LLP or Limited liability partnership: Everything Want Know

Limited liability partnership or LLP is a combination of both partnership as well as corporation. It has the feature of both such forms. As the name says it all partners have restricted liability in the company and it means that personal assets of the partners does not get used for paying off the company’s debts.  Certainly, one can easily do llp registration online if he or she wants to venture into this thing.

Anyhow, you know in the present time it has become quite popular form of business as many entrepreneurs are going for this. There are several partners in the firm and hence they are not accountable or responsible for others misbehaviour. Everyonestays liable for their own acts. All limited liability partnership gets governed under the limited liability partnership act of the year 2008. However, you should know that in India LLP got introduced in the April of year 2009.

This legal entity is separate from its owners. It can get into a contract and take up property in its name. LLP form is not simply prevailing in India. You can also find it in the countries such as the United Kingdom, Australia and more. If you want to venture into this area but don’t know about the perks you may get; here are some for you to get you started:

Formation is easy 

Forming an LLP is quite an easy process. It is not complex and time consuming such as the process of a company. The least amount of fees for joining an LLP is Rs 500 and the utmost amount that can be spent is 5600 rupees.

There remains Liability

The partners of the LLP possess limited liability and this means partners are not accountable to pay the company debts from their personal assets. No partner is going to be responsible for the misbehaviour or misconduct of any other partner.

Continuous succession

The entire life of the Limited Liability Partnership does not get affected by death, retirement or even bankruptcy of the partner. The LLP is going to get winded up only as per necessities of the act of 2008.

The overall taxation

Well , it is the advantage of LLP. Limited liability partnership is it stays exempted from different taxes such as dividend distribution tax and even minimum alternative tax. The rate of tax on this Limited Liability Partnership is going to be less than as compared to the entire company.

No obligatory audit needed 

Then you know every business has to appoint an auditor for evaluating the internal management of the company and its overall accounts. However, in the realm of LLP, there is no obligatory audit needed. The audit is needed only in the instances where the turnover of the company surpasses Rs 40 lakhs and even where the contribution beats Rs 25 lakhs.

Company management 

Then you know all types of the decisions and various management activities get seen and done by the directors of this company. Moreover, shareholders receive quite less power if you compare it to the board of directors.

Convenient transferability of ownership

Then there is going to be no restriction upon joining and even leaving the LLP. It is quite convenient to admit as a partner and to leave the entire firm or to easily transmission the ownership on others.

Conclusion 

To sum up, you can check out llp company registration cost if you incline to get into this type of business.