Law Firms in India – Right Place for LLP Registration and NBFC Registration
As the name suggests, in a limited liability partnership all the partners have limited liability which means that every partner is liable for its own actions and not for the acts of others. Unlike a Partnership firm, in a LLP if any negligence or misconduct is caused on the part of ant partner, all others will be excluded from the liability arising out of such misconduct or negligence and the negligent partner alone will be liable. In a limited liability partnership, partners have a direct say in the business i.e. they can manage the business directly. A LLP is governed by the Limited Liability Partnership Act 2008. One more distinguishing feature of LLP is that a separate legal entity which can sue and be sued in its own name.
Features of LLP:
1) As already stated in a LLP, all the partners are liable for their own acts and not for the negligence and misconduct of others.
2) A LLP is a legal entity which is separate from its partners and can sue and be sued in its own name.
3) For constituting a LLP, it should have minimum two partners and there is no fixed limit for maximum no. of partners.
4) The rights and duties of the Partners will be fixed as agreed upon by them in the agreement. The partners have a choice to devise the agreement according to their own convenience.
5) Liability of partners is limited to their share in the LLP and except in the cases of fraud; it cannot be extended up to their personal assets.
6) LLP should maintain annual accounts and if the contribution exceeds Rs. 25 lakhs or the annual turnover exceeds Rs 40 lakhs.
7) It should be a “for profit business”.
A LLP is a business which is not only easy to run and manage but is also east to wind up and dissolve. And because of comparatively lower cost of formation, lesser compliance requirements, a LLP is rather an advantageous form of partnership. The only restriction to LLP is that it cannot raise money from public.
Incorporation of LLP:
1) First thing to be decided upon is about the partners and designated partners i.e. who all will be designated partners and who will be the partners in a LLP.
2) Then a Designated partner identification number and a digital certificate signature is to be obtained.
3) Then the name of the LLP is to be decided and it is to be checked whether it’s available. It can be checked on the official website of ministry of corporate affairs.
4) Then comes the drafting of LLP agreement on such terms and conditions as may be agreed upon by the partners.
5) After drafting the LLP agreement. The partners can file the agreement along with incorporation documents and obtain certificate of incorporation from ministry of corporate affairs.
It is compulsory for a LLP to be registered with the ROC. The name of the public company should end with the word Limited liability partnership or LLP.
Find affordable llp registration services with law firms in india, also get nbfc registration and go with company registration india for company registration and other benefits.
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