An LLP or Limited Liability Partnership is a unique mode of doing business. This is because it offers a combination of the flexibility of a partnership and limited liability of a company. In India, you can set up your business as an LLP under the Limited Liability Partnership Act, 2008.
Features of LLP
Below are some salient features of an LLP.
- It is a corporate body.
- It is a legal person and therefore, separate from its partners.
- There is perpetual succession to the business.
- It needs at least two partners as well as two designated partners.
- Both designated partners must be individuals only.
- At least one designated partner must be a resident of India.
- Winding up may be either voluntary or may be initiated by a Tribunal/High Court.
- The Indian Partnership Act does not apply to an LLP.
- The Central Government can apply provisions of Companies Act to an LLP.
Benefits of LLP
A limited liability partnership is the most preferred method for doing business these, especially in case of startups. Some benefits of a limited liability partnership are:
- There is limited liability.
- There is no Limit on the number of members.
- Ownership is easy to transfer.
- It enjoys a perpetual existence. This means that it continues functioning even if members leave or join the business.
- Tax Benefits such as exemption from tax on distributing the dividend.
- Compliance requirements are less burdensome than other businesses.
- Cost of incorporation is low.
- It is easy to start as well as to maintain.
Documents for Registration of LLP
For registering your limited liability partnership, you need the below documents and details.
- Designated Partner Identification Number (DPIN) or Director Identification Number (DIN).
- E-mail address as well as the contact number of the applicant of DPIN or DIN.
- ID proof as well as address proof of all the applicants of DPIN or DSC.
- Passport as a proof of identity, if the applicant is a foreign national.
- Digital Signature Certificate (DSC) of partner or designated partner.
- PAN cards of all the partners.
- Address proof of all the partners.
- Proof of registered address of the business, such as telephone bills, water bill, or electricity bills.
- A No Objection Certificate (NOC) from the landlord of business premises.
- Proposed name of the limited liability partnership.
- LLP agreement.
After successful verification of all details and documents, a Limited Liability Partnership will receive approval for its LLP agreement.
Fee for Registration of LLP
The government fee starts from Rs. 1700 and the professional fee starts from Rs.3300.
Timeline for Registration of LLP
We will start processing your registration within 2 business days of receiving all relevant details from your end. Further, the government process usually takes anywhere between 30-35 business days. But this is subject to the approval of name as well as other documents by the government authorities.
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