Limited Liability Partnership
Limited Liability Partnerships, LLP is a unique and new form of business that combines the advantages of both 'Company' and 'Partnership' in a single business entity. This business form was introduced in India in the Year 2008 with the approval of the Limited Liability Partnership Act, 2008.
LLP is a superior form to partnership. The partnership is often discouraged to use because of its unlimited liability feature, i.e. your personal assets may also be held up in case all the dues are not cleared. Hence, it is very risky to use this form of business. So, to overcome this problem, a most important feature of limited liability of company is added to the partnership, which results in Limited Liability Partnership.
LLP is a separate entity, which can be formed in India by a minimum of two persons coming together with a motive of earning profit. Unlike a Private Limited Company, an LLP is easy to manage. It is subjected to minimal post registration compliances.
Some of the demerits of an LLP are, one doesn’t have the option of generating equity in an LLP which decreases the chances of raising funds from the investors in case of a startup, as investors are mostly expected to take up some percentage of the profit shares from the company.
Although, if a startup is not keen on raising funds and wants less stress on the compliances filing part, then they can opt for LLP type of partnership.
An LLP in India has following features:
DIN , DSC & Name Approval
1 to 7 Days
Submission of Form 2
8 to 12 Days
Certificate Of Incorporation
12 to 15 Days
Submission of Form 3 & 4
16 to 22 Days
WHY LIMITED LIABILITY PARTNERSHIP?
Easy to Form
Easy Transferable Ownership
No Audit Requirement
Limited liability partnerships offer partners flexibility in business ownership. Partners have the authority to decide how they will individually contribute to business operations.
Frequently Asked Question
Following are the documents required for LLP incorporation for each partner
- Self attested PAN card copy.
- Four Photographs.
- Self attested copy of any one of the Identity Proof like Driving License, Passport, Voter ID & Aadhar Card
- Self attested copy of any one of the Address Proof like Bank Pass Book/Bank Statement, Telephone Landline Bill, Mobile Bill & Electricity Bill.
- LLP Address proof Electricity Bill, Telephone Bill, Mobile Bill & Gas Bill AND Rent Agreement
(If Rented ) AND NOC for doing Business & for taking Registration.
- LLP agreement.
Certificate of Incorporation is a certificate issued 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.