Limited Liability Partnership Firm can be formed in India by two of the Partners. There is no limit on the maximum number of partners in LLP. The Partners should have a DPIN (Designated Partner Identification Pin). The designated member of the Firm has some extra responsibilities on top of those of ordinary members. The filing and recording of the Limited Liability Partnership affairs should be monitored by the designated member and having the responsibility for non-filing of return and recording. LLP is a legal binding agreement between the partners who are in the business together, which describes how the partnership will be run and the rights and duties of the members themselves.
Partnership agreement or LLP is not compulsory but if made will help in case of disputes. A basic difference between an LLP and joint stock company lies in that internal governance structure of a company is regulated by statute whereas for an LLP, it would be by a contractual agreement between partners.
There is no limit on maximum number of Partners in LLP. The LLP can get the fund by raising the partners in Limited Liability Partnership Firm.
The company will pay dividend Distribution Tax when an owner withdraw a profit Company at the rate of 15% whereas DDT is not applicable to LLP.
The Liability of the Partner of the LLP is extending only to their share held In LLP. A partners misconduct or negligence is not affect the another partner in LLP.
There is no provision for regular meeting of member of LLP. However partners can decided when and how to meet or as may be laid down in LLP agreement.
For all those who have a liability to register themselves, if fails to do the same than under section 75A of the finance act 1994 penalty for the failure of an assessed to get himself registered was fixed at Rs. 500/- as a onetime payment but subsequently this section was deleted by the virtue of the finance act 2004 and now the general penalty that is applicable is Rs. 1000/- as per section 77 of Finance act.
Collection of Documents
Preparation of Application
Submission of Application
Certificate of PVT. Limited Registration