LLP FORMATION
The Limited Liability Partnership Act of 2008 established the idea of a “Limited Liability Partnership” (LLP) in India. India has now joined the group of nations that permit the formation of limited liability partnerships (LLPs), which offer the advantage of restricted liability with the fewest requirements. It combines the flexibility of a partnership firm with the benefits of a company into a single structure. This special hybrid model works well for small and medium-sized company establishments.
A minimum of two partners are needed to register an LLP; there isn’t a cap. The LLP agreement outlines each partner’s responsibilities and rights.
The following are the main characteristics of the LLP Act of 2008:
Any business that meets the Act’s conditions would be able to utilize them.
The partners’ liability is capped at their agreed-upon investment in the LLP because it is a “separate legal entity” that is liable for the entirety of its assets. Furthermore, individual partners are protected from joint liability resulting from another partner’s improper business decisions or misconduct because no partner is held accountable for the independent or unauthorized actions of other partners.
In contrast to its partners, who have perpetual succession, an LLP is a body corporate and a distinct legal entity. LLPs are exempt from the Indian Partnership Act of 1932, and unlike regular partnership firms, which have a maximum partner count of 20, LLPs have no upper restriction on the number of partners
What Assistance Can Popli and Associates Provide?
Regarding LLPs, Popli and Associates provides services ranging from LLP formation advice to RoC and tax return filing and assessment, which covers, among other things:
- Obtaining digital signature certificates, or DSCs, and registering them with the Registrar of Companies (RoC).
- Requesting a designated partners identification number, or DPIN.
- The proposed LLP’s name is reserved.
- Creation of the LLP contract.
- LLP’s quick incorporation and Certificate of Incorporation acquisition.