LLP is an incorporated partnership having limited liability and perpetual succession formed and registered as per the provisions of the Limited Liability Partnership Act, 2008. Being a hybrid between a Company and a partnership firm, it is a separate legal entity, where no partner is liable for the unauthorized action of the other partners, and whose liability is restricted to his own stake.

LLP is governed by the provisions of Limited Partnership Act, 2008. LLP has become a popular and preferred legal structure for businesses in India. 

The LLP is much economical to incorporate compared to a Private Limited Company, as it requires fewer compliances and can be a better option of business from a tax perspective as well. However, if you wish to raise venture capital funding or attract talent with employee stock options, private limited is the best way to go as LLPs cannot easily accommodate it. LLP's are only recommended for profit running businesses. The Liability of the partners incurred in the course of business does not extend to the personal assets of the partners. This is a great relief to the partners, particularly professionals like Company Secretaries, Chartered Accountants, Cost Accountants, Advocates and other professionals, etc. The scope of Limited Liability Partnership form of business is increasing in India as it’s easier to incorporate and manage and simpler compliance formalities.
 

Why go for an LLP?

1. Separate Legal entity and Limited Liability
In a Partnership firm, partners are personally liable for all their debts. So in case, they are not able to repay, the partners would have to sell their personal possessions to do so. However, in an LLP, only the amount invested in starting the business would be lost and all personal assets would be safe i.e; there is no personal liability to the creditors. Moreover, an LLP is a separate legal entity and a juristic person established under the law.

2. Reduced Compliance/ No Audit required
Entrepreneurs earning a turnover of less than 40 Lacs and a capital contribution of less than 25 Lacs need not get their accounts audited. Therefore, LLPs are ideal for startups and small businesses that are just starting their operations and want to have minimal regulatory compliance related formalities.

3. Tax Advantages
There are some major advantages of an LLP over the private limited company. For example, Dividend Distribution Tax and tax surcharge don't apply. Loans to partners are also not subjected to tax as income. This can be beneficial for partners who have a limited interest in the company or special tax requirements due to their interests in other businesses.

4. Uninterrupted Existence
An LLP is a separate legal person, is unaffected by the death or other departure of any Partner. Hence, an LLP continues to be in existence irrespective of the changes in the ownership. An LLP has ‘perpetual succession’, that is continuous or uninterrupted existence until it is dissolved legally.

5. Flexibility
LLP offers participants with greater flexibility in the management of the business. Partners have full authority over how they will individually contribute to the business operations. 

Documents required for LLP Registration

• Copy of PAN Card of the partners 
• Passport size photograph 
• Copy of Aadhaar Card/ Voter identity card
• Copy of Rent agreement (If property is rented)
• Documents for the Registered Office
• Electricity/ Water bill (Business Place)
• Copy of Property papers/ Sale Deed (If owned property)
• Landlord NOC (as per the provided format)
• Copy of Notarized Rental Agreement

Minimum Requirements For LLP Registration

• Minimum 2 Partners
• Zero Capital Requirement
• At least one Designated Partner should be an Indian Resident
• Designated Partner Identification Number for all Partners

What is included in our package

• DPIN( Designated Partner Identification Number ) for 2 partners
• Digital Signature for 2 partners
• Name search and approval
• ROC fees and PAN card
• An LLP Agreement

You May Also Want To Know

1. What is the minimum number of partners required for an LLP Registration?
At least two partners are required to start a Limited Liability Partnership firm.

2. Who can become a partner in an LLP?
Any individual or organization can become a partner in an LLP including Foreigners/NRI's. However, the person should be over 18 years of age and must have a valid PAN card.

3. Do I need to be present in person to incorporate an LLP?
Since the procedure is entirely online so you need not be present in person. You just have to send all the required documents via mail.

4. How much money do I need to invest to incorporate an LLP?
You need to have a bank account with minimum balance of Rs. 5000. You need not invest any more capital to incorporate an LLP.

5. Can I register LLP at my home address?
Yes, you can register your LLP at your residential address. It is perfectly legal to start your company at home because the MCA team doesn’t visit your office.

6. What is LLP Agreement?
An LLP Agreement determines the mutual rights and duties of the partners and rights and duties in relation to LLP. The LLP Agreement is required to be filled to Registered Office of LLP.

7. Liability of Partners in LLP is limited to what extent?
In LLP, Liability of Partners is limited to the extent of their contributions as agreed in the LLP Agreement.

8. Who cannot be a Partner in LLP?
(a) A corporation sole
(b) A corporate society 

9. Who is Designated Partner in LLP?
Every LLP shall have at least two designated partners who are individuals and at least one of them shall be resident in India.

10. What are the responsibilities of Designated Partner?
The Designated Partners solely responsible for the management and execution of all the acts and things required to be carried out by the LLP including compliance of the provision such as annual filings, filings of documents and filings of statement as per the LLP Act.

11. Is LLP Audit compulsory?
LLP whose turnover exceeds, in any financial year, Rs 40 Lacs or whose contribution exceeds Rs.25 Lacs shall be required to gets its accounts audited.