LLP Registration in Chennai
FIRMDESK is keen to offer LLP company registration in Chennai. Lets see more about LLP
What is an LLP (limited liability partnership)?
A Limited Liability Partnership (LLP) is a hybrid business structure introduced in India under the Limited Liability Partnership Act, 2008. It combines the benefits of a partnership firm and a company, offering limited liability to its partners while retaining the operational flexibility of a partnership.
Key Features of LLP
Separate Legal Entity:
An LLP is a distinct legal entity, separate from its partners. It can own property, enter contracts, and be sued in its name.
Limited Liability:
The liability of each partner is limited to their agreed contribution to the LLP. Partners are not personally liable for the LLP’s debts or the misconduct of other partners.
Operational Flexibility:
LLP agreements govern the rights, duties, and profit-sharing ratios of partners, providing flexibility in management and operations.
No minimum capital requirement:
There is no mandatory requirement for minimum paid-up capital to start an LLP.
Taxation:
LLPs are taxed as a partnership firm, with no dividend distribution tax (DDT) or double taxation.
Perpetual Succession:
The LLP continues to exist regardless of changes in partnership, such as the death or retirement of a partner.
Fewer Compliances:
LLPs have simpler compliance requirements compared to private limited companies.
Key Components of an LLP
Partners:
A minimum of two partners are required to form an LLP.
There is no maximum limit on the number of partners.
At least one partner must be an Indian resident.
Designated Partners:
At least two designated partners are required, responsible for regulatory compliance.
They must obtain a Designated Partner Identification Number (DPIN) or Director Identification Number (DIN).
LLP Agreement:
A legally binding agreement that defines the roles, responsibilities, and profit-sharing arrangements among partners.
Advantages of LLP
Limited Liability:
Protects the personal assets of the partners from business liabilities.
Ease of Formation:
Setting up an LLP is straight forward with fewer formalities and no minimum capital requirement.
Flexible Management:
Unlike companies, LLPs do not need to adhere to rigid management structures.
Separate Legal Status:
The LLP can hold property and assets in its name, independent of the partners.
Tax Benefits:
LLPs are not subject to Dividend Distribution Tax (DDT), making them more tax-efficient for profit distribution.
No Cap on Partners:
LLPs can have an unlimited number of partners, making them suitable for large-scale businesses.
Reduced Compliance:
Compared to private limited companies, LLPs require fewer filings and regulatory compliance.
LLP vs. Private Limited Company
| Feature | LLP | Private Limited Company |
|---|---|---|
| Legal Entity | Separate legal entity | Separate legal entity |
| Liability | Limited | Limited |
| Compliance | Lower | Higher |
| Capital Requirement | No minimum capital | No minimum capital |
| Taxation | Taxed as a partnership firm | Corporate tax rates apply |
| Ownership Transfer | Complex | Easy via share transfer |
| Fundraising | Limited | Easier via equity investment |
Ideal for:
- Professionals, small and medium-sized businesses, and startups seeking limited liability and operational flexibility.
- Joint ventures and service-oriented businesses like consultancies, legal firms, and accounting practices.
LLP Registration Cost
Our Highlights
- Expert Guidance
- Efficient Processing
- Transparent Pricing
- Post-Registration Services