What is Rule 16(2) of LLP Rules? Additional Address for LLP
Rule 16(2) of LLP Rules: Detailed Explanation for Indian LLPs A Limited Liability Partnership (LLP) in India must maintain a registered office address as per Section 13 of the LLP Act, 2008. However, businesses often expand, change their mode of operation, or open satellite offices. In such cases, they may require a second address for receiving official documents. That’s where Rule 16(2) of LLP Rules, 2009 becomes relevant. It provides LLPs the flexibility to declare an additional address for [...]
Salient Features of Limited Liability Partnership (LLP) in India
Understanding the Salient Features of Limited Liability Partnership (LLP) If you're planning to start a business or restructure your existing one, understanding the salient features of Limited Liability Partnership (LLP) is essential. Under Indian law, LLP offers a perfect blend of flexibility and legal protection, making it a preferred choice for many entrepreneurs and professionals. Introduced through the Limited Liability Partnership Act, 2008, LLPs combine the operational efficiency of a partnership with the liability protection of a company. This [...]
How Many Partners Can an LLP Have in India? No Upper Limit Explained
The Maximum Number of Partners LLP Can Have Is — All You Need to Know Choosing the right business structure is crucial for long-term success. Among the various options available in India, the Limited Liability Partnership (LLP) has become increasingly popular. It offers the benefits of a company (like limited liability) while preserving the flexibility of a traditional partnership. One of the most frequently asked questions is:“What is the maximum number of partners LLP can have?” Let’s understand the [...]
LLP Closure Procedure in India – A Step-by-Step Guide
LLP Closure Procedure in India – A Step-by-Step Guide A Limited Liability Partnership (LLP) is a flexible business structure that combines the benefits of a partnership with the advantages of limited liability. However, when an LLP becomes inactive, non-operational, or financially unviable, it's important to formally close it in compliance with legal requirements. Failure to do so may lead to hefty penalties, late fees, and continuous compliance obligations. This article explains the LLP closure procedure in India, including strike-off [...]
Partner Remuneration Calculator: Limits, TDS Rules & Interest
Partner Remuneration Calculator: Limits, TDS Rules & Interest on Loans Explained When structuring compensation in a Limited Liability Partnership (LLP) or traditional partnership firm, partners may receive remuneration, capital interest, loan interest, and profit share. However, to claim these amounts as allowable business deductions under the Income Tax Act, specific conditions must be met. This article serves as a complete guide on how to use a Partner Remuneration Calculator effectively—covering the latest tax limits, TDS provisions, and the treatment [...]
Partner’s Remuneration Under Section 40(b): Complete Guide
Partner’s Remuneration Under Section 40(b): Complete Taxation Guide In the realm of Indian partnership firms, partners often contribute more than just capital—they bring in expertise, management skills, and strategic direction. To compensate for these contributions, firms provide partners’ remuneration, encompassing salaries, bonuses, commissions, and other forms of payment. Grasping the nuances of its calculation and taxation is pivotal for both partners and firms to ensure adherence to tax laws and optimise financial planning. This provision also presents a valuable [...]
