Partnership Deed | LLP formation | IEC Registration | Payroll Processing | PT Registration
In fast-changing business scenarios, there are changing laws, rules and regulations which over the time now and then, require actions and steps to be undertaken in order for smooth functioning. Our client’s function in this complex business scenario and there is a need to centralize all their legal compliances, mandatory requirement laws and regulations, and therefore CHOKSI TAX SERVICES assists its clients in providing further mentioned services meeting client expectations.
Partnership Deed
Partnership is defined as a relation between two or more persons who have agreed to share the profits of a business carried on by all of them or any of them acting for all. The owners of a partnership business are individually known as the “partners” and collectively as a “firm”. Its main features are:-
A partnership is easy to form as no cumbersome legal formalities are involved. Its registration is also not essential. However, if the firm is not registered, it will be deprived of certain legal benefits. The Registrar of Firms is responsible for registering partnership firms.
The minimum number of partners must be two, while the maximum number can be 10 in case of banking business and 20 in all other types of business.
The firm has no separate legal existence of its own i.e., the firm and the partners are one and the same in the eyes of law.
In the absence of any agreement to the contrary, all partners have a right to participate in the activities of the business.
Ownership of property usually carries with it the right of management. Every partner, therefore, has a right to share in the management of the business firm.
Liability of the partners is unlimited. Legally, the partners are said to be jointly and severally liable for the liabilities of the firm. This means that if the assets and property of the firm is insufficient to meet the debts of the firm, the creditors can recover their loans from the personal property of the individual partners.
Restrictions are there on the transfer of interest i.e. none of the partners can transfer his interest in the firm to any person(except to the existing partners) without the unanimous consent of all other partners.
The firm has a limited span of life i.e. legally, the firm must be dissolved on the retirement, lunacy, bankruptcy, or death of any partner.
LLP formation
Like partnership, partners of LLP can frame agreement for defining their terms, profit sharing ratio etc. The basic contents of Agreement are, Name of LLP, Name of Partners and Designated Partners, and Form of contribution, Profit Sharing ratio and Rights and Duties of Partners.
In case no agreement is entered into, the rights & duties as prescribed under Schedule I to the LLP Act shall be applicable. It is possible to amend the LLP Agreement but every change made in the said agreement must be intimated to the
Advantage
- Renowned and accepted form of business worldwide in comparison to Company
- Low cost of Formation
- Easy to establish
- Easy to manage & run
- No requirement of any minimum capital contribution
- No restrictions as to maximum number of partners
- LLP & its partners are distinct from each other
- Partners are not liable for Act of partners
- Less Compliance level
- No exposure to personal assets of the partners except in case of fraud
- Less requirement as to maintenance of statutory records
- Less Government Intervention
Disadvantage
- Easy to dissolve or wind-up
- Professionals can form Multi-disciplinary Professional LLP, which was not allowed earlier
- Any act of the partner without the other partner, may bind the LLP
- Under some cases, liability may extend to personal assets of partners
- Cannot raise money from Public
We at CHOKSI TAX SERVICES offer a range of LLP formation service that includes the following stages:
Stage I – Partners
To form a LLP, there Minimum two partners and at least two shall be designated partners having DIPN. In case of body corporate as partners, their nominee can be act as designated partners. Out of two designated partners, one must be resident in India. (Who has stayed in India for a period of not less than one hundred and eighty two days during the immediately preceding financial year)
Stage II – Obtaining DPIN & Digital Signature
DPIN can be obtained by making an application online with�www.llp.gov.in�After submitting the online application, signed physical copy of Form 7 has to be submitted to Ministry of Corporate Affairs along with certified copies of address proof and Identity proof of the applicant.
Digital Signature can be obtained from any of the Certifying Authorities in India.
Stage III – Name filing
After finalization of name, an application of name availability has to be filed in form 1 with�www.llp.gov.in�for approval. Please note that selection of name is subject to Guidelines issued by MCA.
Stage IV – Agreement
LLP agreement has to be drafted line with LLP Act. It is not mandatory to file LLP agreement at the time of registration and same can be file with in 30 days. If no agreement is framed, provisions of Schedule I of the LLP Act shall be applicable.
Stage V – Filing of Incorporation Documents
The following documents along with required attachments has to be filed withwww.llp.gov.in
Form 2:
Details of partners, registered office etc Subscription Sheet: All partners are required to subscribe their names along with signatures to the subscription sheet, which shall be witnessed by any chartered Accountant/Company Secretary/Advocate in practice.
Form 4:
Consent of Partners – Consent of each partner to become a partner of Liability Partnership
Form 3:
LLP agreement – this can be filed with in 30 days from the date of registration
Above said documents are required to be filed after signing digitally. After verification, registrar will register all documents and issue Certificate of Incorporation.
IEC Registration
The Importer Exporter Code, or IEC in short, is normally required by manufacturers and companies for international trade but with this new RBI ruling, the hundreds and thousands of freelancers, programmers, web designers and small companies who depend on PayPal for foreign payment will also have to apply for an IEC code.
So, If you want to import or export goods into or from India, you should have a valid Import-Export Code number (IEC number). The customs authorities will permit you to import or export goods if you have a valid Importer-Exporter Code (IEC) number. So everyone who want to start export goods or imports goods must understand the procedure to get IEC number.
An applicant may now choose one of the two options for application submission:
File an online application and submit a physical copy of the application by taking a printout of the online application.
Submit a physical copy of the application directly at the regional DGFT office.
Team of Experts at CHOKSI TAX SERVICES, helps you with entire process of registration for IEC, from assisting into the relevant form filing, the documents required, the procedures, follow-ups with the authorities and thereby help in getting you the certificate of IEC
Payroll Processing
Companies often initially process payroll themselves for any number of the following reasons:
- They consider in-house processing to be more cost-effective than outsourcing
- They are protective of wage information
- They want to maintain control over payroll data to handle last-minute changes.
In truth, smaller firms with a stable, salaried staff and minimal changes in tax obligations may well be better off processing internally; it can certainly be more convenient and efficient if your needs are straightforward. But many ultimately discover it’s not all that cheap — especially when you factor in the time spent managing the process.
Plus, without the proper knowledge of payroll procedure and access to a sound payroll program, it’s easy to make mistakes. Employees as well as central government, state, and local tax collection agencies need to be paid in full, on time, and in the proper manner. Usually, late payments are cause for monetary penalties.
Finally, using a payroll service can ease your mind. And given the ever-changing nature of tax regulations, it’s easy to make an error that can grossly affect your bottom line.
Choksi Tax Services, has the team of Accounting And Tax Services experts who will help to manage your payroll processes by updating the relevant sheet’s, making the salaries of employee’s, pay taxes of employees (TDS), local and other embodied taxes as applicable, so that you run a care free business and concentrate on most important decisions of your company.
PT Registration
- Company Registration
- Employees Registration
Professional Tax registration is compulsory for:
Choksi Tax Services, has the team of experts who will help to manage you get your Professional Tax registration completed.
Reach us for more information, for resolving your complex queries and easily meet our team of experts by calling on our number +91 79 71727115 or mail us your query at info@choksitax.com.