LLP formation and its disadvantages

llp formation in kerala
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LLP formation in kerala, According to the Ministry of Corporate Affairs, Limited Liability Partnership (LLP) is an alternative corporate business form that offers the company the benefit of limited liability and partnership relief. Simply put, partners have a limited liability that their personal assets cannot be use to pay off the company’s debts. Moreover, one partner is not held responsible for the misconduct and neglect of the other partner. We focus on Procedures and measures with the necessary elements for inclusion of LLP formation in kerala. The directions are provided by the Limited Liability Partnership Act (LLP Act), 2008.

llp registration in Kerala

LLP formation in kerala it gave instant success with start-ups and business services. Limited Liability Partnership Registration, governed by the Limited Liability Partnership Act, 200, combines the benefits of a limited liability company partnership. The LLP formation in kerala was introduced to provide a business that is easy to maintain and helps owners provide limited liability.

Steps to form a LLP business:

Step 1: Certificate of Digital Signature (DSC)

Before starting the process, you must apply for the DSC of the designated partners of the proposed LLP. All the documents for LLP are file online and need to be digitally sign.

llp registration in kerala

Therefore, the designated partner must obtain their valid digital signature certificates from certified agencies recognized by the government. Here is a list of such certified agencies. The cost of getting a DSC varies depending on the certifying agency. Also, you should get DSC Class 3. If you go for a limited liability partnership company registration with , the plan covers 2 DINs and does not require a separate application for DINs.

Step 2: Director Identification Number (DIN)

You will need to apply for the DIN of all nominated partners or those who wish to be nominate as partners of the propose LLP.

The application form for allocations of DIN should be made in DIR-3. You must attest a scan copy of the document (usually the base and page) to the form. This form must be sign by the organization Secretary in full time employment of the organization or by the Managing Director / Director / CEO / CFO of the existing company in which the applicant will be appointed as a director.

Step 3: Name reserve

An LLP-Rune (Limited Liability Partnership-Reserved Unique Name) is file for the reservation of the name of the proposed LLP, which will be process by the Central Registration Centre under Non-STP. But before quoting the name in the form, it is suggest that you use the free name search feature on the MCA portal. The system will provide a list of close similarities to the names of existing companies / LLP registration in Kerala based on the filled search criteria.

registration of a Limited Liability partnership

Its help you to choose the name which is not already exist. If the Registrar approves the name when the name is desirable in the opinion of the Central Government and no existing partnership like a firm or LLP or corporate or trademark. Form RUN-LLP should be escort by a fee as per attachment ‘A’ which may be approved / rejected by the Registrar. Re-submission of the form will be allow within 15 days to rectify the defect. There is a provision to give two proposal names of LLP.

Step 4: Incorporate LLP

The form used for the investment is FiLLip (Form for Limited Liability Partnership) which will be registered with the Registrar who has the jurisdiction of the state in which the registered office fee of the LLP is located. The form will be a unified form.

Then Fees will be pay as per attach ‘A’.

This form also provides for application for DPIN allot, if the person to be appoint as a partner does not have DPIN or DIN.

The application allotted by two persons only.

Reservations can also be apply for through FiLLiP.

If the name applied for is valid, reserve name will be fill in as suggested name of LLP

LLP registration in Kerala

Step 5: File a limited liability partnership agreement

The LLP formation in kerala Agreement governs the mutual rights and duties between the partners and between the LLP and its partners.

The LLP agreement must be submit in the form online in the online form on the MCA portal.

Similarly,forms for LLP Agreement must be file within 30 days from the date of insertion.

The LLP agreement will have to be print on stamp paper. The value of stamp paper is different for each state.

Disadvantages of LLP formation in kerala

Like all business structures there will be disadvantages as well as advantages. The following are consider disadvantages in some cases.

  • Public advertising is the main disadvantage of LLP. Financial accounts must be submit to the Company House for public record. Accounts may disclose members’ income that they do not wish to disclose.
  • Personal incomes taxed accordingly. There may be tax benefits in registering as a company, but this will depend on your personal circumstances.
  • Profits cannot be maintain like a company limited by shares. This means that all earn profits are effectively distribute with no respite from capturing profits for future tax years.
  • The LLP must have at least two members. If a member chooses to leave the partnership, the LLP may have to be dissolved.
  • The residential address history was historically register at the Company House. While the use of ‘service addresses’ now allows home addresses to be kept out of public view, any address previously provide to Company House is still part of the public record unless you pay to suppress the records. This is not a problem for many businesses. However, there are some instances where this may not be desired. Consider lawyers and legal partners that their home address should not be so freely available if their work involves sensitive cases.
  • This is not a complete list but covers some of the key issues that some feel are detrimental to LLP.

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