LLP registration in Kerala provides services at low compliances. Liability of the partners is limit and it is a hybrid between company and partnership. LLP is a body corporate, which was enact in the year 2008 through section 3 of Limited Liability Act. LLP is easy to form and it operates based on the agreements.
It has flexible capital structure. Even in the case of dissolvent it is easy to dissolve. LLP registration in Kerala says that every partner is an agent in LLP according to section 26 of the Act. Interestingly the LLP is an artificially legal person. It has been form on the basis of laws completely. At least one designated partner must be resident of India.
The LLP can be create for specific period of venture and it can be wind up. Also LLP can be merge with the other and there is no limit for the number of the partners. LLP is flexible form of business which provides service in the industries and which involves professionals.
Origin of LLP and its Process
LLP registration in Chennai, discusses about the origin of LLP. The idea of (LLP), was form in the year 1991 Texas in an unincorporate form which was introduce for fail savings and loan associations and was inspire by government litigation. In India 2009 the LLP bill receive an assent of the President and was put into force in the same year.
LLP does not need any minimum capital also the contribution can be made through instalments which is boon for all the entrepreneurs. Since there are many restrictions for the Directors and shareholders to take up loans so LLP was introduce to take away the levy from both the shareholders and Directors.
LLP registration in Chennai says what are all the documents need for LLP registration. For the foreign nationals, Aadhar card, driving license, photocopy of bank statement and scanned passport size photograph. These must be produce by the partners.
Secondly, they should self-attest these copies and submit. It follows steps like, it requires DSC, DIN, Name approve and that is follow by the processing of application, incorporation form filing, Incorporation and LLP agreement filling. Usually they say the TAT (ie) turn-around time is 15 to 20 days. It is a legal process and cannot fix a specific time to get registration.
Conversion of Public and Private into LLP
LLP registration in Hyderabad speaks about the conversions. The public limited company is being convert into LLP based upon the tax front. An LLP is not like a company is not liable to pay MAT or DDT. MAT is minimum alternate tax, DDT is dividend distribution tax. All movable and immovable property are vest in LLP and hence there is no stamp duty is in need to be pay. Similarly the private company can also be convert into LLP. The main thing is the shareholding pattern should be the same when they get introduce into the LLP as contributors.
LLP registration in Bangalore says that the private limited company has to comply with pending compliances. All the tax returns should be in completed form not in pending form. There should not be any secure creditors during conversion. Else you have to obtain NOC from your creditors. For example the bank which had given loan may provide NOC. The most important aspect is, the private limited company has FDI (Foreign Direct Investment).
Rules and Regulations
When the private limited company decides to get convert into LLP, it has to get approve through FIPB (Foreign Investment Promotion Board). It is a time consuming process but still it is important LLP and FDI has limitations and there is no simple route for the conversion.
LLP registration in Bangalore insists that the FDI attracts foreign investors and this step is most vital thing to be follow. The profit sharing among the shareholders should be the same. The Government has ordered not to pay the partners out of the accumulated reserves for the next three years from the conversion. Certainly they need a tax expert for doing the job.
Demerits of LLP
LLP registration in Coimbatore says that LLP has some disadvantages as well. It does not encourage funding. Like start-ups the funding is encourage from Angel investor and Venture capital, because the ownership in LLP is described as interest and not as shares. Another disadvantage is the LLP cannot be convert into private limited company.
Even though it is a hybrid of partners and company it is always look as partnership only and it loses its trust among the people. LLP registration in Coimbatore says that if you are likely to convert into LLP from private, you will not be able to issue ESOP. ESOP is Employee Stock Ownership Plan; since LLP has no idea of having the method called ‘share’ and it cannot issue ESOP to the employees. Starting business is a tedious process and it must be chose according to the merits and demerits.
Recent updates on LLP
LLP registration in Kerala says that Income Tax Appellate Tribunal told that conversion into LLP is cover by definition of ‘transfer’ and it is liable to capital gain tax. Another impact on this tribunal is any tax escape from the hands of the company will be levy on to the LLP and this will be difficult for most of the LLPs.
Finally it state that, Income tax appellate tribunal’s ruling celerity power partly takes away the protect that companies enjoyed. This was introduce in the year 2018. In 2020 now recently the Government has to bring settlement scheme for the LLP. It has said that if the LLP has the wish to avail the service they may apply for the settlement scheme.
Additonally to it is applicable for submission for four types of forms like Form 3, Form 4, Form 8 and Form 11. LLP registration in Kerala educates you about the recent updates about LLP and helps you in getting LLP registered.