The LLP means limited liability partnership. LLP is regulated by the Limited Liability Partnership Act 2008. The limited liability partnership needs minimum maintenance and offers the benefit of the limited liability to the owners. The private limited company directors have limited liability towards the creditors. In default case, creditors / banks can only sell the assets of the company and not the director’s personal assets.
You can select a LLP because it offers dual benefits, for example, it is a partnership as well as a company. In the LLP a partner is not responsible for the misconduct done by the other partner. It is less expensive to incorporate as compared to a private limited company. It also limits the partners 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:
- NOC from the landlord
- Property papers copy (if the property is owned by you)
- Water/Electricity Bill (Business Place)
- Rent agreement copy (if property is rented)
- Voter identity card/Aadhar card copy
- Partners passport size photographs
- PAN card copies of the partners
For LLP registration, minimum requirements are following:
All partners DPIN
At least two partners
No requirement of capital
Minimum one partner is designated as Indian resident
What is meant by Limited Liability Partnership or LLP?
LLP or Limited Liability Partnership is a distinct legal entity which provides the advantage of limited company liability apart from the flexibility of partnership, where a partner is not liable for the misconduct done by the other partners and their duties and rights are governed by the agreement of the LLP.
Via the Limited Liability Partnership Act 2008, Limited Liability Partnership is launched in India. The main idea behind launching the Limited Liability Partnership (LLP) is to offer a kind of business organization which is easier to maintain and offers limited liability to the owners.
Benefits of LLP
Distinct Legal Entity
A LLP is a juristic person and a 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 partners mutual agreement. Partners will come and go but an LLP runs continuously.
Audit not needed
Those entrepreneurs who are having a turnover of less than rupees 40 lakhs and contribution of capital less than 25 lakhs rupees require not to audit their accounts by someone. LLPs are best for the small businesses and the startups which are just beginning their operations and wish to have minimum formalities regarding compliance regulation.
Ownership transferred easily
The LLP ownership can be transferred easily to another person. You require to induct a person as a designated LLP partner. LLP is a distinct legal entity and is separate from its partners. Therefore, via managing partners changing, the LLP ownership can change easily.
The LLP is a juristic person and it can enjoy, own and acquire property in the name owned by it. This is totally separate from its partners. As the LLP is having a continuous existence, a partner can not make any claim on the LLP property.
Liability is Limited
The key advantage of a LLP is its limited liability. Its legal status is accountable for a limited amount of LLP debts as compared to partnerships and proprietorships. The members liability with respect to the debts of the LLP is limited. If the company is bankrupt, the directors’ personal assets are secure.