A Limited Liability Partnership (LLP) is governed under LLP act 2008, LLP is a partnership in which liability of all or some members is limited. hence, no member shall liable for the acts of other partner except in case of fraud. LLP shall be body corporate and a legal entity separate from its partner.
ADVANTAGES OF LLP:
Following statutory requirements to form LLP:
Procedure for Incorporation:
1. application for DSC/DPIN application for DIN/DPIN shall be made in form DIR-3.
2. acquire and register DSC
3. new user registeration
4. Incorporate a LLP apply for name reservation in form-1. form-2 is filled for filling incorporation documents.
5. file LLP agreement LLP agreement shall be file within 30days of incorporation in form-3.
Compliances of LLP:
annual return shall contain detailed summary of change in management. every LLP shall required to file annual return in form 11 to the registrar within 60 days of closer of financial year i.e it has to be filled before 30th may every year.
statement of account & solvency shall required to filled in form-8 on or before 30th october every year.
it should be noted that LLP whose turnover exceeds rupees 40lakh or partners contribution exceeds Rs. 25lakh are required to get their accounts audited by auditor
LLP shall file its income tax return in ITR-5. this return shall be filled electronically. due date – in case of LLP account audit 30th September of every year
in case of audit is not required 31st july of every year
in case LLP is involved in international business 30th November of every year
Tax liabilities on LLP: