1. What is LLP (Limited liability Partnership?)
LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP is a separate legal entity and is liable to the full extent of its assets but the liability of the partners is limited to their agreed contribution in the LLP.
The LLP formation is popular when a ‘professional partnership’ would like the benefit of protected liability. This is particularly suited to accountants, architects, consultants, surveyors, and other fields of expertise where a partnership is preferred to a limited company. Within an LLP the earnings of the members are normally seen as personal income.
2. Benefits of an LLP
- No Audit Requirement-There is no audit requirement up to a turnover of less than 40 Lakhs and a capital contribution of less than 25 Lakh.
- Minimal regulatory compliance– Regulatory compliance is very less in the case of LLP as compared to the company form of entity.
- Separate legal entity-Limited liability protects the member’s personal assets from the liabilities of the business. LLP’s are a separate legal entity to the members.
- Flexibility-The operation of the partnership and distribution of profits is determined by the LLP agreement. This may allow for greater flexibility in the management of the business.
- Legal person – The LLP is deemed to be a legal person. It can buy, rent, lease, own property, employ staff, enter into contracts, and be held accountable if necessary.
- Corporate ownership-LLP’s can appoint two companies as members of the LLP. In a Private Limited company, at least one director must be a human being.
This is not an exhaustive list but covers some of the key benefits of an LLP.
3. Documents Required for LLP Registration
- Aadhar Card and PAN of all Partners
- Identity Proof of all partners (Passport, Driving License, or Voter ID Card)
- Address Proof of all partners (Bank Statement or Passbook, electricity bill, telephone bill, Aadhar Card, or any utility bill)
- Registered Office Address Proof – Electricity Bill along with NOC from the owner(if rented), or any other ownership proof of proposed registered office.
- Documents Must be self-attested.
4. Process for LLP Registration
- Share basic documents of all partners.
- Share the required information in our information requisition form – CLICK HERE
- Apply for Digital Signature and DIN of Partners
- Check the name and apply for name availability.
- Post-approval of name, we can apply for LLP Incorporation in the form-FILLIP.
LLP can be registered with any name its members choose if it is available with MCA. For Example – Udyog Buddy Advisory LLP.
At the time of registering the LLP, the members must decide if they would like the name using “Limited Liability Partnership” in full or the “LLP” abbreviation. Connect with our experts today (+91 9301789019) who can guide you for a name availability check.
- Verification of all documents and forms by the respective Government dept and authorities
- File Incorporation Docs with ROC in Form FILLIP
- Get LLP Incorporation Certificate
- Drafting of LLP Agreement
- Paying Stamp duty on the agreement as per the applicable rate and contribution by partners.
- Filing of LLP Agreement
On obtaining approval of the LLP Agreement, the process of Incorporation of LLP is complete. Check out Post Incorporation Compliances of LLP https://udyogbuddy.com/10-important-steps-after-incorporation-of-llp/
Now, What is LLP, and how it is an attractive vehicle for undertaking business in India have been viewed.
We would like to point out that our own organization is registered as an LLP – Udyog Buddy Advisory LLP.
An LLP is preferred due to its simple process for formation/unwinding and does not involve too many legal formalities. Typically, 10-15 days’ time is required for registering an LLP seeking professional expertise of team Udyog buddy, subject to government approval.
Hence, if you are looking for a simple structure of business then you must go with starting your LLP.