A Quick Idea About LLP

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llp gst registration

 There are different sorts of business concepts, formats and companies running in the industry. Have you ever heard about LLP? Well, LLP simply means Limited Liability Partnerships and these are commercial vehicles that mix up the features of partnership and company form of business .The format of Limited Liability Partnership (LLP) got introduced in India in the shape of Limited Liability Partnership Act, 2008 (it got notified on 31st March 2009).

Talking about llp gst registration, it is one thing and proper registration is another. Remember that the procedure of LLP registration is easy and effective when you made up your mind for this type of concept.  Remember that Limited Liability Partnership mixes the advantages of both the Partnership and company into a separate form of organization. In an LLP a partner is not really liable or responsible for the neglect or misconduct of the other partner. 

However, in an LLP, all the partners have restricted liability for every individual’s protection inside the partnership, similar to that of shareholders of any restricted company. However, different from the company shareholders, the partners share the right to control the business directly. An LLP even restricts the personal liability of one partner for the errors  , omissions, ineffectiveness, or carelessness of the LLP’s employees or other representatives.

A separate legal entity 

You need to remember that LLP is a separate legal entity and it means it is liable to the complete extent of its assets. It is crucial to know that the liability of the partners is definitely going to be restricted to their decided contribution in the LLP. Moreover, no partner is going to get liable on account of the un-authorized or independent actions of other types of partners. As an outcome of this, it permits the individual partners to be protected from joint liability created by the wrongful business decisions or misbehavior of the other partners.

Perks of LLP (limited liability partnership)

There are diverse perks of LLP and some of these are enlisted below:

  • It is easy to form it.
  • Separate legal entity
  • There is much flexibility without imposing complete legal and procedural needs
  • Constant existence regardless of changes in partners
  • It is an Internationally renowned sort of business in comparison to Company
  • There is no requirement of minimum capital contribution
  • No restrictions as to utmost number of partners
  • LLP & its partners are distinct from each other
  • Partners are not at all responsible for actions or moves of other partners.
  • The personal assets of the partners do not get exposed excluding if there is any sort of fraud.
  • Easy to dissolve or wrap-up
  • No requirement to upkeep statutory records excluding Books of Accounts
  • There is less cost of formation (in case you compare it to a company)

Indeed, these are a few of the various perks that might give you a boost to invest in this kind of business. You receive the profits but the accountability is limited. You would never turn out to be the victim of your partner’s misdeeds. The wrong doer is going to experience the consequences and not the other partners.

Conclusion 

to sum up,  you should register llp online before you start with your procedures. It is going to be a fulfilling business experience.

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