LLP was started in India under the “Limited Liability Partnership Act, 2008” which states that partners are not liable for other’s misconduct. LLP is preferred by “experts, Micro and Small businesses” that are family-owned or are closely-held.
Limited Liability partnership provides the advantage of limited liability to its partners and at the same time needs essential care. The partners of a private limited company have limited responsibility to creditors. In case of failure, banks/creditors can just sell the organization’s assets and not the individual assets of directors.
A must company, fulfill certain requirements, for it to be enlisted as an LLP Any company who has:
The Registrar of Companies (RoC) has issued specifying rules for LLPs. You should meet the standards or your application may wind up getting dismissed, prompting a much longer procedure..
The name of an LLP must be short and not excessively long. It must be easy to pronounce by other people. And it should get inked in the minds of people when they hear it the first time itself.
The name of your LLP Company should be connected to your business. It must suit the organization’s marking. For instance, Lilliput implies small, as “Lilliput” is a kid’s clothing brand..
The name of your company should not either be identical or the same as a current company, business, or trademark. You can go to “search.LegalRaasta.com” to confirm if your company’s name is similar or identical to others. You should stay away from plural variants e.g., “Amazons” or changing simply the letter Case, adding spacing, or punctuation marks in an already existing company’s name.
Abstracts, adjectives, and generic words are denied. So a name like “XYZ” will be rejected on the spot. The following words “bank, exchange, and stock exchange” will also be denied.
There should not be a certified trademark by the identical name on the “IP India” website. If there exists one, then also your chosen company name can be approved if you are able to obtain a “NOC” from its owner, which will authorize you to use the name.
The chosen name should be descriptive, meaning that the name itself should be able to tell about a number of traits of the LLP.
The name of your LLP Company must finish with the suffix “LLP” is an instance of a limited liability partnership.
While getting an LLP name to ensure that you don’t conflict against the law. It should not be abusive or against the traditions and convictions of any religion and should not harm anyone’s respect.
According to the “Limited liability Partnership Act, 2008”, it is compulsory to register for all the prescribed compliances on an annual basis. There is a provision for a penalty, in case of any failure in registering Form 8 and Form 11, for reporting of the LLP’s financial statements and annual returns. A fixed amount of Rs.100 per day, for each agreement that is not registered. No maximum limit is specified.
Every enrolled LLP is required to do Income tax return filing with Annual filing. This filing should be done before the 30th of September every year. After LLP registration, any LLP which fails to meet this deadline will be imposed with a penalty of Rs.5,000 and the filing must be done by 31st December of that year. If the LLP fails to reach this deadline, then the penalty amount will be double that is Rs.10,000.
It takes 15 to 30 working days (approx.) to complete the Limited Liability Partnership Registration method. The timeline may fluctuate depending upon reactions from the ROC department.
When a Limited Liability company enrollment is done, then the recently incorporated LLP is relied upon to get done with the following compliances. These compliances are one time in nature and are not repeated.
After the completion of the formation procedure, LLP is relied upon to comply with the yearly consistent necessities. If the number of transactions after the LLP registration is zero, then LLP will record NIL return.
The following returns are relied upon to be enlisted: