Limited Liability Partnership (LLP) was introduced in India by way of the Limited Liability Partnership Act, 2008. The basic premise behind the introduction of Limited Liability Partnership (LLP) is to provide a form of business entity that is simple to maintain while providing limited liability to the owners. LLP is one of the easiest forms of business to incorporate and manage in India. With an easy incorporation process and simple compliance formalities, LLP is preferred by Professionals, Micro and Small businesses that are family-owned or closely-held. The main advantage of a Limited Liability Partnership over a traditional partnership firm is that in LLP, one partner is not responsible or liable for another partner's misconduct or negligence. An LLP also
provides limited liability protection for the owners from the debts of the LLP. Therefore, all partners in an LLP enjoy a form of limited liability protection for each individual's protection within the partnership, similar to that of the shareholders of a private limited company. However, unlike private limited company shareholder, the partners of an LLP have the right to manage the business directly.
Features of LLP :
- It has a separate legal entity just like companies.
- The liability of each partner is limited to the contribution made by the partner.
- The cost of forming an LLP is low.
- Less compliance and regulations.
- No requirement of minimum capital contribution.
Benefits of LLP:
●Limited Liability Partnership (LLP) firm is a combination of partnership firm and private limited company, hence LLP enjoys benefits of both types of organizations.
●The cost of forming an LLP is lower.
●Partners have limited liabilities.
●It has a separate legal entity.
●An LLP should have a minimum of two partners but the maximum limit of partners is not specified.
●Minimum Two Person.
●One designated partner of LLP must be resident in India.
●The name of LLP should not resemble.
An LLP is taxed at a flat rate of 30% alike a partnership firm.
LLP Agreement is an agreement executed by all partners after LLP incorporation in India. The agreement prescribes all the clauses related to business, including the rights, roles, duties, and responsibilities of partners in LLP. The agreement must be filed within 30 days of the issue of a certificate of incorporation.
Yes. You can change the registered office address of the LLP after shifting office from one place to another. Such change can be recorded by entering into a supplementary agreement.
●Filling of income tax
●Filing of Annual return with MCA
●Filing of form DIR-3 KYC for all partners with MCA
●Filing of statement of accounts and solvency with MCA
Process of Registration as LLP
● Step 1: Obtain DSC(Digital Signature Certificate)
●Step 2:Apply for DIN(Director Identification Number)
●Step 3: Name Approval
●Step 4: Incorporation of LLP
●Step 5: File LLP Agreement
Documents of Partners:
●PAN Card/ ID Proof of the Partners
●Address Proof of the partners
●Residence Proof of Partners
●Passport (in case of Foreign Nationals/ NRIs)
Documents of LLP:
●Proof of Registered Office Address
●Digital Signature Certificate