A Limited Liability Partnership (LLP) is a kind of partnership firm in which the liability of the partners are limited, Unlike the traditional partnership firms.
The LLP Act, 2008, Governs the provisions of Limited Liability Partnership in India.
The LLP is an combination of the ease of a partnership firm along with the advantages of limited liability of a company.
This type of business structure is very useful for small and medium enterprises as it involves law compiance cost as compared to the companies.
Some of the key features of LLP are as mentioned below:
- Like the traditional partnership firms and companies an LLP is also a separate legal entity distinct from its parteners.
- Any two or more persons can register a LLP in order to carry on a lawfull business for profit making.
- The rights and duties of the partners of the LLP shall be governed by an agreement called LLP agreement executed between the partners.
- Atleast one partner of the LLP shall be resident in India
- An already registered firm, private limited company or an unlisted public company is allowed to be converted into LLP according to the provisions of the Act.
- The provisions of the Indian Partnership Act, 1932, doesnt apply to the Limited Liability Partnerships.
The registration procedure of LLP usually takes around 15 days.
An application with the required documents along with the prescribed fee in the prescribed form is to be made to the registrar of companies for registration of the Limited Liability Partnership.
Following is the list of documents/information required for the registration of LLP in India:
- Suggested names of the LLP
- Passport photographs, PAN, Address proof of all the partners
- Proof of registered office of the LLP
- Objects of the LLP
- Profit/loss sharing ration amongs the partners
- Capital introduced
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