An LLP or Limited Liability Partnership is a business constitution that offers additional benefits compare to a partnership pay firm. It offers its partners limited liability at very negligible compliance costs. In addition, pay firm partners can configure their internal structure like a partnership pay firm. In short, an LLP is a separate legal entity of its member with the power to extend all its assets by limiting the liabilities of the partners. Therefore, limited liability partnership is a hybrid of a company and partnership.
Limited Liability Partnership Incorporation in kerala is a hybrid of existing partnership payments and full development companies. It is a separate legal entity, responsible for the full extent of its assets, limit to their agree contribution to the partners’ payability.
Limited Liability Partnership Registration (LLP) Features:
Only two entrepreneurs are need
More reliability than partnership pay.
Limited liability is the main feature.
The next version of partnership pays in simple terms.
Procedure
Approve your business name
For Limited Liability Partnership Incorporation in Kerala there should be one or two suggest names to provide to the MCA. Naming Guidelines, subject to MCA processing time and availability, naming will be approve in 2 to 5 working days.
Application for DPIN and DSC
Obtaining a DSC (Digital Signature Certificate) is the first step for your company partner in Limited Liability Partnership Incorporation in Kerala. You can get DPIN and DSC for all partners in a few working days. In case, if the partners have DPIN and DSC, then you can go to the next step.
LLP agreement
The LLP agreement is important in an Limited Liability Partnership Incorporation in Kerala because it determines the duties and mutual rights between the LLP and the partner as well as the partners. Partners are part of the creation of the LLP Agreement during LLP registration and this must be done by completing Form 3 available on the MCA Portal. The process must be follow within 30 days of starting your business.
Certification of LLP registration
Once the registrar approves your entry form, you will be able to register an LLP. Now you need to get the LLP include certificate. You need to make sure that you submit all the required documents to the registrar. The deadline for obtaining an LLP inclusion certificate is between two and twelve days.
Apply for bank account, TAN and PAN
Once you get the investment certificate you need to apply for company TAN and PAN with NSDL. With these documents you can open a current account to start your business. LLP registration, you can do it around three weeks.
Advantages of LLP
Limited liability:
The first and foremost benefit of trading / trading through an LLP is the limited liability give to the partners. As a sole trader or partnership business, the personal property of the owner or partners may be at risk in the event of a business failure, but this is not the case for LLPs. Tragic events such as business failure are not always under the control of the entrepreneur; It is therefore important to protect the personal property of the businessman in case of emergency
Unlike ownership and partnership, if an LLP becomes insoluble and injured, only the assets of the LLP are used to clear its debt. LLP’s partners have no personal responsibilities and have not gone bankrupt and are operating as a trusted entrepreneur.
No audit requirements:
Capital debt is not require unless the capital is Rs. 25 lakh or turnover of Rs. 60 lakhs.
Legal entity / status or recognition:
A LLP registration in Kerala is a legal entity, a judicial person established under the law. Its own existence is different from that of its partners. The position of a corporate entity enables the LLP to be take more seriously than the position of ownership / partnership.
Working as a corporate entity or Limited Liability Partnership gives suppliers and consumers a sense of confidence in the business. Larger organizations in particular will prefer to deal with corporate companies rather than ownership / partnership organizations.
Taxes:
Limited Liability Partnership Incorporation in Trivandrum are taxed like normal partnership payments. LLP pays an effective tax of 30.9%. He is exempted from 10% surcharge. LLPS is lower than companies that pay taxes on profits. Pays 33.9999% tax.
Only 10% or 40% of the LLP’s income will be taxed, as PA will be allowed to pay 90% or 60% of the outstanding amount to the partners as a partnership. This means that partners have to pay tax on the amount paid to them. Therefore, there will be no double taxation of income.
Unlike private or public companies, there is no requirement for dividend distribution / payment of corporation tax on income / profit distribution among partners.
Other important advantages:
There are many merits for the Limited Liability Partnership Incorporation in Trivandrum. They are:
Low cost of design and compliance.
Less legal compliance compared to private limited companies
Less requirements for maintenance of statutory records
Worldwide business name and accepted form
No minimum capital contribution is require
There is no limit as to the maximum number of partners
Body corporate can be a partner of corporate LLP
Less government interference
Easy to melt or wind-up
Conclusion
Limited Liability Partnership Incorporation in Trivandrum registration is an alternative corporate business form that offers the benefit of limited liability of the company and relief of partners. LLP can continue its existence regardless of the change in partners. He is able to enter into a contract and keep the property in his own name. The LLP firm is a separate legal entity, responsible for the full extent of its assets but the liability of the partners is limit to their agree contribution to the LLP. Further, no partner is responsible for the individual or unauthorize actions of the other partners, thus protecting the individual partners from the joint liability created by the wrongful business decisions or misconduct of the other partner.