Limited Liability Partnership ( LLP ) India – an overview
Limited Liability Partnerships were governed by LLP Act, 2008. The basic premise behind the introduction of Limited Liability Partnership (LLP) is to provide a form of business entity that is simple to maintain while providing limited liability to the owners. The incorporation of LLP is very easy when compared to other legal entity's with simple set of compliances. LLPs need only 2 Designated Partners and a LLP Agreement to commence its business operations.
Benefits of obtaining Limited Liability Partnership India
1. A right to sue can be available for partners only upon getting LLP registered. It is a juristic person and a separate legal entity.
2. It helps to follow going concern untill the partners came into an agreement to dissolve, even death of partner may not cause the LLP to close the business.
3. The liability of partners is limited, which relieve the partners to get their personal assets into business for purpose of paying liabilities.
4. The ownership can be transferred easily.
5. It helps to have legal support for the formal agreement entered by the partners to do such business.
6. Entrepreneurs earning a turnover of less than 40 Lakhs and capital contribution of less than 25 Lakh need not get their accounts audited .Therefore, LLPs are ideal for startups and small businesses that are just starting their operations and want to have minimal regulatory compliance related formalities.
Process of obtaining LLP Registration India
Step 1 Before incorporating check the availability of name, the registrar approves only those names which are not registered already. Name search can be done through MCA portal.
Step 2 Obtain Digital Signature for the partners and directors, In case of directors the law requires all directors to fill Form - DIR 3 for filing DIN.
Step 3 FiLLiP is to be filed for incorporating the LLP and required documents to be uploaded. Then such filed FiLLiP filed should be uploaded along with the prescribed fee.
Step 4 After verifying the geniuness of the details provided the registrar will approve the incoporation and issues an incorporation certificate.
Documents required for LLP incorporation India
1. Identity and Address proof of partners.
a. Aadhar/ Voter ID/ Driving License
b. PAN card
c. Latest Bank Statement.
2. Proof of address for business
a. Rental Agreement/ Utility Bills - if rented
b. Property Tax receipt - if owned
3. Scanned passport-sized photograph Specimen signature (blank document with signature [partners only] 4. Partnership Deed.
General FAQ - LLP Registration India
There is no minimum capital contribution requirement. It can be registered even with Rs. 100 as total capital contribution.
Limited Liability Partnership ( LLP ) Package
Limited Liability Partnership
Recommended ForProfessional services firms
Ease of Accommodating InvestmentPossible, but unlikely
Limited Liability ProtectionYes
Tax AdvantagesMost efficient