LLP was launched in India via the “Limited Liability Partnership Act, 2008”. The most important benefit of a “Limited Liability Partnership” is that, one partner is not liable for another partner’s misconduct or negligence. LLP is favored by Professionals, Micro and Small businesses which are family-owned or closely-held.
Limited Liability partnership offers the benefit of “limited liability” to it’s owners and at the same time it requires very minimal maintenance. The owners of a “Private limited company” have limited liability to their creditors. And in the case of a default, banks/creditors can only sell the company’s assets and not the personal assets of the directors.
An LLP also provides “limited liability protection” to the owners from the debts of the LLP. Accordingly, all partners in an LLP enjoy the benefit of limited liability within the partnership.
Why Should You Choose an LLP?
- It provides “dual advantages” of both a “Company and a Partnership”.
- No partner will be responsible for any kind of misconduct by the other partner.
- Cheaper to incorporate than a “Private limited company”.
- Limits the liabilities of it’s partners.
What type of Documents Are Required to Register an LLP in India?
Here are the listicles of mandatory documentation that are required during the registration of LLP in India;
- PAN Card/ Identification Proof of Proposed Partners: All proposed partners are mandated to furnish their PAN during registration time. PAN card serves as a fundamental ID proof.
- Partners’ Address Proof: Proposed partner furnish any one document out of passport, Voted ID, DL, or Aadhar Card. Name as well as other information as per address proof & PAN card ought to be exactly the same.
- Partners’ Residence Proof: Updated bank statement, utility bill, should be furnished as residence proof. Such bills should be the latest one, i.e. not older than 2-3 months & must entail the partner’s name as cited in PAN card.
- Photograph: Partners must furnish the latest passport size photo, preferably on white background.
- Passport (In Case of Overseas Nationals/ NRIs): To become a partner of Indian-based LLP, overseas nationals & NRIs have to furnish their passport mandatorily. Passport must be notarized by the concerned authorities in the nation of such foreign nationals and NRI, else Indian Embassy located in the nation can also sign the documents.
Foreign nationals or NRIs must facilitate address proof, bank statement, and legit identity proof enclosing the address.
If The Documents Exist In Any Other Language, The Applicant Must Facilitate The Notarized Translation Copy.
- Registered Office Address Proof: Registered office proof must be furnished during the registration process or within 30 days of incorporation.
- If the registered office is rented, a rent agreement and a NOC from the actual land owner have to be furnished. NOC shall be the landlord’s consent to permit the LLP to use the premises as a registered office’.
- Also, anyone document out of gas, electricity, or telephone bill should be submitted. The bill should not be older than two months and must reflect the address of the premise and the owner’s name.
- Digital Signature Certificate (DSC): One of the designated partners must hold DSC for signing the documents electronically.
Checklist for LLP Registration:
- Minimum of two designated partners DSC of all the partners
- DPIN of all serving partners
- Name of the entity, which is not identical to any prevailing company or trademark
- The capital contribution made by the serving partners of the LLP
- LLP Agreement
- Proof of registered office of the LLP