In this blog, we are going to inform the readers about whether an Indian LLP (Limited Liability Partnership) company has a CMD ( Chairman and Managing Director). Before answering the question, the readers should be aware of what is the definition of an LLP and how to register an LLP company in India.

What is an LLP?

The LLP or Limited Liability Partnership company will suit a business person if the businessperson wants to form a company that is an amalgamation of partnership and corporation as well. After its introduction in 2009, LLP has now become a popular business form and many businesspersons now want to go with it. After registering an LLP company in India, a company can run as an LLP. 

What are the Advantages of an LLP?

You can say there is a minimum of five benefits that an LLP is going to provide you. You can have a look at them.

1. Minimal Registration Cost

The registration cost of an LLP is less than the registration cost of an OPC, Private Limited Company, or any other business formation. 

2. No Compulsory Audit

LLPs are not required to make regular audits. When it is mandatory for other public and private companies to make a regular audit, it is not mandatory for the LLPs to make an audit from an audit firm.

3. No Minimum Capital

The minimum amount of capital can be enough to run an LLP. Any tangible or intangible asset will be enough for the LLP as the capital amount as well as there is no capital stipulation that is associated with the LLP firms.

4. No Owner Limit

There is no owner limit for the LLP or Limited Liability Partnership company. An LLP can be formed with two to two hundred owners without any problem. There is no owner limit in the case of an LLP.

5. Succession Rule

The LLP continuation is not going to be affected by death, retirement, or any other causes. The LLP runs as per the 2008 act.

These are the five advantages of registering an LLP company in India.

Who is a CMD (Chairman and Managing Director)?

Usually, the CMD or Chairman and Managing Director is the person who is appointed by the board of directors. CMD or the whole time director looks after the company affair on a regular basis. The CMD has to manage the double function of attending the meeting with board directors and managing the company at the level of a manager. 

What are the responsibilities of a CMD?

CMD usually handles the primary responsibility of the LLP. You can have a look at the responsibilities that a CMD usually takes.

1. CMD takes the direct responsibility of controlling the resources, and recruitment policy of the company
2. All the important factors of a company like manufacturing to promote, the entire responsibility is under the control of CMD.
3. Negotiation is a primary responsibility of the CMD. For example, a CMD has to make regular negotiations with the suppliers, government agencies, and customers as well.
4. Quality is the ultimate matter for any company. Looking at Quality Management is the responsibility of a CMD.
5. Legal hassles are very common nowadays for companies. For controlling the legal hassles, the CMD has to take prime responsibility.

These five points are included as the daily responsibilities of a CMD.

Can An Indian LLP Run with a CMD?

Just like the other companies, the LLP can have a DP (Designated Partner) and internal management structure as well as a CMD after company registration and paying LLP incorporation fees. For looking after the internal management of the company, an LLP must have a CMD.

The answer is yes. An LLP must have a CMD to run the company affair smoothly without any problem.

Can Online Legal India™ Help in Any Way with LLP?

When you need everything legal in an easy way without paying any extra money, like the liability of partnership, or something else, then the first name will come is Online Legal India™.

Not only company registration, you can ask them for any other kind of help like, how to file ITR online, and so on.

Conclusion

Overall, an LLP surely has a CMD and it is the normal level of functionality for an LLP or Limited Liability Partnership company.