Applicability of Labour Laws • LLPs are subject to central and state labour laws like any business • Laws apply based on number of employees and type of work • Key acts include EPF Act, ESIC Act, Payment of Wages Act, etc. • Applicability depends on wage limits,...

Suitable Legal Structure • LLP offers a flexible and recognized structure for professionals • Allows lawyers, CAs, architects, and consultants to work jointly • Partners retain control without forming a full corporation • Combines partnership advantages with limited...

Legal Eligibility • LLP is a recognized legal entity under Indian law • It is eligible to apply for government schemes and programs • Grants may be offered for startups, MSMEs, or sector-specific activities • LLP must fulfill the eligibility criteria of the respective...

No Concept of Renewal • LLPs in India do not require periodic renewal like licenses • Once incorporated, LLP remains active until it is legally closed • Continuity depends on annual compliance, not formal renewal • No expiry date is issued with LLP registration •...

Legal Provision • LLP Act 2008 mandates maintenance of proper books of account • Law does not restrict the format as long as records are accurate • Books can be kept manually or in electronic format • Electronic records must be accessible and verifiable • Must be...

Legal Authority • LLPs are governed by the Limited Liability Partnership Act, 2008 • The Act permits LLPs to operate anywhere within India • There are no legal restrictions on interstate operations • LLP has the status of a national legal entity • Can carry on...

Basic Registrations After Incorporation • PAN and TAN registration are mandatory for all LLPs • GST registration is required if turnover exceeds ₹20 lakhs • Professional Tax registration is applicable in select states • Shops and Establishments registration may be...

Identify the Type of Asset • Check if the transferred asset is a short-term or long-term asset • Long-term applies if held for more than 36 months before transfer • Type of asset includes land, building, shares, or business interest • Capital gain rules differ for...

Defined in LLP Agreement • Loss sharing ratio is agreed upon by partners in the LLP agreement • It can be equal or based on capital contribution or custom terms • Agreement must clearly mention loss distribution in writing • Flexibility exists to set different rules...

Legal Recognition • LLP is a separate legal entity under Indian law • It has the right to own assets including intellectual property • It can register IP in its own name like a company • LLP can be the legal owner of trademarks copyrights and patents • Ownership gives...