A LLP is an evolved version of a traditional partnership firm where the business is given a corporate suit and unlike the traditional partnership firm the liability each partner is restricted to the amount to contribution as promised by him in the LLP agreement. A LLP is governed by the provisions of Limited Liability Partnership Act, 2008. Its enjoys the privilege of a legal individual corporate entity like perpetual succession, own properties on its own name, capacity to sue and be sued, etc.
Who can Form?
2 or more major individuals.
NO MINIMUM CAPITAL REQUIRED
- Passport size photographs.
- ID Proof : Adhar Card / Driving License / Voter ID Card / Passport.
- Address Proof : Bank Statement / Electricity Bill/ Telephone Bill.
- Electricity Bill of the proposed Registered Office.
- Rent Deed/ Lease Deed / NOC of Owner of the Registered Office premises.
- Pancard and ID proofs are to be submitted with Bankers attestation as well as a self attested.
- Corporate Personality
- Limited Liability
- Perpetual Succession
- Separate Property
- Capacity to sue
- Preferred by Investors for findings
- Preferred by banks for loan considerations
- No Restriction on maximum Number of members.
8 -15 Days
- 2 DSC
- Name Approval.
- Drafting of LLP Agreement and other documents.
- Govt Fee and Stamp Duty
- Certificate of Incorporation
Caparison between Partnership, LLP & Company
|Governing Act||Partnership is governed by ‘The Indian Partnership Act, 1932’ and various Rules made there under.||Limited Liability Partnership are governed by ‘The Limited Liability Partnership Act, 2008’ and various Rules made there under.||Companies are governed by ‘Companies Act, 2013’.|
|Registration of Business||Registration with Registrar of Firms is optional.||Registration with Registrar of LLPs required.||Registration with Registrar of Companies required.|
|Funding||Cannot raise capital from VCs and PE firms.||Cannot raise capital from VCs and PE firms.||Can raise capital from VCs and PE firms. Further the Public Limited companies can also raise funds from people.|
|Perpetual Succession||It does not have perpetual succession as this depends upon the will of partners.||It has perpetual succession and partners may come and go.||It has perpetual succession and members may come. and go|
|Number of Members||Minimum 2 and Maximum 20.||Minimum 2 partners and there is no limitation of maximum number of partners.||2 to 200 members in case of Private Company and Minimum 7 members in case of Public Company.|
|Liability of Partners/Members||Unlimited. Partners are severally and jointly liable for actions of other partners and the firm and liability extend to their personal assets.||Limited, to the extent their contribution towards LLP, except in case of intentional fraud or wrongful act of omission or commission by the partner.||Generally limited to the amount required to be paid up on each share.|
|Tax Liability||Income of Partnership is taxed at a Flat rate of 30% plus education cess as applicable.||Income of LLP is taxed at a Flat rate of 30% plus education cess as applicable.||Income of Company is Taxed at a Flat rate of 30% Plus surcharge as applicable.|
|Dissolution||By agreement, mutual consent, insolvency, certain contingencies, and by court order.||Voluntary or by order of National Company Law Tribunal.||Voluntary or by order of National Company Law Tribunal|
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