Limited Liability Partnership (LLP) was introduced in India by way of the Limited Liability Partnership 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. LLP has many advantages like :- (Separate Legal Entity:) LLP is a separate legal entity from the partners. Each partner can sue the other in case a situation arises. It has an uninterrupted existence that follows perpetual succession, i.e., the partners might leave, but the business remains. A term of dissolution has to be mutually agreed on for the firm to dissolve. (Flexible Agreement:) Transferring the ownership of LLP is also simple.
A person can quickly be inducted in as a designated partner and the ownership switches to them. (Suitable For Small Business:) LLPs having a capital amount less than 25 lakhs and turnover below 40 lakhs per year do not require any formal audits. It makes registering as LLP beneficial for small businesses and startups. An LLP can own or acquire property because it is recognized as a juristic person. Partners of LLP cannot claim the property as theirs. (No Owner Distinction:) An LLP has partners, who own and manage the business. This is different from a private limited company, whose directors may be different from shareholders. For this reason, VCs do not invest in the LLP structure.
Atlest 1 Partner should be Indian
Minimum 2 Partners
Agreed Contribution from both partners
Limited Risk For Partners
Documents Required
To initiate the LLP company registration process, partners are required to furnish the following documents:
- PAN Card/ID Proof of Partners: Address Proof of Partners: Partners can submit the following documents: Voter’s ID, Passport, Driver’s License, or Aadhar Card.
- Residence Proof of Partners: Partners need to provide recent documents such as a bank statement, telephone bill, mobile bill, electricity bill, or gas bill from the last 2-3 months.
- Passport-size Photograph: Partners should provide a passport-size photograph with a white background.
- For Foreign Nationals and NRIs: Foreign nationals and NRIs intending to partner in an Indian LLP should submit their passport. Additionally, proof of address, such as a driving license, bank statement, residence card, or any government-issued identity proof containing the address, is required.
- Proof of Registered Office Address: This includes the landlord’s rent agreement and a no-objection certificate if the office space is rented. A recent utility bill (gas, electricity, or telephone) with the complete address and owner’s name (dated two months or older) should also be submitted.
- Digital Signature Certificate (DSC): At least one designated partner must have a DSC for digitally signing documents.
What You will get
- Company PAN & TAN
- Company Name Approval
- MOA & AOA
- Incorporation Certificate
- DSC
- DIN