LLP Consultancy

Limited Liability Partnerships (LLP)Consulting Services

The Limited Liability Partnership (LLP) is an incorporated business organization, which possesses elements of both a Partnership Firm and a Limited Company. In limited liability partnership, some of its partners have limited liability like shareholders to a corporation. However, in some countries, there is at least one partner with unlimited liability. Again, the designated partners to LLP have the right to manage their internal and external business affairs directly, in accordance with the LLP Agreement. Its every partner has its own responsibilities and liabilities, and one is not responsible or liable for any misconduct, negligence, or delinquency of other partners to LLP.

DIFFERENCE BETWEEN LLP, COMPANY AND PARTNERSHIP

  Company Parnership Firm LLP
REGISTRATION Compulsory registration required with the ROC. Certificate of Incorporation is conclusive evidence. Not compulsory. Unregistered Partnership Firm will not have the ability to sue. Compulsory registration required with the ROC
NAME Name of a public company to end with the word “limited” and a private company with the words “private limited” No guidelines. Name to end with “LLP”” Limited Liability Partnership”
CAPITAL CONTRIBUTION Private company should have a minimum paid up capital of Rs. 1 lakh and Rs.5 lakhs for a public company Not specified Not specified
LEGAL ENTITY STATUS is a separate legal entity Not a separate legal entity is a separate legal entity
LIABILITY Limited to the extent of unpaid capital. Unlimited, can extend to the personal assets of the partners Limited to the extent of the contribution to the LLP.
NO. OF SHAREHOLDERS / PARTNERS Minimum of 2. In a private company, maximum of 50 shareholders 2-20 partners Minimum of 2. No Maximum
FOREIGN NATIONAL AS SHAREHOLDER / PARTNER Foreign nationals can be shareholders Foreign nationals can not form partnership Foreign nationals can be partners
TAXABILITY The income is taxed at 30% + surcharges+cess The income is taxed at 30% + surcharges+cess Not yet notified
MEETINGS Quarterly Board of Directors meeting, annual sharholding meeting is mandatory Not Required Not Required
ANNUAL RETURN Annual Accounts and Annual Return to Filed with ROC No Returns to be filed with Registrar of Firms Annual statement of accounts and solvency & Annual Return has to be filed with ROC
AUDIT Compulsory, irrespective of share capital and turnover Compulsory Required, if the contribution is above Rs. 25 lakhs or if annual turnover is above Rs. 40 lakhs
HOW DO THE BANKERS VIEW High credtiworthiness, due to stringent compliances and disclosures required Credtiworthiness depends on goodwill and credit worthiness of the partners Perception is higher compared to that of a partnership but lesser than a company
DISSOLUTION Very procedural. Voluntary of by order of National Company Law Tribunal By agreement of the partners, insolvency or by Court Order Less procedural compared to company. Voluntary of by order of National Company Law Tribunal
WHISTLE BLOWING No such provision No such provision Protection provided to employees and patners who provide useful information during the investigation process