Decoding Limited Liability Partnership (LLP)

What does LLP mean?

Limited Liability Partnership came into being after the passage of the Limited Liability Partnership Act, 2008. LLP is similar to a General Partnership but it differs from the latter because its owners, unlike those of partnerships, do not have unlimited personal liabilities, for instance, in case of losses, debts and court judgments. Each LLP partner does not have to account for the carelessness, wrongdoings or incompetence of the other partners.

When compared to Private Limited companies, LLPs do not enjoy wider acceptability across the world. While a Limited Liability Partnership Registration in India is less expensive than a Private Limited organisation, an LLP finds it difficult to raise funding and offer employee stock options. So, in case you're hoping to raise investment, your best bet is to go for a Private Limited structure. LLP format is more suitable for a firm comprising professionals such as website designers, engineers, accountants or CAs) who do not require equity funding.

Process for LLP Registration

Stage 1: Operational day’s required- 6

DSC and DIN are essential for all the proposed partners of the LLP. You will just need to give photocopies of your personal identification documents. Our team will ensure that all the prescribed forms are filled appropriately.

Stage 2: Operational day’s required-12

We will help in the selection of your LLP’s name, which should be unique and in tune with business of your firm. We will help and guide you through the LLP name accessibility check. Subsequently, we will ensure the incorporation of your company’s name with the Ministry of Corporate Affairs (MCA), which will issue the Certificate of Incorporation after the completion of this procedure.

Stage 3:  Operational days required - 2

We will complete online application for the issuance of registered Permanent Account Number (PAN) and Tax Account Number (TAN) of your LLP. At the same time, you need to courier the documents to MCA. You will get your PAN and TAN delivered to your office address by registered post/courier within 21 working days.

Documents required LLP for Registration

LLP partners need to submit the scanned copies of the following documents:

• PAN Card or Passport (Foreign Nationals and NRIs)
• Voter's ID/Passport/Driver's License
• Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
• Passport size photo
• Specimen signature (blank document with signature [partners only])

FOR THE REGISTERED OFFICE

The scanned copies of the following documents are required:

• Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
• Notarized Rental Agreement in English
• No-objection Certificate from property proprietor
• Sale Deed/Property Deed in English (in case of possessed property)

Note: Your registered office requires not be a business space; it can be your living area, as well.