm can be converted into LLP, Private Limited Company, Public Limited Company, etc.
In the case of LLP, The privilege of conversion is not given in the LLP Act. This is the only flaw of registering an LLP.
Limited Liability Partnership (LLP) under the Limited Liability Partnership Act, are required to file the following Forms with the Registrar every year:
Statement of Account & Solvency
LLP Form 8
LLP Form 11
LLPs can do e-Filing in following ways:
The Designated partner (DP) (in the case of LLP) or authorized representative (AR) (in the case of Foreign Limited Liability Partnership (FLLP)) can upload the e-Forms on the LLP portal (after registering oneself as a user of the portal) at his convenience from his office/ home. E-filing is the most convenient way of registering an LLP.
Limited Liability Partnership (LLP) is taxed @30% flat on the profit earned by the LLP. To know more about the responsibilities of designated partners to save from imposing penalties. Visit Post Incorporation Compliance for LLP.