LLP means limited liability partnership. LLP is one of the easiest forms of business in India. LLP is governed by the Limited Liability Partnership Act, 2008. It is a legal entity separate from its partners. The limited liability partnership (LLP) offers the benefit of a limited liability to the partners at a low compliance cost. By the benefit of limited liability, partners are not responsible towards the creditors of the company. If any problem arises, creditors/banks can only sell the assets of the company and not the director’s personal assets. In the LLP, a partner is not responsible for the misconduct done by other partner. It is less expensive to incorporate as compared to a Private Limited Company. It also limits the partner’s liabilities.
What Is Included In Our Package?
What are the documents needed for the LLP Registration?
The following documents are needed for the LLP registration:
- Partners passport size photographs
- Identity proof of the partners
- Address proof of the partners
- Passport of the partners
- PAN card copies of the partners
- NOC from the landlord (If rented)
- Rental agreement copy between the LLP and the landlord.
- Proof of registered office address
- Digital signature certificate
For LLP registration, Following are the minimum requirements:
At least two partners
No minimum requirement of capital
Minimum one partner should be an Indian resident
Registered office should not be situated in a commercial space
Benefits of LLP
Distinct Legal Entity
A LLP is a separate legal entity established under the Limited Liability Partnership Act 2008. The partners are separate from the entity and can sue each other and get sued in the procedure.
A LLP has interruption free existence or perpetual succession. It is brought to an end by the partner’s mutual agreement. Partners will come and go but an LLP runs continuously.
Audit not needed
In LLP, there is no need to audit accounts of those entrepreneurs who are having a turnover of less than 40 lakhs rupees and capital contribution of less than 25 lakhs rupees. LLPs are best for start-ups and the small businesses that just started their operations and want to have minimal compliance related formalities.
Ownership transferred easily
The LLP ownership can be transferred easily to another person by making him as a partner in LLP. LLP is a legal entity separate from its partners. Therefore, if you change the partners, the ownership of LLP will also change.
The LLP is an artificial judicial person who can enjoy, own and acquire property in its own name. This is totally separate from its partners. As LLP is a going concern, no partner can make any claim upon the property of LLP.
The key advantage of a LLP is its limited liability. It is accountable for limited amount of debts as compared to partnership and proprietory firms. If the company is bankrupt, members are not held responsible for the creditors. Creditors can be paid by selling the assets of the office. Directors’ personal assets are secure in this case.