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Limited Liability Partnership Firm

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.

Advantages

Unlimited 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.

DDT Not Applicable

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.

Limited Liability

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.

No Meeting

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.

SERVICE TAX STATUTORY OBLIGATIONS

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.

Documents required

  • 1

    Documents for Company

    • PAN
    • Rental Agreement
    • Bank Statement
    • EB receipt
    • Resolution Copy in case of Company
  • 2

    Documents for Owners

    • PAN
    • Voter ID / Passport/ Driving License / Aadhar Number
    • Photo – 2 Nos
    • ATTESTATION
    • Documents to be attested
  • 3

    REGISTRATION

    • ST-2 will be issued by the department.

Business Plan

Basic

Rs.7,499/-

  • Two DIN
  • Two DSC
  • Name Approval
  • Company Incorpration
  • PAN

Standard

Rs.8,799/-

    • Two DIN
    • Two DSC
    • Name Approval
    • Company Incorpration with
    • GST Registration

Advanced

Rs.11,299/-

  • Two DIN
  • Two DSC
  • Name Approval
  • Company Incorpration with
  • GST Registration & IEC Registration

HOW LONG DOES IT TAKES?

1 DAY

Collection of Documents

1 DAY

Preparation of Application

1 DAY

Submission of Application

1 DAY

Certificate of PVT. Limited Registration

Frequently Asked Questions

Who is liable to pay service tax on distribution commission from April 1, 2016?
Distribution commission on sale of Mutual Fund has been brought under forward charge mechanism with effect from 1st April 2016, and the liability to pay service tax has been cast upon the distributor.
Can a distributor avail the benefit of small scale service provider and what is the limit?
Yes, distributor may avail the benefit of small scale service provider exemption up to Rs.10 Lac on gross taxable service subject to fulfillment of prescribed conditions.
Does a distributor required to provide self declaration certificate to AMC/MF if he/she is availing benefit of small scale service provider?
No, the distributor is not required to submit a self declaration to Reliance Mutual Fund. However, he/she must maintain requisite records as provided by the law.
How to compute the threshold of Rs.10 Lac for the benefit of small scale provider?
The threshold for the benefit of small scale service provider should be computed by including all taxable services provided by the distributor. (Including but not restricted to distribution commission from sale of MF, distribution commission from sale of Insurance policy, advisory fee and any other professional fee etc.)
Is distributor required to issue invoice under forward charge mechanism?
Yes, it is mandatory for every person who is providing taxable service to issue invoice as per Rule 4A of Service tax Rules (STR) 1994.
Whether invoice needs to be signed manually or digitally?
Invoice can be signed manually as well as digitally either by service provider or person authorized by the service provider. For digital signature, a Distributor is required to obtain valid digital signature certificate.

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