Frequently Asked Questions ?
Q. Why to go for limited liability partnership?
1. Least intervention of compliances in comparison to private limited.
2. Easily control by pre decided clause in Partnership Agreement.
3. No minimum capital bar to start the Limited Liability Partnership.
4. Easy and low cost required for registering a Limited Liability Partnership in India.
Q. What is Limited Liability Partnership?
Limited Liability Partnership is mixture of corporate structure and partnership firm. It is best for people who need flexibility in their own moves of business. As name suggest, here the liability of partners can be limited to their agreed contribution in the LLP agreement.LLP is a hybrid between a company and a partnership.
Q. How much time will it take to register a limited liability partnership in India?
It normally takes 30-35 working days after submission of all requisite documents. But sometimes it may vary to around a month and a half also which depends of state of registration, as each state has its own Registrar of Companies(ROC) to register LLP.
Q. What is minimum capital required for limited liability partnership?
A. There is no bar on minimum capital requirement on LLP. The same can be mutually decided by partners in their LLP agreement in their own decided ratio.
Q. What are the annual and periodic compliances for Limited Liability Partnership in India?
A. There are following
that LLP has to comply with:
1. Every LLP has to file an
in form 11 within 60 days of closing of every financial year to ROC.
2. LLP, whose turnover exceed, in any financial year, forty lakh rupees, or whose contribution exceed twenty five lakh rupees, is required to get its accounts audited.