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A Limited Liability Partnership (LLP) in India is a business structure that combines the benefits of a company and the flexibility of a partnership firm into a single entity. This one-of-a-kind hybrid is ideal for growing small and medium-sized businesses. LLP is governed under the Limited Liability Partnership Act, 2008.
In India, maintaining and forming a Limited Liability Partnership is convenient. There is no upper restriction on the number of partners required to form an LLP. The LLP agreement describes the rights and obligations of the Partners. In an LLP, one partner is not accountable for the misbehaviour or negligence of the other partner. All compliances and regulations mentioned in the LLP agreement are the partners’ responsibility.
No need for the lowest paid-up capital for starting a Limited Liability Partnership.
A Private Limited Company can be registered, managed and requires less legal compliance.
One of the biggest edges of a Private Limited Company is its distinct identity from its members, which limits their liability. A company is a separate person having its rights and obligations enabling it to enter into contracts in its name, and the right to sue & be sued.
As long as the company is separate from its members in the event of a death or transfer of shares, your business will not be affected.
PAN Card – A self-attested copy of the PAN Card of all partners.
Partners Address Proof – Self-attested copy of Aadhar Card, Voter ID/ Passport/ Driving Licence of all partners needs to be submitted.
Business Address Proof – Utility Bill (Electricity/Telephone Bill) of the place of business are required.
NOC from the owner – No Objection Certificate from the property owner will be needed.
Rent Agreement – Rent Agreement from the owner of the place of business, if rented.
Photograph – Latest Passport size photograph of all partners.
*Other relevant data as per case!
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Every LLP’s finances must be audited in line with Rule 24 of the LLP Rules 2009. Such guidelines, for example, provide that any LLP whose turnover does not exceed forty lakh rupees in any fiscal year, or whose contribution does not exceed twenty-five lakh rupees, is not required to have its records audited.
A Digital Signature Certificate (DSC) is a safe and reliable way to send documents electronically. Thus, all digitally signed submissions made by companies/LLPs under the MCA21 e-Governance program must be submitted by a person authorised to sign the document.
Director Identification Number (DIN) is a unique number assigned by the MCA to a person upon becoming a Partner of LLP. The Ministry of Corporate Affairs (ROC) issues DINs. Similar to a PAN card number. LLP Partner appointments require the mention of DIN in documents.
Yes, it is necessary to submit certain documents for your LLP. An LLP is required to file LLP Form 8 (statement of account & solvency) and LLP Form 11 (annual return) annually. You must file annual returns within 60 days as soon as the financial year closes.
Not required. For the same purpose, you can use your home address as your registered office.
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