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Limited Liability Partnership is a form of business entity that is seen as a partnership. However, it does have the limited liability perk protecting the assets of the LLP owners. Introduced by the Limited Liability Partnership act of 2008, it is most popular form of business infrastructure after a company. In order to establish it, you need to go through LLP registration in India.
Being Limited Liable is not the only way that an LLP differs from a partnership. In partnership firm, if one partner does something wrong, both the partners are held accountable. However, one of the major benefits of LLP registration in India is that one partner’s misconduct aren’t going to affect the other partner.
The other features of LLP are as follows:
These features are the reasons why many entrepreneurs around India gravitate towards the LLP registration in India.
Process of Registration
The LLP Registration process in India is quite easy. As a result, several business individuals find it easier to establish their businesses as an LLP. The process is as follows:
The LLP Agreement entails the details of powers wielded by the partners of the LLP.
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Starting a Limited liability partnership firm in India can be made easy through Registrationwala. Our business professionals that consist of Chartered Accountants, Company Secretaries and others can aid you establish your LLP.
And then, you can touch the skies with your business.
Note:- Your registered office need not be a commercial space; it can be your residence, too.
An LLP is known to have partners whereas a Private Limited Company features shareholders.
A partner who is behind the act of misconduct is held responsible for the act, and not the other partners.
This unique number is allotted to an individual and remains valid for whole life. That individual needs to become a partner in any LLP.
After submitting LLP incorporation details, the ROC issues certificate of incorporation if the details are correct.
One can use the Form 3 to file an LLP agreement.
Any two individuals who choose to become partners can establish an LLP.
Giving by its name, it is basically a digital signature of a person and is needed for filing the e-forms of LLP setup electronically to Ministry of Corporate Affairs. Digital Signature Certificates or DSC or Digital Signature are being accepted by various government agencies and now is a statutory requirement in different applications. It is a useful way of electronically signing documents.
There is no minimum capital requirement for LLP incorporation.
No, they dont need to present in this case.
The time consumed for LLP incorporation will depend on the filing of relevant documents by the client and speed of Government Approvals. To ensure a speedy process of incorporation, it is advisable to pick a unique name for your LLP and ensure you have all the required documents are provided before starting the incorporation process.
Certificate of Incorporation is a certificate allotted by the registrar of companies after due verification of the documents submitted by the proposed partners of an LLP. It is the conclusive evidence of incorporation of an LLP.
Yes, a salaried person can become partner in an LLP.
Yes, an NRI/Foreigner can become a partner of an LLP.
In case of LLP, there is no limit on the maximum number of partners.
No, an LLP can’t be incorporated for nonprofit activities.
Yes, you can convert an existing partnership firm or company into an LLP. There could be several reasons behind this conversion.
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