LLP stands for Limited Liability Partnership and is a business entity that gives you the benefit of limited liability. A partner in an LLP is limited to his or her own personal liability. An LLP company has to comply with the rules and regulations set by the government in order to operate. You can find out the rules that you need to follow in order to register an LLP in Bangalore.
Limited liability of LLP partners
LLP is a business entity that provides limited liability protection to its partners. The liability of its members is limited to their contribution to the company. This is why the partners are not liable for each other's debt or misconduct. However, the partners are liable for their own debt. The LLP also has the ability to issue legal notices in its own name.
In order to register an LLP in Bangalore, you need to apply for a Director Identification Number (DIN). This is a unique number issued by the Ministry of Corporate Affairs. You will also need to obtain a Digital Signature Certificate (DSC).
LLPs have different legal capacities and they can enter into contracts. They are also permitted to acquire properties in their own names. However, FDI is not allowed in real estate businesses and agricultural/plantation activities.
Steps to register an LLP in Bangalore
LLP is a business structure that combines the advantages of the partnership firm and the limited company. The LLP is governed under the Limited Liability Partnership Act, 2008. In the LLP, the liability of partners is limited to the contribution that they make to the firm. The LLP offers various benefits including a reduced cost of compliance, less capital requirements, flexibility of a partnership firm, and many other features.
In order to register an LLP in Bangalore, a minimum of two partners are required. All partners must submit a PAN card. Also, a digital signature certificate is required for designated partners. The digital signature certificate is issued by a government-recognized certifying agency. The cost of the digital signature certificate varies from certifying agency to certifying agency.
Choosing a descriptive name for your LLP
Choosing a descriptive name for your LLP company in Bangalore is an important step. Keeping this in mind, the Registrar of Companies (ROC) has formulated guidelines for naming your LLP.
The ROC/ MCA has set the bar high, and aspiring entrepreneurs must do their homework before they hit the "save" button. There are many pitfalls to avoid.
For example, the ROC (now central ROC) will not approve a name that is too similar to an existing company or existing any Trade Marks. This is because the registrar will look at how the proposed name is related to the activities and operations of the company.
Another reason to choose a descriptive name for your LLP company is that it will help you attract consumers to your business. Your LLP name should be descriptive of your business, and also help you to relate with your industry.
Transferring your LLP to another person by inducting them as a Partner
LLP is a legal entity that combines the advantages of a partnership and a corporation. It is a hybrid legal structure that offers liability protection to its members. LLPs are commonly used in professional firms.
LLPs are a great choice for a small business because it offers limited liability to its owners. The partners of an LLP are not liable for the debts and malpractice of other partners. In most cases, LLPs are managed by a group of professional businessmen.
Limited Liability Partnerships (LLP) can be registered in a few short steps. First, you need to prepare a partnership agreement. The agreement will define the responsibilities of the LLP and its partners. You can either file the agreement with the state or use online legal services.
Yearly file LLP Form 8 and 11
LLPs must submit annual forms on a regular basis to avoid heavy penalties. Failure to file annual forms is a serious offense and may lead to the strike off of the LLP. The Government keeps records of LLPs and their activities. Failure to file annual forms is considered to be a fraudulent act.
If an LLP is not carrying out commercial activities, it is required to indicate in Form 8 and Form 11 whether it is non-operational or not. If it is not operational, the LLP must remain non-operational for at least a year.
For LLPs with annual revenue of more than Rs 40 lakhs, it is mandatory to submit an audited financial statement. The audited statement must be approved by an auditor. The firm shall also have to submit prescribed fees. If it fails to do so, it shall be liable to a penalty of Rs 10 per day. The penalty increases over time.
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