Limited Liability Partnerships (LLP)

Incorporate your Limited Liability Partnership seamlessly. Understand eligibility, view required documents

  • Own Legal Identity
  • Saves Money and Time
  • Flexibility in Management
  • Tax benefits
  • Increased Credibility
  • No Fixed Money Needed
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Limited Liability Partnerships (LLP)

Limited Liability Partnerships (LLPs) are a modern and advantageous company form. An LLP combines the benefits of partnership dynamics with the security of limited liability, providing a diverse platform for entrepreneurs to collaborate and create with confidence.

Businessregistro makes it simple to form a limited liability partnership in India. Many businesses depend on us to assist them register their Limited Liability Partnerships and ensure they follow the requirements. Our team of specialists will walk you through the online registration process from start to finish. It is the quickest and most cost-effective option to register your LLP; all you need to do is contact us. With LLP registration, you may get started right away and prepare for a prosperous company future.

What is an LLP?

A Limited Liability Partnership (LLP) is a unique type of business structure that combines the characteristics of a partnership and a company. In an LLP, partners have limited liability, similar to shareholders in a corporation, while simultaneously benefiting from the flexibility and simplicity of partnership. This structure establishes the LLP's legal character, allowing it to take and be subject to legal actions independently of its partners.

LLPs have gained popularity among entrepreneurs in a variety of industries because they protect partners' assets and have less legal requirements than ordinary corporations. The concept of LLP was introduced in India in 2008, and it is overseen by the Limited Liability Partnership Act, making it a dependable and adaptable alternative for enterprises of any size.

LLP Registration Requirements and Eligibility Conditions

To qualify for the registration of an LLP firm in India, you must meet the following criteria:

  • Minimum of Two Partners:

    Establishing a Limited Liability Partnership in India requires at least two partners, with no upper limit on the number of partners.

  • Designated Partners:

    At least two designated partners are required under the partnership system, and they must be natural humans. At least one of these designated partners must also reside in India.

  • Nomination for Body Corporate Partner:

    If a corporation assumes the function of a partner, a natural person must be designated as its representative.

  • Agreed Contribution:

    Each partner is required to contribute the LLP's shared capital, as specified and agreed upon.

  • Minimum Authorized Capital:

    The LLP must have an authorized capital of at least Rs. 1 lakh.

  • Indian Resident Designated Partner:

    The LLP's designated partner must be a resident of India.

By meeting these requirements, you can proceed with the registration of an LLP in India and take advantage of the benefits provided by this company structure.

Characteristics of LLP

  • Legal Identity:

    Like large corporations, an LLP has its own legal identity. This means it is viewed as its own "person" with rights and obligations distinct from those who possess it.

  • At least two partners:

    An LLP requires at least two people to form it. This collaboration is beneficial in establishing the business and operating together.

  • No Partner Limit:

    Unlike other firms, an LLP has no maximum number of partners. This makes it simple to expand and bring in new partners.

  • Two Designated Partners:

    An LLP must have at least two "main" partners. These folks must be genuine people, with at least one living in India.

  • Limited Responsibility:

    One big plus of an LLP is that if something goes wrong, each partner is only responsible for what they put in. So, personal things are safe from business problems.

  • Cost-Effective Start:

    Starting an LLP costs less than setting up a big company. This makes it a great option for smaller businesses.

  • Less Rules to Follow:

    LLPs don't have to follow as many rules and regulations as big companies. This means less paperwork and less to worry about.

  • No Minimum Money Needed:

    Unlike big companies, you don't need a certain amount to start an LLP. Partners can invest what they can afford.

Advantages of LLP

The benefits of a Limited Liability Partnership (LLP) are discussed in depth below:

  • Own Legal Identity:

    Like large corporations, an LLP functions independently. This increases people's trust and willingness to engage with it because it can perform legal tasks autonomously.

  • Less Risk for Partners:

    Partners have less risk because LLP partners are only responsible for what they invest. They are not obligated to pay for all debts or losses, which benefits their reputation.

  • Saves Money and Time:

    Starting an LLP is less expensive and has fewer regulations than larger corporations. Every year, the amount of documentation required decreases.

  • No Fixed Money Needed:

    There is no fixed amount of money required to create an LLP. Partners can contribute whatever amount they choose.

LLP Name Structure

Choose a unique brand that is not already in use by other businesses. This simplifies the approval process and proves your identity. Include words that clearly explain what your company performs. This allows individuals to better comprehend your services or products.

End your LLP's name with "LLP" or "Limited Liability Partnership." This is required to demonstrate your business structure.

Procedure for LLP Registration

  1. Obtain a digital signature certificate (DSC).
  2. Obtain the Director Identification Number (DIN).
  3. Select a Name for the LLP.
  4. Form for Incorporating an LLP
  5. Draft an LLP Agreement
  6. Obtain the Certificate of Incorporation.
  7. Apply for PAN and TAN

Documents Required For LLP Registration

  • PAN Card
  • Passport (Foreign Nationals Only)
  • Voters Identity Card
  • Ration Card
  • Driving License
  • Aadhaar Card
  • Passport Size Photo
  • Recent Utility Bill
  • Business Place

LLP Registration FAQ's

To form an LLP, at least two individuals (known as Designated Partners) must be appointed. Individuals must be 18 or older and have a valid Indian address. Individuals or organizations (such as businesses) can be designated partners. Foreign nationals, foreign corporations, and limited liability partnerships can all be designated as Designated Partners.

The cost of creating an LLP in India is determined by the number of partners, their respective contributions, and any additional registration expenses. Setting up an LLP in India incurs additional expenditures, such as professional fees, stamp duty, and other registration requirements.

Yes, all Limited Liability Partnerships (LLPs) must pay items and Services Tax (GST) depending on the services or items they provide. LLPs must obtain a GST registration and submit GST returns on a regular basis.

A digital signature certificate (DSC) is a mechanism for electronically identifying the sender or signee in digital transactions. The Ministry of Corporate Affairs (MCA) requires it for certain partners in specified processes.

A DPIN is a unique identifying number provided to both present and future designated partners in a Limited Liability Partnership (LLP). All current and future directors must receive a DPIN.

The timeframe for LLP incorporation is determined by document submission and government approvals. Businessregistro can help you form an LLP within 14-20 days.

The Foreign Investments Promotion Board (FIPB) allows FDI through the automated procedure in an LLP. Foreign Institutional Investors and Foreign Capital Investors cannot invest in LLPs.

An existing partnership firm or a Company that is unlisted can be converted into an LLP. This conversion into an LLP brings in many benefits.

For the Partners:

  • PAN or Passport
  • Any Identity proof
  • Bank statements
  • Registered office proof
  • NOC from the landlord to use the premises of the registered office
  • Any utility bills of the premises which are not less than two months.

A Limited Liability Partnership (LLP) is a hybrid of a partnership and a limited company that combines the benefits of both.

An LLP is expected to file. 1. Fill out Form 11 to file your LLP annual return. 2. Final Statement of Account and Solvency 3. Income Tax Returns.

An LLP cannot collect contributions from the public in any way. In an LLP, only partners may contribute capital, and their liability is restricted to the amount of their contribution.

LLP Registration is the registration of an entity that provides the advantages of a Company and the flexibility of a Partnership firm in a Single organization.

It is usually preferable to create an LLP over a Private Limited Company, even though both have the same features. Incorporating an LLP is less expensive than forming a Private Limited Company. Similarly, the LLP owner owns and controls the company. LLPs have fewer compliances than Private Limited Companies.

The process of forming an LLP is entirely online. All you have to do is submit the documents online. Our consultants will provide regular follow-ups.

A minimum of two partners are necessary to form an LLP.

There are numerous reasons why someone should form an LLP. The registration fee is cheap. There is no requirement for a minimum contribution. There are no restrictions on the proprietors of the firm. It is not essential to conduct an audit. There is less tax compliance.

A Limited Liability Partnership must have at least two partners, but an LLP can have any number of partners.

The selected Partner must be a natural person who is over the age of 18. The LLP Act of 2008 permits international nationals, including foreign companies, to form an LLP in India as long as at least one designated partner is Indian.

An LLP can be created with any amount of money; there is no minimum requirement. A partner may contribute both actual and intangible assets.

The basic goal of a limited liability partnership (LLP) is to offer partners with limited liability protection while simultaneously allowing them to partake in the business's earnings and losses.

For additional information on the purpose of a limited liability partnership, please see our article.

An LLP is responsible for its obligations, which means that the partners are not personally liable for any debts incurred by the LLP. But if an LLP can't pay its debts, the partners only have to pay out any money they've invested into the firm and nothing more.

  • A single person cannot form an LLP; at least two members are required.
  • Two foreigners cannot form an LLP without at least one Indian partner.
  • The LLP structure takes additional days to form.
  • Partners agree to donate some sum to the LLP firm.
  • Difficulty transferring ownership
  • FDI in LLP is permitted only through the government method. FDI in LLP through automatic means is not permitted.
  • LLPs cannot raise External Commercial Borrowing ("ECB").

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