LIMITED LIABILITY PARTNERSHIP

Limited Liability Partnership is defined in Limited Liability Partnership Act 2008 as “a partnership formed and registered under this act”. It means a partnership will be called as Limited Liability Partnership (LLP) if such partnership is registered under Limited Liability Partnership Act 2008.

The key advantage of an LLP over a partnership firm is that partners are not liable for the misconduct of other partners. LLP also offers its partners the safety net of limited liability. Unlike the shareholder of a Private Limited Company, partners of an LLP can directly manage the business, which makes LLPs an attractive proposition for business incorporation.

Businesses that have no requirement for equity funding in their lifecycle should opt for Limited Liability Partnership as equity shares cannot be issued by LLPs. However, where there is a need for businesses to attract equity funding then Private Limited Companies are a better option as compared to LLPs. Examples of such businesses are closely held firms offering professional services such as architects and other professional services.

Advantages of Limited Liability Partnership Registration

• Separate Legal Entity.
• Limited Liability of Partners 
• Perpetual Existence 
• No Ownership Distinction 
• No Audit requirement
• Flexibility in Agreement 
• Property Ownership 
• Lesser Compliance Required 

Checklists of documents required for Registration of Limited Liability Partnership (LLP) For Partner /Nominee:

• Self-attested copy of PAN card.
• Self-attested copy of Passport.
• Self-attested copy of Voter ID.
• Self-attested copy of Driving license.
• Passport size photographs.

Address Proof:

• Self-attested copy of Telephone/Mobile or Electricity bill (Current Month).
• Bank Account Statement (less than 2 months old)

Others:

• Signed LLP Agreement.

For Registered Office; Company Address Proof:

• Telephone/Mobile/Electricity/Gas bill (Less than 2 months old).
• In case of rented premises a notarized copy of Rent Agreement with a No-Objection Certificate (NOC) for conducting business.
• In the case of self-owned premises registered title document.

Following details will also be required for every Designated Director of LLP (Documents will not be required)

• Email ID and Mob no.
• Educational Qualification details
• Occupation type- Professional/businessmen
• No. of years of living at a place for which address proof submitted

Minimum Requirement for Limited Liability Partnership

• A minimum of 2 Designated Partners.
• A minimum of 1 Designated Partner to be Indian Resident.
• LLP office address proof.
• DPIN (Designated Partner Identification Number) for ALL Partners.
• DSC (Digital Signature Certificate) for ALL Designated Partners.
• A natural person must be nominated in case LLP’s partner is a corporate.
• No minimum requirement of capital but every partner must mandatorily contribute towards LLP capital.

Process for Registration of Limited Liability Partnership:

Registration of LLP is almost similar to registration of company, incorporation formalities of LLP is be complete with ministry of Corporate affairs (MCA). Following process to be followed for incorporation/registration of LLP:

1. Name approval of LLP
2. Preparation of Limited Liability Partnership Agreement on appropriate Stamp paper of relevant State
3. Filing of forms and submission of Limited Liability Partnership Agreement
4. Obtaining of LLP Incorporation Certificate