Limited Liability Partnership (LLP) registration, popularly known as LLP registration is an alternative business vehicle to carry out business which combines the characteristics of a private company and a conventional partnership. LLP formation provides limited liability company status to its partners and offers the flexibility of internal arrangement through an LLP agreement between the partners. This combination will give entrepreneurs and businessmen a more structured business vehicle compared to a sole proprietorship or a conventional partnership. LLP registration provides the flexibility of controlling the business operation in accordance with the partnership agreement whilst enjoying the limited liability status compared to a company which is subject to strict compliance requirements under the Companies Act 2013 in most of its affairs. The major advantage of setting up a LLP registration in India is that it has a separate legal entity from its partners and combines the advantages of both the Company and Partnership into a single form of organization. In Limited Liability Partnership (LLP) registration, one partner is not responsible or liable for another partner’s misconduct or negligence, this is an important difference from that of a unlimited partnership.
LLP formation offers simple and flexible procedures in terms of incorporation of LLP and management and has less number of compliances in comparison to other entities. In an LLP, all partners have a form of limited liability company for each individual’s protection within the partnership, similar to that of the shareholders of a corporation.
Limited Liability Partnership is managed as per the LLP Agreement, however in the absence of such agreement the LLP would be governed by the framework provided under Limited Liability Partnership Act, 2008 (LLP act). LLP registration process is less complex than other form of business.
Unilex being the professionally managed firm provides LLP registration online within 15 working days, subject to government processing time. Our professionals help in estimating the LLP registration cost, documents required for LLP registration and hassle free procedure for Limited Liability Partnership (LLP) registration.
Legal protection and a limited liability to the shareholders are the main reason why business registration seek online company registration route.
pvt ltd company registration would exist in succession fashion as the governmental body treats it as a separate entity in terms of law.
Unlike normal Partnership firms, LLP firms, company registration more recognition as they are regulated in company point of view by law.
The primary reason of many prefering to stick to LLP registration is the obvious point of having no limit to the partners involved the set business.
The company rules are flexible and they can be effective as long as they are present in the partnership deed that would be agreed by all the partners.
The company can enjoy the benefits of tax and can claim for expenses like Salary to Directors, Professional Fees, Audit fees, Rent and Depreciation on its Assets.
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Sl. No. | Particulars | Partnership | Private Limited | LLP | |
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1 | Foreign Participation | Foreign National cannot be the partners in a Partnership firm. | Foreign national can be a member in a Company. | Foreign National can be a partner in a LLP. | |
2 | Tax Liability | Taxed at 30% plus surcharge and cess as applicable. | Taxed at a rate of 30% plus Surcharged education cess | Taxed at a rate of 30% plus education cess | |
3 | Transfer of Shares | Not Applicable | Ownership is easily transferable by the way of transfer of shares. | Transfer are governed by the LLP agreement. | |
4 | Annual Filing | No return is required to be filed. | Returns is required to be filed with ROC every year. | Returns is required to be filed every year. | |
5 | Audit of accounts | Required to have tax audit of their accounts. | Required to get their accounts audited annually. | Having turnover less than 40lacs or contribution less than 25 lac in financial year required to get their accounts audited annually. | |
6 | Rights/Duties/ Rights/Duties/ obligation of the partners/Managing Partners/ Directors | Governed by Partnership deed. | Governed by AOA and resolutions passed by shareholders or Directors. | Governed by LLP agreement. | |
7 | Registration | Registration is optional. | Registration with ROC is required. | Registration with ROC is required. | |
8 | Cost of formation | Nominal cost of creating a firm. | Minimum government fee for incorporation of private company is 6,000-7,000 approx/- | The cost of formation of LLP is lesser than the formation of company. |
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