Recently, entrepreneurs have begun to use Limited Liability Partnerships (LLP) as an increasingly popular method of doing business. A company’s limited liability and the flexibility of a partnership can be combined at a very low cost of compliance with a company format. This new kind of corporate structure combines the flexibility of partnerships with the benefits of limited liability corporations. The Limited Liability Partnership was introduced in 2000 by the Partnerships Act of 2000. As such, LLP is an alternative business method, which provides members with both the benefits of a Limited Liability Company and the freedom to manage their internal affairs in the way they see fit.
This type of organization has limited liability. In addition, there is no responsibility for negligence or misconduct, or misconduct of one partner, whereas an LLP is more hassle-free to set up and maintain. Partner rights and duties are governed by LLP agreements between partners as well as partners and the LLP as a whole. Stamp Paper is used to printing the LLP Agreement. Stamp Paper varies from state to state in value. Following benefits can be achieved through the registration of an LLP with help of LLP registration consultants :
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You can have a large number of owners: Limited liability partnerships require only two partners. Unlike a private limited company, whose number of members is limited to 200, there is no such limitation on the number of LLP partners. An LLP needs to file only annual returns and a statement of accounts as well as the solvency report.
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Minimum capital investment is not required: LLPs can be formed with any minimum capital amount. Additionally, the contribution of a partner can take the form of tangible, movable, immovable, or intangible property or additional benefits to the limited liability partnership. In comparison with forming a private limited or a public limited company, the cost of incorporating a limited liability partnership is low
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Compulsory audits are not mandatory: It is mandatory for all companies, whether private or public, to have their accounts audited. For LLPs, accounts need to be audited every year except the ones with fewer than Rs. 40 lacs in revenue or Rs. 25 lacs in contributions per year.
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Less legal documents and procedures are required: Private limited companies typically have many compliances to comply with, while LLPs have just three per year. A private limited company, on the other hand, is required to conduct an annual audit of its books as well as comply with many compliances. During the contract drafting process, the partners may choose what rights and duties they wish to include.
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Procedure for winding up is quite fast: As well as being easier to start than a private limited company, an LLP is also simpler to wind up. Although it can still take two to three months to complete this process, it normally takes more than a year for a private limited company to close.
So, if you are looking forward to an LLP registration company, you are at the right place because we provide the best legal services when it comes to registering companies.
