In a broader sense, LLP is a blend of the corporate body and partnership structure where the one partner is not liable to the action taken by the other. Moreover, Limited Liability Partnership (LLP) can participate in a contract and the rights and duties of the partners are governed through a legal entity. GST Registration is also essential for LLP and the partners have to submit the documents related to registration. In this article, we will discuss Frequently Asked Questions on LLP- Limited Liability Partnership in India.
Frequently Asked Questions on LLP
Several queries might come into your mind related to LLP. So let’s see some of the Frequently Asked Questions on Limited Liability Partnership that can solve your queries.
How does LLP differ from Traditional Partnership and Company?
LLP has a corporate structure and the operations are performed via an agreement between the partners. Here, the partners have flexibility in their action whereas, in a traditional partnership firm, the partners are jointly responsible for any consequences.
IS FDI eligible for LLP?
Foreign Direct Investment is good for the country’s economy because it increases productivity and thus generates employment. Yes, FDI is eligible for LLP under sectoral cap regulations but they are restricted to agricultural, real-estate, and print-media businesses. GST Registration rule is also applicable for LLP as they have to go for GST Return Filing. Moreover, the individuals of Pakistan and Bangladesh are prohibited from LLP.
What are the ways of FDI Investment in LLP?
The investors can invest in LLP via capital contribution or profit shares and the price should not be less than market value.
What is DIN?
DIN refers to the Directors Identification Number that is issued by the Ministry of Corporate Affairs, Government of India. This is a unique number offered to Designated Partners or Directors of a Company.
What are the essential documents required for LLP Registration?
One who is willing for LLP Registration must have to fill Form 8 and Form 11. Whereas Form 11 should be filed within 60 days before the end of the financial year that is an annual return for LLP. And, Form 8 should be filed within 30 days from the end of 6 months of the financial year.
What are the essential documents required for GST Registration of LLP?
LLP is a business and for any business, GST return filing is mandatory. So, GST Registration is a must and for the same, few documents are required and they are listed below.
- Partners photographs
- PAN Cards and Aadhar Card of partners
- Business Address and LLP Registration Certificate.
- Bank Details of Partners
Are there any provisions for the conversion of a company to LLP?
Yes, the private limited company and an unlisted company can become an LLP but the same should not have any security interest in the assets. Moreover, if the converted company had any previous agreement or contract, then it will remain active and its effect will be the same in LLP just like in the previous one.
Who can be a partner in LLP?
Any individual who is financially strong and willing to start a business can join LLP. Moreover, A body Corporate is also eligible for LLP and they are mostly the registered ones under LLP Act. But some exceptions are also present and they are society and corporation sales, which means these bodies can’t become a partner in LLP.
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