Documents required for LLP registration for small business
There are certain requirement for LLP registration for Small Business which are required to keep in mind; https://www.registerkaro.in/post/llp-registration-for-small-business
There is no minimum capital requirement
Your personal assets are safe in case of business debts
No taxing until there is a minimum turnover, only annual income tax returns filed
You being the owner, can manage the company, it is not the case in certain big corporations, the owners choose different people to manage the company generally, this is not compulsory , this is as per the business structure of big corporation which is known as in legal terms- Private Limited Company.
Acts, as separate legal entity, a separate person, different identity from those of its partners who are running it
Attracting Investors to this business structure is not easy which is a disadvantage with comes with the benefits.
You, as an individual need to have a partner to conduct business minium of two partners, you might be doubting for the person, if the person lasts during longer duration or not, so one thing that you need to know that an LLP is unbothered by the change in its partners.
One partner can run, in cases when partner leaves, dies or diminishes due to any reason the business until, by taking the sole liability but this period can lost for 6 months .
You need to take the help of a legal professional for drafting one of the most important legal documents that is an LLP Agreement, which contains all the terms and conditions in which the business would be operated and how the profit-sharing and other things that need to be done.
Now, with these you may have doubts where are these rules and regulations generated from so they are generated from the governing laws and acts which are as follows:
Limited Liability Partnership Act, 2008
Limited Liability Partnerhsip Rule, 2008
LLP Agreement, what is drafted and what terms are mentioned by the legal professionals after consulting you.
Which section of the act provides these, you can refer the points as per the way that they are numbered as a), b)…
Not mentioned in any section specifically, that a capital investment is needed hence , it is interpreted from the LLP Act , that there is no minimum capital needed.
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Section 10(1), permits about this taxing feature
Section 7 of the LLP Act, 2008 talks about this feature.
Section 3 of the LLP Act, 2008 talks about this feature.
It is a practical consideration, not mentioend specifically in the LLP Act
Section 6(1) of the Act, 2008 mentions about this feature.
Section 24(4) provides the feature of being unbothered by change in partnership;Section 24(3) , allows for this feature to run as sole partner with sole liability
Section 23 of the LLP Agreement, discusses this in detail.