Limited Limited liability partnership is is aa body body corporate corporate corporate having having its identity identity different different from from The The partners partners. The The concept concept is is already already working working in other other countries countries though though though though in in in some some of of The The countries countries it is is allowed allowed for for professionals professionals only only.
Limited Limited liability partnership is is aa body body corporate corporate corporate having having its identity identity different different from from The The partners partners. The The concept concept is is already already working working in other other countries countries though though though though in in in some some of of The The countries countries it is is allowed allowed for for professionals professionals only only.
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Limited Limited liability partnership is is aa body body corporate corporate corporate having having its identity identity different different from from The The partners partners. The The concept concept is is already already working working in other other countries countries though though though though in in in some some of of The The countries countries it is is allowed allowed for for professionals professionals only only.
Copyright:
Attribution Non-Commercial (BY-NC)
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Download as PPT, PDF, TXT or read online from Scribd
By CS Sumit Batra By CS Sumit Batra skbatrapcs@gmail.com skbatrapcs@gmail.com 03873428330, 011 03873428330, 01146034780 46034780 hat is LLP????? hat is LLP????? - - Limited Limited Liability Liability partnership partnership is is aa body body corporate corporate having having its its identity identity different different from from the the partners partners but but the the partners partners have have the the choice choice of of making making an an agreement agreement to to decide decide their their relationship relationship with with each each other other and and with with the the firm firm. . !t !t is is aa partnership partnership having having benefit benefit of of body body corporate corporate i i. .ee. . having having limited limited liability liability plus plus has has the the flexibility flexibility of of having having partnership partnership agreement agreement to to decide decide the the relationship relationship between between the the partners partners. . - - The The concept concept is is already already working working in in other other countries countries though though in in some some of of the the countries countries it it is is allowed allowed for for professionals professionals only only. . !n !n USA USA two two states states have have introduced introduced LLP LLP in in 1330 1330 and and rest rest of of the the 40 40 states states in in 1332 1332. . !n !n UK UK it it is is working working since since 2000 2000. . CS SUN!T BATRA CS SUN!T BATRA CA SUDHR HALAKHAND CA SUDHR HALAKHAND 3 3 BR!D OF CONPAN AND BR!D OF CONPAN AND PARTNER!P F!RN PARTNER!P F!RN - - !t !t is is aa combination combination of of the the Company Company and and firm firm because because it it has has separate separate entity, entity, perpetual perpetual succession succession and and further further the the partners partners liability liability is is Limited Limited but but it it has has less less formalities formalities regarding regarding procedures procedures in in comparison comparison of of Companies Companies.. Further Further the the mutual mutual rights, rights, obligation obligation and and responsibility responsibility of of partners partners can can be be decided decided by by agreement agreement of of LLP LLP So So you you can can say say it it is is aa hybrid hybrid of of Company Company and and traditional traditional Partnership Partnership.. So So it it has has finer finer points points of of both both traditional traditional partnership partnership and and company company.. CS SUN!T BATRA CS SUN!T BATRA CS.SUN!T BATRA LLP !N !ND!A LLP !N !ND!A - - !n !n !ndia, !ndia, aa concept concept paper paper on on Limited Limited Liability Liability Partnership Partnership Law Law was was brought brought out out by by the the Ninistry Ninistry of of Company Company Affairs Affairs in in 200S 200S. . !n !n the the year year 2006 2006 the the Limited Limited Liability Liability Partnership Partnership Bill Bill was was introduced introduced in in the the Parliament Parliament and and then then it it was was referred referred to to the the parliamentary parliamentary committee committee for for examination examination and and report report. . After After considering considering the the suggestions suggestions made made by by the the committee committee aa fresh fresh bill bill in in this this respect respect has has been been moved moved in in the the Rajya Rajya Sabha Sabha on on 21 2110 102008 2008 and and later later in in Lok Lok Sabha Sabha and and passed passed in in both both the the ouses ouses of of Parliament Parliament . . !t !t has has got got the the assent assent of of on on. . President President on on 77th th ]an ]an 2003 2003 and and now now it it has has become become Limited Limited Partnership Partnership Act Act 2008 2008. . - - Since Since Rules Rules are are at at drafting drafting stage stage and and the the Covernment Covernment has has issued issued the the concept concept rules rules for for inviting inviting suggestions suggestions and and it it is is expected expected that that rules rules will will be be finalized finalized till till 31 31st st. . Narch Narch 2003 2003 and and we we can can see see first first LLP LLP in in !ndia !ndia at at any any time time after after 11st st April April 2003 2003. . CS SUN!T BATRA CS SUN!T BATRA F!RST !ND!AN LLP F!RST !ND!AN LLP - - TE TE F!RST F!RST !ND!AN !ND!AN LLP LLP !LL !LL BE BE FORNED FORNED AT AT AN AN T!NE T!NE ON ON OR OR AFTER AFTER 11 ST ST APR!L APR!L 2003 2003 SR! PREN CAND CUPTA SR! PREN CAND CUPTA N!N!STER OF CONPAN AFFA!RS N!N!STER OF CONPAN AFFA!RS CS SUN!T BATRA CS SUN!T BATRA O TE PUBL!C !DENT!F O TE PUBL!C !DENT!F - - es es it it is is essential essential for for the the third third parties parties who who are are dealing dealing with with these these firms firms to to know know the the exact exact nature nature of of these these firms firms and and for for this this purpose purpose these these firms firms have have special special identification identification for for them them and and have have to to suffix suffix Limited Limited Liability Liability partnership" partnership" or or LLP" LLP" with with their their name, name, just just like like companies companies are are using using the the Limited Limited or or Ltd Ltd with with their their name name. . !n !n our our country country the the law law in in this this respect respect has has the the same same type type of of provision provision. . For For example example: : - - 11. . N/S N/S S!NE S!NE APPARELS APPARELS LLP" LLP" - - 22. . N/S N/S BTL BTL !ND!A !ND!A L!N!TED L!N!TED L!AB!L!T L!AB!L!T PARTNERS!P" PARTNERS!P" CS SUN!T BATRA CS SUN!T BATRA TO ON REC!STER TO ON REC!STER - - The The traditional traditional partnership partnership firms firms are are required required registration registration from from the the Registrar Registrar of of firms firms and and in in that that case case the the registration registration is is optional optional but but in in case case of of LLP LLP the the registration registration is is compulsory compulsory and and since since it it has has been been recognized recognized as as body body corporate, corporate, the the registration registration authority authority as as per per the the Limited Limited Liability Liability Act Act 2008 2008 is is Registrar Registrar of of Companies" Companies". . - - Section Section 22(s) (s) CS SUN!T BATRA CS SUN!T BATRA CARACTERST!CS OF LLP CARACTERST!CS OF LLP - - 11. . The The LLP LLP should should have have at at least least two two partners partners and and can can have have unlimited unlimited maximum maximum number number of of partners partners. . - - 22. . !t !t should should be be registered registered with with the the Registrar Registrar of of companies companies. . - - 33. . !t !t has has an an agreement agreement between between the the partners partners of of the the firm firm to to decide decide the the rights, rights, liabilities liabilities and and mutual mutual relationship relationship of of the the partners partners. . - - 44. . !t !t has has perpetual perpetual succession succession and and it it is is separate separate entity entity from from its its partners partners. . - - SS. . The The Liabilities Liabilities of of the the firms firms shall shall be be met met with with the the property property of of the the firm firm itself itself and and the the partners partners will will not not be be personally personally liable liable but but the the liability liability of of partners partners who who are are found found to to have have acted acted with with intent intent to to defraud defraud the the creditors creditors or or for for any any fraudulent fraudulent purpose purpose shall shall be be unlimited unlimited. . - - 66. . The The partners partners of of the the firm firm will will act act as as the the agent agent of of the the firm firm but but not not the the agent agent of of the the other other partners partners. . !n !n any any case case the the partners partners of of the the firm firm shall shall not not be be liable liable for for independent independent and and unauthorized unauthorized act act of of the the other other partners partners. . - - 77. . The The LLPs LLPs may may have, have, at at their their option, option, aa common common seal seal. . - - 88. . LLP LLP should should have have at at least least two two Designated Designated partners partners who who will will be be responsible responsible for for legal legal formalities formalities such such as as filing filing of of annual annual accounts accounts etc etc to to the the registrar registrar. . These These designated designated partners partners should should be be individuals individuals and and out out of of these these two two one one should should be be aa resident resident in in !ndia !ndia CS SUN!T BATRA CS SUN!T BATRA ACCOUNTS AND AUD!T ACCOUNTS AND AUD!T - - The The LLPs LLPs are are under under obligation obligation to to maintain maintain their their accounts accounts properly properly and and barring barring certain certain exceptions, exceptions, all all the the LLPs, LLPs, will will be be under under obligation obligation to to get get their their accounts accounts audit audit every every year year. . Further Further the the LLPs LLPs are are required required to to furnish furnish their their statement statement of of Account Account and and solvency solvency to to the the registrar registrar on on yearly yearly basis basis. . At At present present it it is is declared declared that that LLP LLP with with turnover turnover of of Rs Rs. .40 40 Lakhs Lakhs or or more more or or having having capital capital Rs Rs. .2S 2S Lakhs Lakhs or or more more are are required required to to get get the the accounts accounts audited audited by by aa CA CA. . CS SUN!T BATRA CS SUN!T BATRA REC!STRAT!ON FONRS REC!STRAT!ON FONRS - - FORNS FOR REC!STRAT!ON FORNS FOR REC!STRAT!ON 11. .FORN FORN NO NO11: : FORN FORN OF OF APPL!CAT!ON APPL!CAT!ON FOR FOR RESERvAT!ON RESERvAT!ON OF OF NANE(FESS NANE(FESS RS RS. . 200 200, , NANE NANE TO TO BE BE PREFERRED PREFERRED -- 33, , REQU!RED REQU!RED REPL REPL -- 77 DAS, DAS, NANE NANE RESERvED RESERvED -- 33 NONTS NONTS. . REQU!RED REQU!RED DETA!LS DETA!LS: : 11. . NANE NANE OF OF PROPOSED PROPOSED PARTNERS PARTNERS 22. . DET!ALS DET!ALS OF OF DES!CNATED DES!CNATED PARTNERS PARTNERS 33. . ADDRESS ADDRESS OF OF TE TE F!RN F!RN 44. . TREE TREE NANE NANE !N !N ORDER ORDER OF OF PREFERENCE PREFERENCE. . 22. . FORN FORN NO NO22: : FORN FORN OF OF !NCORPORAT!ON !NCORPORAT!ON DOCUNENT( DOCUNENT( CAP!TAL< CAP!TAL<11 LAK LAK RS RS. .S00 S00, , < <SS LAK LAK RS RS. .2000 2000. .00 00, , < < 10 10 LAKS LAKS RS RS. . 4000 4000. .00 00 AND AND CAP!TAL CAP!TAL > > 10 10 LAKS LAKS RS RS. .S000 S000. .00 00 33. . FORN FORN NO NO. .33 : : FORN FORN OF OF APPL!CAT!ON APPL!CAT!ON SS DECLARAT!ON DECLARAT!ON FOR FOR !NCORPORAT!ON !NCORPORAT!ON OF OF A A LLP LLP 44. . FORN FORN. .44: : !NT!NAT!ON !NT!NAT!ON OF OF OTER OTER ADDRESS ADDRESS OF OF SERv!CE SERv!CE DOCUNENTS DOCUNENTS CS SUN!T BATRA CS SUN!T BATRA !NvEST!CAT!ON !NvEST!CAT!ON - - CENTRAL COvERNENNT HAS POSER TO ORDER CENTRAL COvERNENNT HAS POSER TO ORDER THE !NvET!CAT!ON !F: THE !NvET!CAT!ON !F: - - 1. !f tribunal or court order as such 1. !f tribunal or court order as such - - 2. Not less than 1/S of the partners apply with 2. Not less than 1/S of the partners apply with evidence. evidence. - - 3. LLP itself apply. 3. LLP itself apply. - - 4. if Covernment has the opinion that 4. if Covernment has the opinion that circumstances suggest an investigation . circumstances suggest an investigation . - - CS SUN!T BATRA CS SUN!T BATRA !ND!NC UP !ND!NC UP - - 1. vOLUNTAR !ND!NC UP 1. vOLUNTAR !ND!NC UP - - 2. B TE ORDER OF TR!BUNAL: 2. B TE ORDER OF TR!BUNAL: - - LLP ANTS !T SOULD BE !ND UP LLP ANTS !T SOULD BE !ND UP - - NUNBER OF PARTNERS REDUCED BELO 2 S!NCE LAST > S!X NUNBER OF PARTNERS REDUCED BELO 2 S!NCE LAST > S!X NONTS NONTS - - LLP NOT !N POS!T!ON TO PA DEBTS LLP NOT !N POS!T!ON TO PA DEBTS - - LLP ACTED ACA!NST TE SOvERE!CN!T AND !NTERCR!T OF LLP ACTED ACA!NST TE SOvERE!CN!T AND !NTERCR!T OF TE COUNTR TE COUNTR - - NOT F!LED REUQ!RED DOCUNENTS FOR CONT!NOUS S EARS TO NOT F!LED REUQ!RED DOCUNENTS FOR CONT!NOUS S EARS TO TE REC!STRAR TE REC!STRAR - - !T !S ]UST AND EQU!TABLE !T !S ]UST AND EQU!TABLE CS SUN!T BATRA CS SUN!T BATRA DES!CNATED PARTENRS DES!CNATED PARTENRS - - AA new new concept concept of of designated designated partners partners has has also also been been introduced introduced in in the the LLP LLP Act Act 2008 2008. . Every Every LLP LLP has has at at least least two two designated designated partners partners who who will will be be responsible responsible for for all all the the legal legal and and procedural procedural formalities formalities as as prescribed prescribed in in the the LLP LLP Act Act2008 2008 which which includes includes the the filing filing of of returns returns and and Documents Documents etc etc. . The The designated designated partners partners should should be be individual individual only only and and one one out out the the same same must must aa resident resident !ndian !ndian who who has has been been in in !ndia !ndia for for 182 182 days days or or more more in in the the immediately immediately preceding preceding one one year year. . The The name name of of designated designated partners partners have have to to be be informed informed to to the the Registrar Registrar but but aa prior prior consent consent of of the the designated designated partner partner should should also also be be there there before before filing filing the the name name of of designated designated partner partner to to the the registrar registrar. . CS SUN!T BATRA CS SUN!T BATRA F!L!NC OF DOCUNENTS F!L!NC OF DOCUNENTS - - TO TE REC!STRAR OF CONPAN!ES TO TE REC!STRAR OF CONPAN!ES - - 11. . STATENENT STATENENT OF OF ACCOUNTS ACCOUNTS AND AND SOLvENC SOLvENC FOR FOR EAC EAC F!NANC!AL F!NANC!AL EAR EAR !T!N !T!N 60 60 DAS DAS FRON FRON TE TE CLOSE CLOSE OF OF TE TE F!NANC!AL F!NANC!AL EAR EAR PANALT PANALT RS RS. . 2S000 2S000. .00 00 NA NA EXTEND EXTEND TO TO RS RS. . SS LAK LAK LLP, LLP, RS RS. .10000 10000. .00 00 NA NA EXTEND EXTEND TO TO RS RS. . 11 LAK LAK (ON (ON DES DES. .PARTNER) PARTNER) - - 22. .ANNUAL ANNUAL RETURN RETURN !T!N !T!N 60 60 DAS DAS FRON FRON TE TE CLOSE CLOSE OF OF TE TE F!NANC!AL F!NANC!AL EAR EAR. . PANALT PANALT RS RS. . 2S000 2S000. .00 00 NA NA EXTEND EXTEND TO TO RS RS. . SS LAK LAK(ON (ON LLP), LLP), RS RS. .10000 10000. .00 00 NA NA EXTEND EXTEND TO TO RS RS. . 11 LAK LAK (ON (ON DES DES. .PARTNER) PARTNER) - - CS SUN!T BATRA CS SUN!T BATRA TANK OU TANK OU