Limited Liability Partnership (LLP)
Limited Liability Partnership (LLP)
LLP Registration in India has evolved into an alternate type of business that incorporates the advantages of both company limited by shares and partnership firm into a single entity. The Limited Liability Partnership Act of 2008 established the concept of LLP in India. This one-of-a-kind hybrid is ideal for launching small and medium-sized enterprises.
In India, forming and managing a Limited Liability Partnership is simple. There is no diminution(restriction) on the Maximum number of partners necessary to register an LLP; however, it requires a minimum of two partners to be registered. The LLP Agreement spells forth the rights and responsibilities of the partners.
The Limited Liability Partnership (LLP) is a balanced arrangement that provides the benefits of a traditional partnership while also limiting the participants' obligations. The Limited Liability Partnership Act of 2008 adheres to it as a commercial arrangement between the partners. It has swiftly become a popular option for service and professional enterprises such as Chartered Accountants, hiring agencies, consulting organizations, and so on.
We at TAX BARR provide fast and economically trustworthy services for LLP registrations and an opportunity to consult an expert for initiating your business as LLP in the market today.
Note: LLP is eligible for Startup India registration under the Startup India Initiative scheme undertaken by the Government of India.
Benefits of registering a business as an LLP:
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Limited Liability
Many new organizations prefer LLP over partnership registration to protect their partner's personal assets from any loss incurred by the LLP.
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Operational Flexibility
The LLP Agreement is a contract between the partners of an LLP(can be of people or organizations). "Designated Member" of LLP handles day-to-day operations to enable the partners' duties and obligations to be clearly explained.
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Separate Legal Existence
The formation of an LLP establishes a Separate Legal Entity from its partners. It is a significant benefit that a standard partnership business does not have.
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Lower Compliance Requirement
One significant advantage of forming an LLP over starting a private business is fewer regulatory requirements. LLPs, unlike companies, are exempt from compliance requirements such as board meetings, statutory meetings & maintenance of minutes book, and so on.
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Flexible Agreement
It is also straightforward to transfer ownership of an LLP. A person can simply be named as a partner, and ownership of the company is transferred to them.
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Suitable For Small Business
LLPs with a capital of less than 25 lakhs and yearly revenue of less than 40 lakhs are exempt from formal audits. For small businesses and startups, this makes forming an LLP attractive.
Documents required:
Note: In case of NRI or Foreign National, documents of partner must be notarized or apostilled
PAN CARD
PAN Card of all partners
Foreign nationals may provide passport
Partners Address Proof
Aadhar Card and Voter ID/ Passport/ Driving License of all partners
Photograph
Latest Passport size photograph of
all partners
Business Address Proof
Latest Electricity Bill/ Telephone Bill of the registered office address
DSC
DSC of all partners
required.
NOC from owner
No Objection Certificate to be obtained from the owner of registered office
Rent Agreement
Rent Agreement of the registered office should be provided, if any
Capital Contribution
Amount of capital contribution
by each partner