Limited Liability Partnership

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Overview of Online Limited Liability Partnership (LLP) Registration in India.

A limited liability Partnership is a hybrid of a partnership and a company combined into a single organisation. It is a formal partnership between at least two business partners. Each of the business partners has limited liability, which means that they are not responsible for any losses, debts or liabilities of the business.

In recent times, Limited Liability Proprietorship or LLP has become one of the preferred forms of business registration as it has elements of both a partnership firm and a private company to benefit from.

Why one should go for Limited Liability Partnership (LLP) Registration in India?

Wondering why you should choose LLP over other business registrations? Take a look:

Easy & Quick To Set Up: Setting up an LLP is a simple process. It doesn't have any complicated steps and requirements and it doesn't take months of waiting time. The minimum amount of fees for setting up an LLP is INR 500 and the maximum that can be spent is INR 5,600.

Continuity In Succession: the life of the LLP is not affected by the death or retirement of any of the partners. If any of the partners retires due to any reason, it does not mean that the LLP will be dissolved. An LLP can only be dissolved under the provisions of the Limited Liability Partnership Act, 2008.

Limited Liability: all partners of the LLP have limited liability, which means that the partners are not liable to pay the debts of the partnership out of their personal assets. No partner is responsible for the misconduct or wrongdoing of another partner.

Streamlines Management: all major decisions and management activities in an LLP are handled by the board of directors, so partners are given very little power in decision making.

Hassle-Free Transfers: There are no restrictions on joining and leaving an LLP. One can easily join as a partner and transfer ownership to others.

Tax Advantages: An LLP is exempt from various taxes like dividend distribution tax and alternative minimum tax. Also, the tax rate is lower as compared to other types of business.

No Mandatory Audit Requirements: There is no mandatory audit requirement for an LLP until the business exceeds the annual turnover of INR 40 lakhs.

Fees for Limited Liability Partnership (LLP) Registration in India?

Time required for Limited Liability Partnership (LLP) Registration in India?

Process of establishing a Limited Liability Partnership (LLP) in India.

Once the founders of the LLP finalize the name of the LLP. Then the process of incorporation of Limited Liability Partnership starts as below (Note: Name of the LLP can be different from the brand name; it is not mandatory to have the same brand name as an LLP name)

Step 1: Application for DSC (Digital signature certificate) and DIN (Directors Identification Number) for the partners

Step 2: Apply for the Name reservation

Step 3: Drafting & filing LLP agreement to register the Limited Liability Partnership

Step 4: Apply for the PAN and TAN of the LLP

Step 5:Issue Certificate of Incorporation along with PAN and TAN of the LLP

Difference between Limited Liability Partnership (LLP) and Private Limited Company

Let us now consider some essential points of difference between these two popular forms of business.

Frequently Asked Questions on Limited Liability Partnership (LLP)

Individuals, companies or foreign nationals can become partners in a Limited Liability Partnership.
Yes, you can convert a partnership firm to an LLP instead of registering for a new LLP.
Yes, there are procedures for converting a partnership firm into a company or an LLP at a later date. However, the procedures for converting a partnership firm into a company or an LLP are cumbersome, expensive and time consuming. Therefore, it is wise for many entrepreneurs to consider and incorporate an LLP or company instead of a partnership firm.
A Limited Liability Partnership is a legal entity that is separate from its partners and therefore provides limited liability to its partners, with any debts and obligations of the LLP being borne by the assets of the LLP. In the case of a conventional partnership, the partners are jointly and severally liable for any debt and obligation of the partnership firm.
Yes, as an employed person you can become a partner in an LLP. But you need to make sure whether your employment contract allows for such provisions. In most cases, employers are happy with the fact that their employee is a director in another firm.
DAILY TAX ANALYSIS provides LLP incorporation services in all Indian cities. We have done LLP registrations in Mumbai, Delhi, Gurgaon, Noida, Bangalore, Chennai, Hyderabad, Ahmedabad, Kolkata, Surat, Pune, Jaipur, Lucknow, Kanpur, Nagpur and various other Indian cities

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