Limited Liability Partnership

Limited Liability Partnership Registration is ideal for small and medium-sized businesses with LLP, it is a hybrid of a Private Limited Company and a traditional Partnership Firm. 

A Limited Liability Partnership is a business entity incorporated under the LLP Act, 2008. The key advantage of an LLP over a partnership firm is that partners are not liable for the misconduct of other partners. LLP also offers its partners the safety net of limited liability. Unlike the shareholder of a Private Limited Company, partners of an LLP can directly manage the business, which makes LLPs an attractive proposition for business incorporation.

Businesses that have no requirement for equity funding in their lifecycle should opt for a Limited Liability Partnership as equity shares cannot be issued by LLPs. However, where there is a need for businesses to attract equity funding then Private Limited Companies are a better option as compared to LLPs. Examples of such businesses are closely held firms offering professional services such as architects and other professional services. 

eStartIndia is the best business and legal services platform for services relating to Limited Liability Partnership Registration in India, offering a variety of company registration services like Private Limited Company Registration, One Person Company (OPC) registration, Partnership registration, Public Limited Company registration, Nidhi Company Registration, Section 8 Company Registration, Producer Company registration,  Indian Subsidiary registration, and FSSAI registration.

eStartIndia will help you with Limited Liability Partnership Registration from the comfort of your home, offering you services that are very technical and as per individual needs.

Get a free consultation for Limited Liability Partnership Registration with Our Top Rated Experts with simple Registration.

Advantages of Limited Liability Partnership Registration

• Separate Legal Entity — A LLP is a distinct entity from its partners which essentially implies that it is competent to contract, can sue, and be sued. A key point to note is that a partner of an LLP is not liable for the misconduct of another partner.

• Limited Liability of Partners — A LLP offers safety to the personal assets of the partners in the form of limited liability in the event of a liquidation. In the scenario where an LLP is unable to repay its debts, the personal assets of the partners are safe and the partners are only liable for the initial amount invested in the business. However, this does not hold true if fraud has been discovered on behalf of a partner.

• Perpetual Existence — A LLP continues to exist until it is legally dissolved by its partners. Death or departure of any partner for any reason has no effect on the LLP’s existence and the LLP continues to exist even when there is a change in ownership.

• No Ownership Distinction – The business of the LLP is managed by the partners who are also the owners of the business. Here there is a clear difference from a Private Limited Company, wherein the shareholders of the company can differ from the company directors. This is one of the reasons that Venture Capitalists prefer not to invest in an LLP as there is a lack of clear distinction in ownership.

• No Audit requirement –In case the capital contribution of an LLP is lesser than 25 Lac rupees and turnover is less than 40 Lac rupees, there is no requirement for an audit. This particular feature makes LLPs a preferred choice for small businesses as well as startups.

• Flexibility in Agreement – Since an LLP is owned by its partners, they have complete freedom with regard to agreement drafting in the matter of their rights and duties.

• Property Ownership — Since an LLP is an artificial juristic person; it can own and sell the property under its name. As long as the LLP is a running concern, the property owned under the LLP name cannot be claimed by any partner.

• Lesser Compliance Required — It is much easier and cheaper to run an LLP as there is just three compliance every year.

• Easy to Wind Up — It is easy to start an LLP and also It’s easier to wind up an LLP, as compared to a private limited company.

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Minimum Requirement For Limited Liability Partnership

• A minimum of 2 partners.

• A minimum of 1 designated partner to be an Indian Resident.

• LLP office address proof.

• DPIN (Designated Partner Identification Number) for ALL company partners.

• DSC (Digital Signature Certificate) for ALL company-designated partners.

• A natural person must be nominated in case a corporate is an LLP partner.

• No minimum requirement of capital but every partner must mandatorily contribute towards LLP capital.

Documents Required For Limited Liability Partnership Registration

For Partner /Nominee:

• Self-attested copy of PAN card.

• Identity Proof.

• Passport.

• Aadhar card.

• Voter ID.

• Driving license.

• Passport-size photographs.

Address Proof:

• Self-attested copy of Telephone/Mobile or Electricity bill( Current Month).

• Bank Account Statement (Less than 2 months old).

Others:

• Signed LLP Agreement.

For Registered Office; Company Address Proof:

• Telephone/Mobile/Electricity/Gas bill (Less than 2 months old).

• In the case of rented premises a notarized copy of the Rent Agreement with a No-Objection Certificate (NOC) for conducting business.

• In the case of self-owned premises registered title document.