We are in an age where more and more startups are evolving and expanding. As more people are taking up entrepreneurship roles, the present rigid structure of the companies might become too much for them to manage. Due to this growing demand, there is a need for a more flexible structure where companies can thrive properly.
Limited Liability Partnership companies are a great combination of private companies and Partnership firms. Their business structure is a derivative of the benefits of the Private and the Partnership companies and is much suitable when it comes to the ease of business doing. The LLPs serve as an alternative business entity and function by mutual agreement between the partners. However, any single partner cannot be held accountable for the poor conduct or negligence of the other partners.
Limited Liability companies provide more protection to the partners and there is no liability on them. These firms make the partners immune from facing any personal liability in cases of debts, misconduct, or any wrongful acts, and the owners are held liable only up to their investments.
The formation of a Limited Liability Partnership firm, the following requirements help:-
Limited Liability firms are indeed life saviors if you are willing to get into an agreement-based business. Filing Lounge is an excellent portal. if you are want regular update, follow our Facebook page for more information on different kinds of businesses.
LLPs are famous in countries like the United Kingdom, United States of America, Australia, Singapore, and Gulf nations.
Yes, LLPs are more flexible and have lesser requirements than joint stock companies. Also, the LLPs are managed and governed by the partnership agreement among the partners while joint companies are regulated by the Companies Act, 1956.
Yes, people of foeign origin including foreign nationals or companies can form an LLP in India on one condition that one of the partners should be an Indian National.
If by any means, the minimum number of partners falls below two,and the business still continues for further six months, ten the single person or the owner shall be held accountable for any obligations.
Annual returns must be filed dby LLPs in Form 11 with the Registrar of companies(ROC) within 60 days of the closure of a financial year. The returns will be available for public inspection only after deposition of the specified fee with the ROC.
Any existing partner can cease to continue with the firm by giving a prior notice to the ROC before 30 days. However, the person can cease to discontinue hs partnership in the following cases-
Yes, definitely. By complying with the provisions of Clause 58 and Schedule III and IV of the LLP Act, an existing company may be converted to an LLP. Also, Form 18 and Form 2 need to be filled up too.
LLP firms have to add the suffix “Limited Liability Partnership”