What is LLP registration?

Limited Liability Partnership, The Legislature has enacted LLP Act 2008. LLP Offers more enhanced features than a general tradition partnership. It can be registered with minimum two Partners. Limited Liability Partnership provided the benefits of both private limited LLP and General Partnership into a single form of the LLP, and one partner is not liable for another partner’s misconduct or wrong decisions. Each partner will have own liability towards the Business. LLP is most preferred by a small business owners and for them who are not willing for venture funding in business. The Limited Liability Partnership has more credibility than a General Partnership or Proprietorship business. Annual maintenance of LLP firm is much cheaper than a Private limited or LLP.

 

Advantage of LLP Limited Liability

Liability of Partners of the Limited Liability firm (LLP) is limited to their Contribution in the firm. It means that if the LLP suffers from any loss and faces financial distress because of primary business activity, the personal assets of Partners will not be at risk of being seized by the bank, creditors, and government.
Continuity of existence
The life of a business is not affected by the status of Partner and even after the death of the Partner, the LLP continues to exist. An LLP being a juristic person can own a property, building, car, and any other fixed assets in its name. Partners cannot claim upon the property of the LLP
Minimal regulatory compliance

LLP is most preferable by the early stage startups for doing small business and there is no need of Audit by a Chartered account if turnover is less than Rs.40 Lac and Capital contribution is less than less than 25 lac.

 

Documents Required

From All Directors and Shareholder.

  1. PAN Card or Passport or Election ID Card
  2. Latest Bank Statement/Telephone or Mobile Bill
  3. Voter’s ID/Passport/Driver’s License
  4. Passport-sized photograph of all directors and shareholder
  5. Scan copy of Signature (signature should same as on PAN Card)
  6. Scanned copy of Notarized Rental Agreement
  7. For Proposed Registered office (Residential or commercial)
  8. Any Utility bills Scan copy of Rent agreement with NOC from owner