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Ca in llp

NAVIN (CHARTERED ACCOUNTANT) (38 Points)

11 September 2014

I am a Chartered Accountant qualified in May 2014, and want to start practice in partnership with my collegues. Can i start practice By forming an LLP. If yes, then what is the procedure, and what will be the liabilities of each partner.

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(Guest)

Dear Navin,

First of all, congratulations on qualifying.

Yes, you can form an LLP of CAs to start your practice.

Reasons:

1.As you may already know that LLPs are NOT treated as body corporate exclusively for the disqualification purpose of conducting income tax audits. Hence, an LLP of CAs can do tax audits as well.

2. Other than audits, you can also carry out other functions of a CA firm just like a partnership firm of CAs.

Procedure in breif:

1. Get DIN/DPIN and DSC of each partners.

2. Register your LLP details on MCA21 portal under "registered user"

3. E-File Form 1 (Name change/registration) and Form2 (incorporation) with the ROC.

4. Within 30 days of incorporation, file LLP agreement in Form 3. This would take care of the disclosure of your "liabilities" criterion.

About liabilities to be stated in the LLP agreement:

1.Liability of partners shall be limited except in case of unauthorized acts, fraud and negligence.

2.Liabilities of the LLP whether arising in contract or otherwise, are solely the obligations of the LLP to be met out of the property of the LLP.

Hope it helped.

Best wishes for your career ahead.

Kind regards