LIMITED LIABILITY PARTNERSHIP (LLP)
Limited Liability Partnership (LLP) is a body corporate formed and registered under the Limited Liability Partnership Act, 2008 and is a legal entity separate from that of its partners. LLP has perpetual succession. Any change in the partners of LLP shall not affect the existence, rights or liabilities of the LLP. Every LLP shall have at least two designated partners who are individuals and at least one of them shall be resident in India. In case of a LLP in which all the partners are bodies corporate or in which one or more partners are individuals and bodies corporate, at least two individuals who are partners of such LLP or nominees of such bodies corporate shall act as designated partners.
Explanation. For the purposes of this section, the term resident in India means a person who has stayed in India for a period of not less than one hundred and twenty days during the financial year.
Advantages of LLP Registration
Separate Legal Identity: As a juristic legal person, both the LLP and its partners have separate legal identity that is distinct from each other.
Perpetual Succession: LLP existence is uninterrupted, even the death or insolvency of partners cannot affect the continuity of business of the LLP.
Limited liability of partners: In LLP, all partners have limited liability similar to that of the shareholders of a limited company.
Less compliances: The statutory compliances as applicable on LLP are less as compared to a company
Documents Required by LLP
-
From Partner -
From LLP
Copy of PAN (in case of resident)
Copy of Passport (in case of non-resident)
Copy of proof of identity (Voters ID/ Passport/ Driving License)
Copy of residential proof (Bank Statement/Telephone Bill/ Mobile Bill/ Gas Bill), (Any one, not older than 2 months)
Disclosure of interest in other entities*
Consent Letter*
Copy of Sale deed/ Property Deed (in case of owned property) or Lease Deed (in case of rented premises)
Copy of Telephone or Mobile/Electricity or Gas Bill of registered office (Any one, not older than 2 months)
No-objection Certificate from the owner from the owner of the premises for its use as registered office
Subscriber Sheet*
LLP Agreement*
Time Line for Registration of LLP
Why Taxlane Corporate Services?
We have a dedicated team of professionals for providing quality services with accuracy and within given timelines. We provide a complete transparent and online platform for registration of your private limited company.
Our Limited Liability Partnership registration include:
- DSC
- DIN
- Certificate of Incorporation
- PAN
- TAN
- Drafting of LLP Agreement
- Drafting of requisite declaration(s), consent letters, etc
Get Your Customised Price
Frequently Asked Questions
How is an LLP different from other types of business?
Unlike traditional partnerships, where partners have unlimited personal liability, LLP partners enjoy limited liability protection, meaning they are not personally liable for the debts and obligations of the LLP
What are the key features of an LLP?
Key features include limited liability for partners, separate legal identity for the LLP, perpetual succession, flexibility in management and ownership, and fewer regulatory requirements compared to corporations.
What are the eligibility criteria for forming an LLP?
To qualify for registration as an LLP, the proposed organization must have at least two designated partners, one of whom must be a resident of India, and fulfill other requirements specified under the Limited Liability Partnership Act, 2008.
An LLP is governed by its partners, who are responsible for managing LLP affairs, making key decisions, and ensuring compliance with legal and regulatory requirements specified under the LLP Act and LLP agreement.
What are the reporting and compliance for LLPs?
LLPs must maintain accurate accounting records, prepare annual financial statements, file income tax returns, conduct regular audits (if applicable), and comply with other regulatory obligations under the LLP Act and Income Tax Act.
What are the advantages of becoming a partner in an LLP?
Advantages include limited liability protection for partners, separate legal identity for the LLP, flexibility in management and ownership, tax benefits, and credibility with customers and suppliers.
Can an LLP have foreign partners or engage in international business?
Yes, LLPs can have foreign partners and engage in international business activities subject to compliance with foreign exchange regulations, applicable laws, and obtaining necessary approvals.
Can an LLP convert into another type of business structure?
-
Yes, LLPs can convert into private limited companies, public limited companies, or other business structures subject to meeting certain criteria and obtaining regulatory approvals.
-
What are the restrictions on liability and management in LLPs?
LLP partners have limited liability, meaning they are not personally liable for LLP debts beyond their capital contributions, and management decisions are typically made by mutual agreement among partners.
How can I find more information about forming an LLP?
Additional information can be obtained from government websites, legal advisors, business support organizations, industry associations, and online resources dedicated to LLP formation and management.