Limited Liability Partnership (LLP)
Limited Liability Partnership is a new corporate structure that combines the flexibility of a partnership and the advantages of LLP Registration at a low compliance cost. In other words, it is an alternative corporate business vehicle that provides the benefits of LLP Registration, but allows its members the flexibility of organizing their internal management on the basis of a mutually arrived agreement, as is the case in a partnership firm. Owing to flexibility in its structure and operation, it would be useful for small and medium enterprises, in general, and for the enterprises in services sector, in particular. Internationally, LLPs are the preferred vehicle of business, particularly for service industry or for activities involving professionals.
How to incorporates a LLP
The time required to Register LLP Company depends on documentation, availability of digital signature and name approval of the company. we normally take to complete the incorporation process within a period of 15 Days.
Conversion From Private Limited Company Into Limited Liability Partnership [Section 56]: A Private Company may Convert into a Limited Liability Partnership in accordance with the provisions of this Chapter and the Third Schedule.
Automatic Transfer: All the assets and liabilities of the firm immediately before the conversion become the assets and liabilities of the company.
LLP’s will be treated as Partnership Firms for the purpose of Income Tax w.e.f assessment year 2010-11