An Overview of Limited Liability Partnership (LLP)

Limited Liability Partnership (LLP) is mainly opted by small and medium-sized business entities. The entrepreneurs under LLP can avail of Private Limited company like benefits but at the same time with ease of compliance. Limited Liability Partnership is governed under the Limited Liability Partnership Act, 2008. An LLP organization has a mix of features of both the company and the partnership firm. It might be why entrepreneurs prefer LLP as the type of organization they want their entity to be. The minimum number of partners needed for the incorporation of an LLP is two, who are individuals, and at least one of them is a resident of India. However, there is no upper limit on the requirements of the maximum number of
partners.

We at Taxrepair have expertise in getting the Limited Liability Partnership registration seamlessly. Our team of professionals ensures that they are up to speed with any latest development in the laws and help entrepreneurs to get their company registered perfectly.

Documents Required for Registering a Limited Liability Partnership

For Partners

• PAN Card scanned copy (Mandatory)
• Scanned copy (for ID Proof):
• Aadhar card
• Passport
• Voters ID
• Driving license
• Scanned copy. (Not older than two months, preferably the latest one) (used for Address Proof):
• Latest bank statement
• mobile or telephone bill
• gas or electricity bill
• Passport size photograph
• DPIN (Designated Partner Identification Number)
• DSC: Digital Signature Certificate
• Passports if the partner is an NRI or foreign national. Relevant authorities should notaries the copy of the passport in the country of the NRI or the foreign national. Otherwise, they can get it notarized through the concerned officials at the Indian embassy of the country the partner resides.

For Registered Office

• The latest No-objection Certificate (NOC) scanned copy from the property owner if the registered office is on leased or rented property.
• Scanned copy (Not older than two months, preferably the latest one) (used for Address Proof):
• Latest bank statement
• mobile or telephone bill
• gas or electricity bill

Benefits of Registering a Limited Liability Partnership

Minimum Capital Contribution not needed

An LLP can be formed without any minimum capital requirement. Moreover, the partners can contribute capital in the form of movable and tangible assets like machinery, land as well as through immovable and intangible assets. Thereby, an LLP can be incorporated with the least required capital as per the capability or desires of the partners.

Incorporation and Compliance is Inexpensive

Incorporating an LLP is relatively inexpensive when compared with the incorporation cost of a private limited company or a public limited company. Furthermore, an LLP has to file annually only two statements, namely, Annual returns and a Statement of accounts and solvency.

No Mandatory Audit

The Ministry of Corporate Affairs (MCA) has recognised LLP as a flexible entity; thereby, they have removed the mandatory audit requirement for LLP. Instead, the business will conduct an audit only when the contribution exceeds Rs. 25 lakhs or the turnover of the LLP is more than 40 lakhs. The audit is optional if the LLP doesn’t fall into the criteria.

Appropriate for Small & Medium-Sized Business

As mentioned earlier, an LLP with a capital contribution of less than 25 lakhs or a turnover of less than Rs 40 lakhs does not need a mandatory audit, making this type of organisation structure ideal for small and medium-sized businesses.

Limited Liability

The partners of an LLP enjoy limited liability, i.e. their liability is restricted to the amount of capital they gave at the time oincorporation. So, if the LLP becomes insolvent, then the assets of the LLP will be used to clear off the debts, and the partners of the LLP do not have any personal liabilities towards it.

Timelines for Registering the Company

From obtaining the DSC till the filing of Form 3, the registration of the LLP will take approximately 15 days, subject to the approval and the subsequent revert from the concerned department.

Our team at Taxrepair are experts in getting the Limited Liability Partnership registration. So join hands with us to start your entrepreneur journey as an LLP and get the benefit of both a limited liability company and a partnership firm.