Limited Liability Partnership

Limited Liability Partnership

We provide all the services pertaining to LLPs, namely

  • Incorporating limited liability firms.
  • Drafting and vetting of LLP Agreements.
  • Conversion of company or partnership firm into limited liability partnership firms or vice-versa.
  • Filling of returns, statement of account or obtaining of Designated Partner Identification Number (DPIN) etc.
  • Income tax or other related matters for Limited liability firms.

Limited Liability Partnership entities, the world wide recognized form of business organization has now been introduced in India by way of Limited Liability Partnership Act, 2008. A Limited Liability Partnership, popularly known as LLP combines the advantages of both the Company and Partnership into a single form of organization.
LLPs also have many advantages over proprietorships, partnerships and limited companies, as elaborated below Low cost of Formation and compliances.

  • No requirement of minimum contribution
  • As against company there is no minimum capital requirement in LLP. An LLP can be formed with least possible capital..
  • No limit on owners of business
  • An LLP requires a minimum 2 partners while there is no limit on the maximum number of partners.
  • Lower Registration Cost
  • The cost of registering LLP is low as compared to cost of incorporating a private limited or a public limited company.
  • No requirement of compulsory Audit
  • All limited companies, whether private or public, irrespective of their share capital, are required to get their accounts audited. But in case of LLP, there is no such mandatory requirement. This is perceived to be a significant compliance benefit.

A Limited Liability Partnership is required to get the audit done only in the case that:-

  1. The contributions of the LLP exceeds Rs. 25 Lakhs, or
  2. The annual turnover of the LLP exceeds Rs. 40 Lakhs
  • lower compliance burden
  • Every year, there are about 8 to 10 regulatory formalities and compliances are required to be duly completed and submitted by a Private limited company whereas a Limited Liability Partnership is required to file only two, namely, the Annual Return & Statement of Accounts and Solvency.
  • Taxation Aspect on LLP
  • For income tax purpose, LLP is treated on a par with partnership firms. Thus, LLP is liable for payment of income tax and share of its partners in LLP is not liable to tax. Thus no dividend distribution tax is payable.