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 favored by Professionals, Micro and Small businesses that are family-owned or closely-held.
Minimum two people are required to form LLP and there is no limit on maximum number of partners.Partners are decided during incorporation of the company and later can increase in number after fulfilling specific conditions to become a partner.
Advantages Of LLP
- It is a separate legal entity
- Dual advantages- Company and a Partnership
- LLP has perpetual succession
- No partner will be responsible for other partner’s misconduct
- No mandatory requirement of statutory audit upto a certain limit.
- LLP requires less disclosure and compliance requirement is less as compare to other entities
- Limits the liabilities of its partners
Documents Required
- Copy of Aadhaar Card/ Voter identity card
- Copy of PAN Card of partners
- Passport size photo of partners
- Proof of business address(Electricity/ Water bill of Business Place)
- Copy of Sale/Property Deed (If owned property)
Process
- First, you need to apply for a Digital Signature Certificate for your limited liability partnership. This is nothing but an E-signature to help you complete your registration process online
- Application of DIN (Director Identification Number) and DPIN ( Designated Partner Identification Number)
- next step is choosing a good name for your Limited Liability Partnership and approval with ROC
- Once the name is approved, one requires to draft Memorandum of association and Articles of Associate. Both MOA and AOA are registered with the MCA with the agreement statement.
- Get Incorporation Certificate of LLP
- Appeal for PAN, TAN
- Register for LLP Agreement : LLP agreement oversees the mutual rights and duties between the LLP and its partners.LLP agreement must be registered in Form 3 which is to be filled in 30 days of the date of incorporation