Limited Liability Partnership (LLP)
HOME SERVICES FEEDBACK CONTACT US BLOG X Deepti Arora & Co. – Chartered Accountants Limited Liability Partnership (LLP) 11 May 2022|accounting, Limited Liability Partnership, LLP What is a Limited Liability Partnership or LLP’s? Investors are increasingly choosing the hybrid structure known as the limited liability partnership (LLP), which combines the advantages of both a partnership and a corporation. A legal LLP agreement creates a business structure. This LLP agreement specifies who will be the designated partner and the roles assigned to each partner. LLPs are sometimes described as a hybrid of partnerships and corporations. Features of a Limited Liability Partnership (LLP): The partner’s liability is limited to the shares purchased. This corporation has no joint liability. LLPs are subject to fewer compliance requirements than other types of businesses. If compliance costs are reduced, expenses are also reduced. The individual must sign an agreement to establish this business, and no further governing documents are required. The partners in this form of business are the only owners and assume full managerial responsibility. A Limited Liability Partnership (LLP) is a good option if you want to start a new company with your partners but don’t want to deal with as many regulations. LLPs have less compliance and more liabilities than other companies. Limited Liability Partnership (LLP) Registration Process The registration procedure is as follows: • Obtain a Digital Signature Certificate • Apply a Director Identification Number (DIN) • Approval of the Name • LLP incorporation • Submit LLP Agreement 1. To register LLP, the Designated Partners must first apply for a digital signature because all documentation is uploaded online and must be signed digitally. 2. The following step is to collect the Directors Identification Numbers for all of the LLP’s directors. 3. After logging onto the MCA’s official website, two proposed LLP names may be submitted for approval, handled by the Central Registration Certificate. 4. The following documents are required for the incorporation of a Limited Liability Partnership: For Partners: Photocopies of your PAN card, proof of address, proof of residence, photo, and passport. For the LLP: Proof of address or utility bill, a photocopy of the rental agreement, and a no-objection certificate obtained from the landlord. The Benefits of a Limited Liability Partnership: Partners’ assets cannot be removed or seized to satisfy partnership debts and liabilities in an LLP. Each partner’s liability is limited. Because an LLP is a distinct legal entity, business contracts are made in the LLP’s name and do not require signatures from all partners. In an LLP, the entire operations does not dissolve upon the death, financial crisis, or resignation of another one of the partners. LLP has no minimum capital contribution requirement. It is readily registered with the minimum capital. The number of members in an LLP is unlimited, just like in a corporation. In a limited liability partnership, partners’ responsibilities are flexible. Each partner has a personal right to govern the business as part of the agreement. Dividend distribution tax (DDT) does not apply to LLP because it adheres to principles of pass-through taxation. As a result, the company is not subject to double taxation, and each partner has to pay personal taxes. Conclusion The LLP concept is a hybrid of Partnership, and it benefits both small and medium-sized businesses. Each participant is accountable for their activities. Additionally, it is referred to as an “alternative corporate business vehicle” since its activity is similar to a general partnership but has a specific provision under the limited liability rule. Facebook-f X-twitter Contact Categories work from home tax self-employed salary slip roc rent paid rent payslip payroll deductions payroll pay slip mca kyc job change ITR india union target India income tax return income tax hra house rent allowance freelancing freelancer Form 16 finance employee compliance budget 2020 budget allowances Deepti Arora & Co. – Chartered Accountants Address 811, SIDCO ARAVALI APARTMENTS, GH-1,SECTOR 1, IMT MANESAR, GURUGRAM 122051 Contact Us +91 9999017642 +91 7827261120
DIR-3 KYC Who should file & when
HOME SERVICES FEEDBACK CONTACT US BLOG X Deepti Arora & Co. – Chartered Accountants DIR-3 KYC Who should file & when 6 August 2018 | accounting, compliance, finance, kyc, mca, roc In its latest announcement the Ministry of Corporate Affairs (MCA) had made it mandatory to do KYC of directors annually. For complying with the same DIR-3 KYC form has been provided. Who does it apply and what needs to be done is presented in the flow-chart below: Basic Documents required for DIR-3 1. PAN Card 2. Passport size photos of directors 3. Address proof of directors 4. Photo ID proof of directors 5. Passport No. 6. Driving Licence 7.Digital Signature 8. Aadhaar card 9. Electricity/Utility/Phone bill not more than 2 months old 10. Verified email and phone no. 11. Voter id number The copies of documents need to be self-attested by the Directors and the form to be certified by a practicing professional (Chartered Accountant or Company Secretary or CMA. Need help in filing DIR-3? Call us! Share this post: Facebook-f X-twitter Contact Deepti Arora & Co. – Chartered Accountants Address 811, SIDCO ARAVALI APARTMENTS, GH-1,SECTOR 1, IMT MANESAR, GURUGRAM 122051 Contact Us +91 9999017642 +91 7827261120
Changed job Lately?? Things to Do from income tax standpoint
HOME SERVICES FEEDBACK CONTACT US BLOG X Deepti Arora & Co. – Chartered Accountants Changed job Lately?? Things to Do from income tax standpoint 2 August 2018 | accounting, allowances, finance, Form 16, income tax, income tax return, India, ITR, job change, pay slip, payroll, payroll deductions, payslip, salary slip Switching jobs is usual. There are a lot of reasons while people change jobs. Some people change for financial gains while some change for career growth. The reasons can be plenty. Whatever is the reason, there is always an element of excitement of joining a new organization and you have new hopes and dreams with this change. To ensure that this excitement and enthusiasm continues and is not dampened by income tax issues, keep in mind the following points whenever you make a job change. 1. Make sure you always declare your income earned from previous employer to your current employer: I have come across a lot of cases where the employees changed jobs during a financial year and failed to declare the income from previous employer to the current one. The result : while filing their Income Tax Return they not only had to pay the differential tax but also had to pay interest on the tax which was not deducted by the employers. 2. Your tax slab can change when you combine the salary you have received from the different employers. 3. Provide all necessary documents to the employers so that you can claim benefit of exempted allowances, investments made, housing loan principal and interest benefit etc. 4. Don’t claim any exemptions twice: While you will submit the necessary proofs to take benefits allowable under income tax, at the same time ensure that you don’t end up taking any benefit more than once. 5. Don’t think you can hide the salary income: Your Form 26AS would reflect all the employers you have worked for and the salary they have paid to you. The same can be viewed when you logon to the income tax e-filing website: https://www.incometax.gov.in/ The income tax department too have access to this data so don’t think you can hide the salary you received during the year. My advise: next time you change a job, keep all these points in mind to ensure a smooth income tax compliance process. Still have any doubts, call us at 9999017642 Share this post: Facebook-f X-twitter Contact Deepti Arora & Co. – Chartered Accountants Address 811, SIDCO ARAVALI APARTMENTS, GH-1,SECTOR 1, IMT MANESAR, GURUGRAM 122051 Contact Us +91 9999017642 +91 7827261120