Limited Liability Partnership (LLP) was introduced in India by way of the Limited Liability Partnership Act, 2008. The basic premise behind the introduction of Limited Liability Partnership (LLP) is to provide a form of business entity that is simple to maintain while providing limited liability to the owners. LLP is one of the easiest forms of business to incorporate and manage in India. With an easy incorporation process and simple compliance formalities, LLP is preferred by Professionals, Micro and Small businesses that are family-owned or closely-held. The main advantage of a Limited Liability Partnership over a traditional partnership firm is that in LLP, one partner is not responsible or liable for another partner’s misconduct or negligence. An LLP also provides limited liability protection for the owners from the debts of the LLP. Therefore, all partners in an LLP enjoy a form of limited liability protection for each individual’s protection within the partnership, similar to that of the shareholders of a private limited company. However, unlike private limited company shareholder, the partners of an LLP have the right to manage the business directly.
An LLP is taxed at a flat rate of 30% alike a partnership firm.
LLP Agreement is an agreement executed by all partners after LLP incorporation in India. The agreement prescribes all the clauses related to business, including the rights, roles, duties, and responsibilities of partners in LLP. The agreement must be filed within 30 days of the issue of a certificate of incorporation.
Yes. You can change the registered office address of the LLP after shifting office from one place to another. Such change can be recorded by entering into a supplementary agreement.
● Filling of income tax.
● Filing of Annual return with MCA.
● Filing of form DIR-3 KYC for all partners with MCA.
● Filing of statement of accounts and solvency with MCA.
