LLP Registration Online - An Overview

Limited Liability Partnership (LLP) combines the benefits of a partnership with that of a limited liability company. In India, it took shape after January 2009 and was an instant success with startups and professional services. The idea behind LLP was to provide a form of business that is easy to maintain and to help owners by providing them with limited liability.

Benefits of an LLP

Here are the major reasons why people prefer the structure of an LLP for their business structure:

Limited Liability

The members of an LLP are only liable for a small amount of debt incurred by it. On the other hand, for proprietorships and partnerships, the personal assets of directors and partners are not protected if the business goes bankrupt.

Separate Legal Entity

An LLP is a separate legal entity from the partners in it. It has an uninterrupted existence that follows perpetual succession, i.e., the partners might leave, but the business remains. The terms of dissolution have to be mutually agreed upon for the firm to dissolve.

Flexible Agreement

Transferring the ownership of an LLP is also simple. A person can easily be inducted as a designated partner and the ownership switches to them.

Suitable For Small Business

LLPs having a capital amount less than ?25 lakhs and turnover below ?40 lakhs per year do not require any formal audits. This makes registering as an LLP beneficial for small businesses and startups.

Documents Required for LLP Registration

To register an LLP you need scanned copies of the following documents: From partners:

  • PAN card or passport (foreign nationals or NRIs) Aadhar card/ voter's ID/ passport/ driving license Latest bank statement/ telephone bill/ mobile bill/ electricity bill/ gas bill Passport-size photograph Blank document with specimen signature.

Note: One partner must self-attest the first three documents. In the case of foreign nationals or NRIs, all the documents must be notarized (if currently in India or a non-commonwealth country) or apostilled (if from a commonwealth country). For the registered office:

  • Utility bills
  • Notarized rental agreement in English
  • No-objection certificate from the property owner
  • Sale deed/property deed in English (in case of owned property).
 
     
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