Limited Liability Partnership

LLP is an advance version of Partnership firm,

Where the partner's liability will be limited.

Personal assets and property of partners will be secured.


START A LLP

Rs. 9,999/- All Inclusive.

Limited Liability Partnership Registration

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, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP. Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct.

Requirements For Limited Liability Partnership



DESIGNATED PARTNERS

‘Designated Partner’ means a partner who is designated as such in the incorporation documents or who become a designated partner by and in accordance with the Limited Liability Partnership Agreement. Every limited liability partnership shall have at least two designated partners who are individuals and at least one of them shall be a resident in India.

PARTNER

At least 2 persons (natural or artificial) are required to form a LLP. In case any Body Corporate is a partner, than he will be required to nominate any person (natural) as its nominee for the purpose of the LLP.

Following can become a partner in the LLP:

  •  Company incorporated in and outside India.
  •  LLP incorporated in & outside India.
  •  Individual resident in & outside India.

CONTRIBUTION

In case of LLP, there is no concept of any share capital but every partner is required to contribute towards the LLP in some manner. The said contribution can be tangible, movable or immovable or intangible property or other benefit to the limited liability partnership, including money, promissory notes, and other agreements to contribute cash or property, and contracts for services performed or to be performed.

REGISTERED OFFICE

The Registered office of the LLP is the place where all correspondence related with the LLP would take place, though the LLP can also prescribe any other for the same. A registered office is required for maintaining the statutory records and books of Account of LLP. At the time of incorporation, it is necessary to submit proof of ownership or right to use the office as its registered office with the Registrar of LLP.

Documents required for company registration

Scanned copy of the following documents has to be provided by the promoters of the company

  • PAN card copy with Self attestation.
  • Voter Id copy or Passport copy or Aadhar card copy or Driving license copy with self attestation.
  • Latest Bank account statement or Mobile /Telephone bill or Electricity Bill (not older than two months)- no need for self attestation.
  • Latest passport size photo in jpeg.
  • For the registered office proof of the company, if the property is rented/ leased, then copy or rental agreement or lease agreement.
  • Copy of Electricity bill or Property Tax receipt or Water Tax receipt not older than two months.
  • Copy of No objection certificate from the owner of the property.
  • If owned property, copy of Sale Deed and Electricity bill is sufficient.
  • In case of NRI or Foreign national, Passport copy has to be notarized at the Indian Embassy of the particular country.
  • Utility bill has to be provided of the particular country where the NRI or Foreign national resides and it should be notarized.

Advantages of Limited Liability Partnership

Frequently Asked Question

  • How can apply for reserving a LLP name?

    File LLP Form No. 1 (Application for reservation or change of name) by logging on to the LLP portal along with the fee prescribed and attaching the digital signature of the designated partner proposing to incorporate a LLP.

  • Can a minor be appointed as a Partner in a LLP?

    The Designated Partners needs to be over 18 years of age and must be a natural person. Even foreign nationals can be appointed as a Partner with the approval for Foreign Contribution Promotional Board.

  • What is the time frame for registering my LLP?

    Dobizindia.com can register a LLP within 12 to 15 days of time. But the documents submitted should be as per our requirements and also within time. If there is any delay in submitting the docs the mentioned time frame may change.

  • When to use a LLP?

    LLP can provide an ideal structure for numerous businesses — not simply professional practices as is a common misconception. The only activities that cannot adopt LLP status are those that are unlawful, not intended to be profitable and which do not constitute the carrying on of a trade, profession, service or occupation.

    The essence of a LLP for practical purposes is as a vehicle to contain a partnership of any size where partners may be at risk from the careless or accidental negligence of a colleague. For example, partners in accountancy firms would be protected from personal liability if a claim was successfully pursued by a major client. Partners in a construction business would be protected if a new building collapsed, causing high level claims against them.

    Other partnerships may be tempted to use a LLP for the same reason. A LLP may also be appropriate for a partnership where some partners are not actively involved. They might have once been called "sleeping" partners. This structure will be suitable for a group of people engaging together in a property or finance venture. A LLP is unlikely to be useful for a small trading company of any sort because a conventional limited company is likely to perform an appropriate role at less cost.

  • What does limited liability mean?

    It limits personal liability of the partners of a LLP. It means that in most situations the debts and obligations of the business engaged in by the LLP are not the personal responsibility of the partners — the debts and obligations of the business can only be paid from the income and assets of the LLP. Of course, if a business operated by a LLP has financial difficulties, each partner of the LLP could lose the amount of his or her investment in the LLP, as well as the equity built up in the business. Beyond this, however, no partner risks the loss of his or her other assets and income.

  • Who can form a limited liability partnership?

    The Act generally allows two or more persons associated for carrying on a lawful business with a view to profit to form a limited liability partnership by subscribing to its incorporation document — Form 2. In law, 'person' includes individuals and companies. However, LLP are not available for all activities such as non-profit-making activities.

  • Will LLPs be available to charities?

    No. LLPs are only available to any lawful business that is carried out with a view to a profit.

  • Can Partnership firm convert itself into a LLP?

    Yes, you can convert your existing Partnership firm into a Limited Liability Partnership. The process is also very simple and not cumbersome.

4 Step Process to Register your Company

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