presentation flow: salient features of llp advantages of forming llp steps to form llp general...
TRANSCRIPT
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Presentation Flow:
Salient Features of LLP
Advantages of forming LLP
Steps to form LLP
General Points to be covered in LLP agreement
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SALIENT
FEATURES
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A separate legal entity
No liability of partner on account of independent or un-authorized actions of other partners
No element of agency involved
Liability of partner restricted to contribution made
LLP a body having a perpetual succession
Minimum 2 partners required to form LLP
No limit for maximum number of partners
Foreign entities can also form LLP
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Atleast TWO designated partners required for compliance under LLP Act
In LLP formation atleast ONE designated partner should be a resident of India
Taxation: Similar to partnership firms - Maximum Marginal rate of 30%
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ADVANTAGES
OF
LLP
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Vis-à-vis COMPANY:Cost of formation is lesser than a companyLesser compliance level compared to companyNo Minimum Alternate Tax (MAT)No Dividend Distribution Tax (DDT)
Vis-à-vis PARTNERSHIP:Better credentials in the eyes of Financial Institutions / BanksCan be formed by multi-disciplinary professionals
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FORMATION
OF
LLP
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Digital Signature Certificate (DSC) for the designated partners
Application in Form - 7 for DPIN (Designated Partner’s Identification Number)
Verification of name availability on the website of LLP Application for Name Approval in Form -1 Payment of fees for formation of LLP which is based on the
contribution of partners
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Form – 2 to be submitted after it is digitally signed by designated partner along with the Advocate / Chartered Accountant / Company Secretary / Cost Accountant
Completion of formation procedures within THREE months of date of name approval
Filing of Agreement in Form – 3 and Notice of appointment of partner in Form – 4 along with the Form – 2 or within 30 days from date of incorporation
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GENERAL POINTS
IN LLP
AGREEMENT
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Name & Address of LLP Nature of Business to be carried on Nature of partnership, whether AT WILL or for a specific
period Form & manner of contribution between parties Name of designated partners Profit & Loss sharing ratio Powers and Duties of Designated Partners
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Rights of the partner Duties of the Partner Mutual Rights of the Partner Mutual Rights & Limitations of LLP Management & Administration of LLP Admission & Cessation of partners Amount of contribution to be introduced by the incoming
partner and it’s impact on profit sharing ratio Remuneration Clause Goodwill Clause, if any
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Acts forbidden Requirements of disclosure of substantial interest of
partners in transactions to be entered by the LLPn Clause
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