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This article explains Limited Liability Partnership (LLP), Key features of an LLP, Minimum Requirement to Start A LLP (Partners, Capital, Name), Documents Required For LLP Registration (Identity Proofs and the evidence of Partners of the LLP ,  required Stamp Paper etc.) , Procedure of LLP Registration and Advantage of LLP (Statutory and Taxation).

What is Limited Liability Partnership (LLP)?

Limited Liability Partnership (LLP) is business shape which provides benefits of confined liability and flexibility of a partnership enterprise. Compliance requirement is much less in LLP in comparison to agency form of business structure. Audit is exempted up to sure stage of turnover in case of LLP. Minimum two members can form an LLP. There is no most restriction at the variety of its partners. This is preferred desire for small groups and as opposed to fashionable partnership. We “Solubilis” are main LLP Registration consultants.

An “LLP” is basically, a hybrid of a limited liability company and a partnership firm (a new shape as envisaged inside the Act), is predicted to benefit entrepreneurs, experts and businesses immensely.

For a long time, a need became felt for a new company shape that might offer an opportunity to the conventional partnership, with unlimited personal liability on the one hand, and, the statute-primarily based governance shape of the limited liability partnership at the other. This changed into to be able to allow professional know-how and entrepreneurial initiative to combine, organize and function in an efficient and bendy manner.

It is an opportunity company enterprise vehicle that offers the blessings of restrained limited liability partnership of a organisation but permits its members the flexibility of organizing their inner management on the premise of a mutual agreement, as is the case in a partnership firm. This set-up could be pretty useful for small and medium corporations in general and for the establishments within the services area in particular. Internationally, LLPs are the favorite set-up of commercial enterprise specially for service industry or for activities related to professionals.

LLP shall be a frame corporate and a criminal entity separate from its companions. It may have perpetual succession. While the LLP could be a separate felony entity, susceptible to the full volume of its assets, the liability of the partners would be confined to their agreed contribution inside the LLP.

Further, no accomplice could be liable because of the unbiased or unauthorized actions of other partners, as a consequence allowing man or woman partners to be protected against joint legal responsibility created by way of another accomplice’s wrongful commercial enterprise decisions or misconduct.

Key features of an LLP in India

• There have to be at the least two members for LLP registration. There isn’t any maximum number of members in a Limited Liability Partnership.
• Any man or woman, organization or LLP can emerge as a accomplice but most effective an character can grow to be a designated associate in a LLP.
• NRIs and overseas nationals can start LLP in India, furnished they submit all of the necessary files upon getting them notarised via the involved authorities. Also, at the least one of the designated companions inside the LLP need to be an Indian national.
• Designated Partnership Identification Number (DPIN) is a unique identification range given to an present or a capability Partner of any LLP which is incorporated.
• There isn’t any minimum capital requirement to sign in an LLP in India. An LLP may be registered with simple deposit in a modern-day account.
• An LLP Agreement is entered into by the person companions of the LLP. It includes the control policies, coverage making strategies, inclusion on new accomplice, proportion of companions, on loss of life of an current partner and such other matters pertaining to management of the LLP.

Minimum Requirement to Start an LLP

• Minimum Two People: Two humans are had to check in the LLP. However, there is no restrict on maximum partners.
• No Minimum Capital: Capital in case of LLP is depending at the want of the enterprise and contribution to partnership by way of partners. The Stamp Duty at the deed is primarily based on the amount of capital.
• Resident Person requirement: One Designated partner of LLP should be from India.

• Unique Name: Name of the LLP need to be unique, and it need to not be same or similar to the name of any present company, LLP or trademark which is registered or implemented for.

Documents Required For LLP Registration

• Latest passport size Photographs of all partners

• PAN (Permanent Account Number) of all the Partners of the LLP(Minimum 2)

• Identity Proof of each partner, (Aadhar Card, Passport, Driving License or Voter ID Card)

• Address Proof of all partners (Bank Statement or Passbook, electricity bill, telephone bill, Aadhar card or any utility bill)

• Copy of Mobile invoice, telephone bill, electricity bill or Bank Statement of all Partners with Present address

• Registered Office Address Proof – Electricty Bill along side Rent Agreement / ownership proof of proposed registered office.

• Stamp paper for LLP Agreement of State wherein LLP is to be Incorporated

• Documents Must be self attested

Procedure of LLP Registration

• Issue of Digital Signature Certificate (DSC): DSC is necessary to signal the e-utility for Limited Liability Partnership registration. Photo, Identity proof and Address proof is required with DSC form for DSC issuance.

• Name Approval: Name approval of LLP is required for application for Limited Liability Partnership registration. Name of LLP ought to be unique and ought to no longer be just like the existing or carried out company, not a already existing LLP or a trademark. In Form LLP_FiLLiP (eForm-2) call approval may be carried out simultaneously with utility for LLP registration.

• Registration Certificate of LLP: After DSC, Name approval or LLP_FiLLiP (eForm-2) incorporation files are submitted to MCA for Limited Liability Partnership registration, the Registrar difficulty the certificate of incorporation after his/her satisfaction. If Partners already have permitted DPIN then so as to be used and if Partners do no longer have accepted DPIN then DPIN could be accepted simultaneously with Registration of LLP.

• LLP Agreement filing with Registrar: After incorporation of Limited Liability Partnership,  the companions of the LLP ought to enter into a LLP Agreement and document it with the ROC within 30 days of Incorporation. Non submission of LLP Agreement incurs a penalty of Rs. one hundred for every day of delay.

• Application for PAN & TAN of LLP: PAN & TAN is needed to be taken for smooth walking of the enterprise.

• Bank Account beginning Support: A LLP ought to have a modern-day account in its commercial enterprise name, to do the transaction of business.

Advantage of LLP

• Limited Liability: Partners’ legal responsibility of the LLP is constrained and it is confined most effective to their contribution by way of them to the LLP.
• Separate Legal Entity: LLP is a separate felony entity and a juristic person wonderful from its partners and each can sue each different and be sued.
• Continuity of lifestyles of the LLP: LLP live on even after the dying of the partner.
• Minimal regulatory compliance: Regulatory compliance are very much less in case of LLP compared to company form of entity.
• Property Ownership: LLP enjoys the right to personal, enjoy and transfer property. The rights may be exercised through the LLP in its personal name.
• No Audit Requirement: There isn’t any audit requirement as much as turnover of less than forty Lakhs and capital contribution of less than 25 Lakh.
• Transferability of possession: The possession of a LLP can be without problems transferred to another man or woman. However, transferee must be inducted as a Designated Partner of the LLP.
• Taxation: Both Partners & LLP can provide mortgage to every other. There is no dividend tax in case of LLP.

We “Solubilis Corporate Services” are the registered Patent attorney, Company Secretary and Trademark Attorney in Chennai, Coimbatore, Bangalore, Hyderabad, Cochin, Salem, Madurai, Trichy, Tirupur and Karur. We have the team of well-experienced members to do your Company registration in Madurai, Coimbatore, Chennai, Bangalore, Hyderabad, Cochin, Salem, Trichy, Tirupur and Karur. For more details, kindly go through our website and contact us. Our experts are just one call away from you. Thanks for reading!!!