LLP is the preferred entity form for professional services firms (law, CA, consulting) and small businesses that want limited liability without the heavier compliance of a private limited company. Choosing LLP over Pvt Ltd affects funding, taxation, exit options, and ongoing compliance costs.
CA, CS, lawyers, architects, and consultants often form an LLP for limited liability and tax pass-through.
Lower compliance cost than a Pvt Ltd, with no requirement for an audit (subject to turnover).
LLPs can hold IP, real estate, and investments with simpler governance than a company.
Existing partnerships can convert to LLP; companies can also convert to LLP in some cases.
Incorporating a new LLP, drafting or amending the LLP Agreement, changing designated partners, adding or removing partners, converting from a partnership firm or company, filing Form 8 and Form 11 each year, and closing the LLP when no longer needed.
LLPs are taxed at a flat 30% with no dividend distribution tax (DDT), unlike companies. However, any remuneration to partners is taxable in their hands, and the recent tax changes mean LLP profits may be taxed at a higher effective rate if the firm is classified as a "specified association".
We incorporate LLPs, draft the LLP Agreement, file Form 8 and Form 11 each year, and handle changes in partners, capital, and address. For conversion from partnership or company, we manage the full conversion process and post-conversion ROC filings.
