What Is The Need Of Limited Liability Partnership?

An LLP or a Limited Liability Partnership is a certain corporate structure which has combined the flexibility in a partnership along with the advantages of having limited liability.The limited liability partnership of a company at a low compliance cost, so in a way, it’s an alternate vehicle for the corporate business which would provide the benefits of a limited liability of a given company. It would provide with all the above mentioned and at the same time will allow its involved members the flexibility of having an internal management organized on the basis of mutual agreement that they arrive on. And this is in the case of having a partnership firm.

Details and benefits of a limited liability partnership

Because of such a flexibility in the structure of Limited Liability Partnership, it’s rather useful when you have a small or a medium enterprise. And basically for all the service sector enterprises in general. Internationally the limited liability partnerships are a more preferred vehicle for running a business and particularly in the service sector that involves many professionals so that the investors are never at the risk of losing everything on an international level.

A limited liability partnership is always governed by the rules and provisions that come under the limited liability partnership act of the year 2008 and the salient features of it are as followed: –

• A limited liability partnership is a corporate body and also a legal entity of itself which is separate from the partners that run it.
• Whenever any two individuals that are associated in carrying out a lawful business with the financial profit in mind could subscribe their names to a document and then incorporate their partnership by filing that document to the registrar and form a Limited Liability Partnership. This limited liability partnership could have a perpetual succession.
• The rights and the duties are mutual to all the partners involved in the limited liability partnership and these shall be governed by a legal agreement among the partners in limited liability partnership. All subject to the provisions summarised under the limited liability partnership act of 2008. The act hereby provides a flexibility for devising their agreementas per their choices.
• The limited liability partnership itself is a legal entity will have the liability of having its own assets to a full extent. This will be through the partners being limited with respect to their agreed contribution in the limited liability partnership. The once formed limited liability partnership may or may not be tangible in nature, also none of the partners would be then liable on the accounts of any unauthorized independent actions performed by other partners in the Limited Liability Partnership. If any partners are found to have been into fraud activities or any misconduct then those partners’ liability shall become unlimited for all the damages and debts caused through them.
• Any limited liability partnership formed must have at least two individuals designated as the partners. It’s compulsory that at least one of these two must be a resident of India and their duties and obligations will then be provided as per the law.
• The limited liability partnership will be under the mandatory obligation of filing their annual returns on the maintained accounts that will, in turn, reflect their state of affairs whether their work is being done in fairways. These statements of their accounts must be filed each year with the registrar and also must be mandatorily audited depending on their annual turnover in the business.
• The central government has the power for investigating the affairs of any limited liability partnership in case it feels the need to. A competent inspector shall be sent to visit to do the job of investigation.
• Any compromises or any arrangements that will include any merger or an amalgamation of the respective Limited Liability Partnership then it shall be in accordance with the provisions under the limited liability partnership act of 2008. The Indian partnership act of 1932 will not be applicable to the limited liability partnerships.

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What Are The Laws Related To The MSME Registration In India?

We will be discussing everything related to the MSME business and it’s registration in this article. MSME is a short form of micro small medium enterprises. These may also be called as SSI which is a short form of small-scale industry. Now it’s called Udyog Aadhaar these days. These small businesses are the foundation of most of the economic growth and development of India, almost a backbone. On top of that these MSME Businesses are encouraged by the government itself and promoted too. Now how they promote it? Well the government launches different schemes and gives several financial and otherwise benefits to whoever gets an MSME Registration. So basically MSME doesn’t really require a registration but it’s a good idea to do so in order to avail the government given benefits.

Know the Basic Laws related to the MSME Registration

The micro small medium enterprises may avail a wide range of government subsidies and different financial benefits under the MSMED Act. The MSME business could be in both, the manufacturing sector as well as the service sector. There are registration categories for MSMEs depending upon their size and turnovers and also upon the amount of money invested. So while you are at it, let’s see their categories.

Types of MSME Registration Based on their Size, Investment, and Turnovers

·         Micro Enterprises-This category is of micro enterprises which are the smallest of all the MSMEs. The criteria for MSME Registration in India under this category is when the investment in the manufacturing enterprises is less than the amount of Rs 25 lakhs while the Investment in the service sector is or less than the amount of Rs 10 lakhs.

·         Small Enterprises-This is the second category within the MSMEs. The small enterprises must have an investment between the amount of Rs 25 lakhs and Rs 5 crore in the manufacturing sector while between the ranges of Rs 10 lakhs and Rs 2 crores in the service sector.

·    Medium Enterprises-The medium enterprises being the largest in the MSMEs for a category, here the investment for the manufacturing sector should be between the amount of Rs 5 crore and Rs 10 crores. While it should be between the amount of Rs 2 crores and Rs 5 crores.

What Is Required for MSME Registration Application?

·         Government Registration frees

·         The MSME Registration application form.

·         Prescribed list of documents for the submission at the registrar office.

Procedural steps for MSME/SSI Registration

1)                 Complete the MSME Registration application form or SSI Registration online process application form.

2)                 Prepare the listed documents required for MSME Registration. This shall take 1 to 2 days.

3)                 Filing for the MSME Registration application – the application is to be filed along with all the prescribed list of required documents that we had prepared earlier. And submit both to the MSME Registration registrar. This shall take about 2 days.

4)                 Your MSME Registration application will be verified by the department for the approval. By this step your side of the job is complete. And you just wait.

5)                 Once your MSME or SSI Registration application has been approved by the MSME Registration department, an MSME Registration certificate or your SSI Registration certificate will be issued in your name and will be sent to you via courier.

 
That’s it, your MSME Registration is complete. But in case if you are planning to take the help of specialists who can guide you all the way then pick up a renowned organization by searching through the Google. We at Swarit Advisors are the leading online service providers whose experts are dedicated 24/7 hr to serve you with the best possible solutions in a hassle-free way.

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