A partnership which got itself registered under The Limited Liability Partnership Act, 2008 whereby partners intend to pursue an objective penned down in an agreement is known as an arrangement of Limited Liability Partnership. LLP is a form of body corporate and gives more brand recognition and increases value in the market when compared to the image of a partnership firm in the business field.
1. Status of body corporate: LLP is a body corporate which enjoys status of separate legal entity and perpetual succession meaning thereby partners of LLP are considered separate from LLP and partners may come and go but LLP will remains in existence.
2. Designated Partners and Partners: LLP shall have at least two designated partners who are individuals and at least one should be resident in India, Body corporates can also be members of LLP where nominee of such body corporates will be considered as designated partner.
3. LLP Agreement: All the mutual rights and liabilities of partners will be governed by LLP agreement including its objectives, duties, manner of induction and cessation, termination and other important clause.
4. Partner Status: Every Partner of LLP is agent of LLP for the purpose of carrying business of LLP
5. Liability: Partners are not held personally liable directly or indirectly solely for the reason of being partners, unless they have acted without authority and breached clauses of partnership by wrongful act.
1. Partners to have valid class two digital signature and DIN/DPIN.
2. Partners to prepare a LLP agreement to chalk out the management and working of LLP and to decide particulars to be included in agreement and file details for incorporation like registered office, profit sharing ratio etc.
3. Partnership Firm to apply for name in form RUN_LLP with Central Registration Centre, governed and controlled by MCA. After approval of name apply for incorporation or DIN (if do not have DIN) of LLP in Form FiLLiP. Alternatively, Firm can directly file form FiLLiP as it also gives option of name reservation in the form along with incorporation and DIN approval.
4. File E Form 3 for providing information of LLP agreement with the Central Registration Centre.
What is included in this
1. 2 Digital Signature Certificate (DSC)
2. 2 DIN
3. LLP Agreement
5. Assistance in opening of Bank Account
6. Certificate of Incorporation
8. Time to time legal updates
9. Follow-up with the MCA
1. Is LLP governed through Companies Act, 2013?
No, LLP is governed by LLP Act, 2008
2. Is LLP a separate legal entity?
Yes, it is.
3. How many partners are required to form a LLP?
Minimum two designated partners required
4. I want to convert my partnership form into LLP can I do so?
Yes, Section 55 of Chapter X and second schedule of LLP Act, 2008 mentions the provisions for conversion of firm into LLP. • All partners of the Firm to become partners of LLP and no else cannot be partner at the time of application. • Consent of all secured creditor is to be obtained prior to making application for conversion. • All applicable clearances, approvals and permissions for conversion of the firm into LLP For example if any firm is registered with any institutional body like Institute of Company Secretaries of India (ICSI) then it should seek approval from ICSI for such conversion.
5. Can one or more firms be converted into LLP?
Ministry of Corporate Affairs vide its circular dated 09/2013 clarified that Provisions for LLP Act,2008 specifies for conversion of Firm into LLP, it is not allowed to convert to or more firms into one LLP
6. What are the mandatory E form compliances for LLP?
|Form 8||Statement of Account & Solvency||Within 30 days from the end of six month of the Financial Year|
|Form 11||Annual Return||Within 60 days from the closure of the Financial Year|
7. What is difference between a Partnership Firm and a LLP?
|Particular||Limited Liability Partnership||Partnership Firm|
|Registration||LLP comes into existence only after registration||It is not necessary to register a partnership firm. Partners may or may not register their Firm|
|Act||LLP is governed by LLP Act, 2008||Partnership Firm is governed by Partnership Act, 1932|
|Perpetual Succession||It enjoys perpetual succession||Does not have perpetual succession|
|Status||Separate Legal Entity||No Separate Legal Entity|
|Designated Partner||Minimum two designated partners required||No concept of Designated Partner|
|Residency||One partner must be resident in India||No such requirement|
|Public interface||Documents can be available after payment of certain fees to the Ministry of corporate affairs||No such facility for partnership firm|
|Compliance||Various compliances are required including annual return, filing statement of asset and liability etc.||Comparatively less compliance|