Limited Liability Partnership

Limited Liability Partnership INR - 9,500.00

LLP is a corporate business vehicle that offers or houses together the advantage of private limited company and provides with the flexibility of partnership business as well. LLP is more flexible and lesser compliances are required as compared to private limited companies.Limited Liability Partnership (LLP) has been introduced in India by way of Limited Liability Partnership Act, 2008. The rules have been notified by the official gazette on 1st day of April in 2009. In India, first LLP was incorporated in 1st week of April 2009. LLP have different concept in comparision to limited partnership. There is no any personal liability arises in case of Limited Liability Partnership. LLP is treated like other firms for matter related to Taxations in India. The basic fact behind the introduction of Limited Liability Partnership (LLP) is to provide a form of business organization that is simple to maintain while at the same time providing limited liability to the owners. A Limited Liability Partnership (LLP) have advantages of both Company and Partnership. This works like a single form of organization and one partner is not liable for another partner's misconduct or unauthorized act or negligence. Therefore, all partners is responsible only for act done by himself. Partners have the right to manage the business directly like a corporate shareholders. An LLP also limits the personal liability of a partner for the errors, omissions, incompetence, or negligence of the LLP's employees or other agents. LLP is one of the easiest form of business to incorporate and manage. LLP shall be a body corporate and a legal entity separate from its partners. Indian Partnership Act, 1932 is not applicable to Limited Liability Partnerships (LLP). There is no any higher and lower limits regarding number of Partners in LLP. As per LLP Act it is mandatory that one of the partner to a LLP should be an Indian. For Incorporating LLP minimum 2 members are required and there is no any limit prescribed for the maximum members. LLP Act had not prescribed the minimum capital requirements by a LLP. Every partner is only liable to act done by him.

For incorporating a Limited Liability Partnership (LLP), a minimum of two person (natural or artificial) are required. A Limited Liability Partnership must have a minimum of two Partners and there is no any limit prescribed on maximum number of partner in a LLP. LLP can have a maximum of any number of Partners.

The formation of a limited liability partnership(LLP) is very simple now days and can be done completely online.

The processes incorporated are as follows:

Process 1: Eureka!!! Have an idea spanning multiple dimensions??? Then create a business model.

Process 2: Decide the partners and Designated Partner.

Process 3: Obtaining a Directors Identification Number(DIN) or Designated Partner Identification Number(DPIN)[In case you don’t have DIN] and Digital Signature Certificate for the business.

Process 4: Check name availability for LLP.

Process 5: Drafting of LLP agreement.

Process 6: Filing of incorporation documents with the Ministry of Corporate Affairs.

As per LLP Act a Limited Liability Partnership can be started with any amount of capital. LLP is not required to show proof of capital invested during the incorporation process. Partner can contribute their contribution of capital in any way like tangible, intangible assets, movable and immovable assets. They can also contribute their contribution in way like money, promissory notes and any other agreement to contribute cash or assets. If contribution has been made in the form of intangible assets the value for the same should be certified by a practicing Chartered Accountant or by a Cost Accountant or by approved valuer from the panel maintained by the Central Government.  

You only required an address in India where the registered office of the LLP is going to be situated. The premises of registered office may be for commercial / industrial / residential purposes where communication from MCA can be easily received and owner of the premises have no objection for using his/her premises as registered office. 

All the proposed Designated Partners of the LLP is mandatorily required to submit his Identity proof and address proof . PAN Card is mandatory document required for Resident Indian. In addition to above documents, the landlord of the registered office premises is required to provide a No Objection Certificate for having the registered office in his/her premises and he/she also required to submit his/her identity proof and address proof to the concerned person or authority.

Taxsigma.com can incorporate a Limited Liability Partnership in 14-20 days. The time taken by us for incorporation will depend on submission of relevant documents by the client and speed of time taken by Government for ganting Approvals. To ensure speedy incorporation, please choose a unique name for your LLP and ensure that you have submitted all the relevant documents prior to starting the incorporation process.

Once a Limited Liability Partnership is incorporated, it become active and come into existence as long as the annual compliances are met with regular basis. In case, where the annual compliances are not complied with the LLP will come into list of Dormant and maybe struck off from the register after a period of time.

LLPs are required to file an annual filing with the Registrar every year. However, if the LLP has a turnover of less than Rs.40 lakhs and/or has a capital contribution of less than Rs.25 lakhs, the financial statements of LLP is not required to be audited.

Yes, a NRI or Foreign National can become a Designated Partner in a Limited Liability Partnership after obtaining Designated Partner Identification Number. However, atleast minimum one Designated Partner in the LLP must be a Resident Indian.

Yes, As per Foreign Investments Promotion Board (FIPB), under the automatic route system Foreign Direct Investment (FDI) is allowed in LLP. However, Foreign Institutional Investors (Flls) and Foreign Venture Capital Investors (FVCIs) will not be permitted to invest in LLPs. LLPs cannot avail the facility of External Commercial Borrowings (ECBs.).

Stay hassle free by clicking on "Get Service". Get complete online Business/Taxation Services as well as Consultancy by our Expert team.