Limited Liability Partnership (LLP) was introduced in India by way of the Limited Liability Partnership Act, 2008. The basic premise behind the introduction of Limited Liability Partnership (LLP) is to provide a form of business entity that is simple to maintain while providing limited liability to the owners. Since, its introduction in 2010, LLPs have been well received with over 1 lakhs registrations so far until September, 2014.
The main advantage of a Limited Liability Partnership over a traditional partnership firm is that in a LLP, one partner is not responsible or liable for another partner’s misconduct or negligence. A LLP also provides limited liability protection for the owners from the debts of the LLP. Therefore, all partners in a LLP enjoy a form of limited liability protection for each individual’s protection within the partnership, similar to that of the shareholders of a private limited company. However, unlike private limited company shareholder, the partners of a LLP have the right to manage the business directly.
LLP is one of the easiest form of business to incorporate and manage in India. With an easy incorporation process and simple compliance formalities, LLP is preferred by Professionals, Micro and Small businesses that are family owned or closely-held. Since, LLPs are not capable of issuing equity shares, LLP should be used for any business that has plans for raising equity funds during its lifecycle.
IndiaFilings is the market leader in LLP registration services in India. In addition to LLP registration, IndiaFilings also offers a variety of business registration services like private limited company registration, one person company registration, Nidhi Company Registration, Section 8 Company Registration, Producer Company Registration and Indian Subsidiary registration. The average time taken to complete a LLP registration is about 15 – 20 working days, subject to government processing time and client document submission. Get a free consultation on LLP registration and business setup in India by scheduling an appointment with an IndiaFilings Advisor.
Features of Limited Liability Partnership
- Just Require 2 Entrepreneurs.
- More Credibility than Partnership Firm.
- Limited Liability is main feature.
- Partnership Firm’s Next Version in Simply Words.
Disadvantages of Limited Liability Partnership
- Difficult to Get VC and Angel Funds as Compare to Private Limited.
- Less Features as Compare to Pvt Ltd Company.
- Mixture disadvantages of Partnership Firm
Steps taken to Register Limited Liability Partnership in India.
Step 1- Apply for your Partners DIN
Step 2- Apply for your Parnters DSC
Step 3- Application to Govt for Name Availability of the proposed LLP
Step 4- Verification of Documents and Forms by Govt
Step 5- Filing of Incorporation Documents and Forms by Goverment
Step 6- Certificate of Incorporation
Step 7- Drafting of LLP Agreement
Step 8- Filing of LLP Agreement
- ID Proof and Address Proof for all Partners. as id proof PAN Card is Mandatory.
- latest utility bill (electric bill/telephone bill) or latest tax receipt/ownership deep of the property for the property to be used for registered office.
FAQ Series on LLP Registration
Yes, you can register your llp at your residential address.b) How much cost for the llp registration ?
Its costing nearby 8999 INR on the 2 Partners. For the Customize Pricing Place a Request .c) How many days takes for the llp registration ?
its takes minimum 10 to 15 days or more depend on state roc department.