Ask 4 Compliance | Limited Liability Partnership
355
page-template,page-template-full_width,page-template-full_width-php,page,page-id-355,qode-quick-links-1.0,ajax_fade,page_not_loaded,,qode-title-hidden,qode_grid_1300,footer_responsive_adv,qode-theme-ver-11.0,qode-theme-bridge,wpb-js-composer js-comp-ver-4.11.1,vc_responsive

LIMITED LIABILITY PARTNERSHIP (LLP)

Drop Your Query!

LIMITED LIABILITY PARTNERSHIP

Limited Liability Partnerships (LLP) is a type of legal business entity separate from its partners. It is often termed as a hybrid of a company and a partnership firm as it contains characteristic of both ‘a corporate structure’ as well as ‘a partnership firm structure. By Incorporating an LLP one gets the benefits of both Limited Liability Company as well as the flexibility of a partnership firm. Since it is a separate legal entity, retirement or death of a partner would not dissolve the LLP.

LLP shall have at least two Designated Partners, and at least one shall be resident in India. A body corporate can also act as designated partner through its nominee. An Individual can hold position of both partner and Designated Partners. There is no limit for maximum number of partners in LLP.

The partners of a LLP have limited liability i.e. they are not liable beyond the money contributed by them, In case of Insolvency, personal properties of the partners cannot be sold by the court to repay the liabilities of the LLP. It is suitable for small and medium enterprises due to flexibility in its structure and operation.

The name of the Limited Liability Partnerships is also protected by registration i.e, The Registrar never allow name to be registered, which are identical, similar or resembling with the existing name of an LLP. Once your LLP is registered and certificate, no other person can register another LLP with the same name.

Our team of highly qualified professionals at Ask4compliance.com can help you to establish a more organized Limited Liability Partnership (LLP) Firm to start your business in association with other partners.

Process & Timeline

8-12 days

Professional Fees

Rs. 5500

(GST, Government Fees and other Out of Pocket Expenses Extra)

Pay Now!

Find Company Name Availability

Calculate Your Fees

ADVANTAGES OF LIMITED LIABILITY PARTNERSHIP (LLP)

  • Separate Legal Entity: An LLP is a separate legal entity. This means that it has assets in its own name and can sue and be sued. Furthermore, one partner is not responsible or liable for another partner’s misconduct or negligence.
  • No Owner/Manager Distinction: An LLP has partners, who own and manage the business. This is different from a private limited company, whose directors may be different from shareholders. For this reason, VCs do not invest in the LLP structure.
  • Flexible Agreement: The partners are free to draft the agreement as they please, with regard to their rights and duties.
  • Limited Liability: The liability of the partners is limited to the extent of his/her contribution to the LLP. Unless fraud has been detected, the personal assets of the partner are protected from any liability of the LLP.
  • Fewer Compliance Requirements: An LLP is much easier and cheaper to run than a private limited company as there are just three compliances per year. On the other hand, a private limited company has a lot of compliances to fulfil and conduct an audit of its books.
  • Easy to Wind-Up: Not only is it easy to start, it’s also easier to wind-up an LLP, as compared to a private limited company. While it still takes two to three months to complete this process, it can take over a year to close a private limited company.

DOCUMENTS REQUIRED FOR INCORPORATION OF LIMITED LIABILITY PARTNERSHIP (LLP)

  • Passport size photographs of Designated Partners/Partners/Nominee: Two passport size photographs for each of the Partner (JPEG format)
  • Proof of identity for Designated Partners/Partners/Nominee: Self attested copy of Pan Card/Voters Identity Card/Aadhaar Card/Passport/Driving license.
  • Proof of residence of Designated Partners/Partners/Nominee: Self attested copy of Voters Identity Card/Aadhaar Card/Passport/Driving license/Bank Statement/Electricity Bill/Mobile Bill/Telephone Bill.
  • E-Mail id and Mobile number: For each of the Designated Partner and the LLP Firm.
  • Registered Office Address Proof
    • If Rented: Rent Agreement and utility bill likely electricity bill, telephone bill, etc. and No Objection Certificate from owner.
    • If Owned: Ownership proof, Receipt of Municipality tax paid etc. and No Objection Certificate from owner.

Free Consultation

Got questions? Request a call from an Ask 4 Compliance Business Advisor.