LLP and Partnership registration
LLP refers to a limited liability partnership which is specified in the limited liability act of 2007. It offers limited liability protection for people doing business. It provides a form of business entity while providing limited liability to the owners. An advantage that the limited liability has over regular partnership is that one partner is not responsible for the misconduct of another.
LLP are the easiest to incorporate and manage mainly because of their simple compliance facilities and easy process of incorporation. It combines the advantages of a company and partnership into a single organization. Unlike shareholders, a partner has a right to manage the business directly.
Process
One needs to apply for the partner’s DIN and DSC. Once that is complete, you need to apply for name availability of the proposed LLP. Once the documents have been verified, the incorporation documents and forms are filed, and a certificate of incorporation is processed. One then drafts and files an LLP Agreement. You do not have to worry about handling all these requirements. At JNJ Experts, we ensure that your LLP and Partnership Registration is done with ease since we have all the necessary resources to have the registrations certificates faster and seamlessly.
Let us take a look at the advantages of LLP
Advantages of an LLP
It is a different legal entity and is recognized by the law. It can, therefore, own property and even trade and incur debts.
It is easy to add someone as a partner which nominates them as a co-owner of the LLP. Since it is a separate legal entity, by changing partners, ownership also changes.
An LLP can acquire, own and even sell the property. This is because it is recognized as a person by the law.
LLP’s are not required to be audited if they have returns of low turnovers and low capital contribution. They are therefore efficient for start-ups which are starting their operations and need minimal regulation formalities.
Flexible to manage. The partners have the liberty to choose how they want to run the LLP.
LLP’s also enjoy lower tax rates than companies. They are also not subject to dividend distribution tax, so one will not be taxed as you distribute profit to the partners.
Since a Limited Liability Partnership is a regulated entity unlike proprietorships, it can attract financing from investors and financial institutions.
An LLP has added protection for the partners. This is mainly because it is considered as a legal entity and the partners and the business are seen as separate entities. Should the LLP experience a lawsuit, the partners are not liable, and their property is safe.
Limited Liability Partnerships work well with professionals and close family members as well as small businesses. This is because they are considered a legal entity by the government and can own property, trade and even incur debts. Since they are easy to incorporate and the partners’ property is not liable should there be a lawsuit, they can offer protection when one of the partners is involved in misconduct. Since they do not have equity shares, they have to find other ways of raising capital during its life cycle. An LLP will remain in existence until the partners agree to dissolve it.
Contact us, JNP Experts, and we will help you register your business in the shortest time possible without you ever worrying about the process.