Limited Liability Partnership (LLP) Registration

LLP was launched in India by way of the Limited Liability Partnership Act, 2008. The main edge of a Limited Liability Partnership is one partner is not liable for another partner’s misconduct or negligence. LLP is favoured by Professionals, Micro and Small businesses that are family-owned or closely-held.

Limited Liability partnership offers the benefit of limited liability to its owners and at the same time needs minimal maintenance. The owners of a private limited company have limited liability to creditors. In case of default, banks/creditors can only sell the company’s assets and not the personal assets of directors.

An LLP also gives limited liability protection for the owners from the debts of the LLP. Accordingly, all partners in an LLP enjoy a kind of limited liability protection for every individual’s protection within the partnership, related to that of the shareholders of a private limited company.

Why to Choose LLP?

• Dual advantages- Company and a Partnership
• No partner will be responsible for other partner’s misconduct
• Cheaper to incorporate than a private limited company
• Limits the liabilities of its partners

Eligibility for LLP Registration?

• Minimum 2 Partners (Age Should be Above 18 Year)
• No Minimum Capital Required
• At least one designated partner should be Indian resident
• DPIN For All partners

Documents Required For LLP Registration?

Copy of PAN Card of partners

Passport size photograph of partners

Copy of Aadhaar Card/ Voter identity card/ Driver’s license as address proof

Electricity/ Water bill/ Telphone bill/ Latest bank statement as proof of Registered Office (Business Place)

Copy of Sale Deed/Property Deed (If owned property)

Landlord NOC (Format will be provided)

Passport (in case of Foreign Nationals/ NRIs)

Digital Signature Certificate

Copy of Notarised Rental Agreement

Copy of NOC from the property owner

Why choose LLP Registration?

• It has a separate legal entity, unlike partnership firms.
• The liability and responsibility of every partner are limited to the contribution made by the partner.
• An LLP has ‘perpetual succession’, that is extended survival until it is brought into end by mutual agreement between the partners.
• The cost of forming an LLP is low.
• Audit not required as LLPs are medium and small businesses who want to have minimal regulatory compliance linked to formalities.
• Less agreement and regulations in the formation of LLP.
• No terms for minimum capital contribution.
• The ownership of an LLP can be easily shifted to another person. All you require is to recruit them as a Designated Partner of the LLP.