Limited Liability Partnership
The Limited Liability Partnership Act, 2008 introduced the Limited Liability Partnership in India. This is totally different from the other company formation norms. The good thing about the LLP is in the partnership process one partner will not be accountable for the fault of the other partner. For a business , the associated partners have the right to control the business.
Contrary to unlimited partnership, in an LLP, one partner cannot be held accountable for another partner’s negligence and misconduct. This is a salient feature of LLP and might be the biggest reason behind its rising popularity in India. In an LLP, all associated partners come together to get form of limited liability for each individual’s protection with the partnership, alike the shareholders of a business. However, unlike corporate shareholders, the partners have the authority to run the business directly. An LLP also bounds the personal liability of a partner for the faults, oversights, incompetence, or negligence of the LLP's employees or other agents. With regards to the partner’s involvement, there will be separate legal entity.
Kanoonvala has a different expertise team for LLP we make your dream business grow full-fledged. We try to give full involvement from our team members and as LLP is easy to manage.
Benefits of Limited Liability Partnership
- Famous and accepted type of business across the world
- Low cost of Incorporation
- Easy to setup
- Easy to manage
- No cap on minimum capital contribution
- No restrictions in regard to maximum number of partners
- LLP & its partners are separate from each other
- Partners are not liable for Act of partners
- Less Compliance level.
- No exposure to personal assets of the partners except in case of fraud
- Less requirement as to preservation of legal records
- Less Government Interference
- Easy to dissolve or liquidity
- Professionals can form Multi-disciplinary Professional LLP, which was not permitted earlier.
Required Documents for Limited Liability Partnership
- Pan Card
- Identity proof such as Voter Id Card
- Driving Licence
- Address Proof such as Bank statement, Mobile Bill
- Passport Size Photo
For Registered office
- Ownership Proof
- No Objection Certificate
How the Processing is done?
First Step: DIN, DSC & Name Approval 1-7 Days
Second Step: Submission of Form 2 8-14 Days
Third Step: Submission of Form 3 & 4 15 to 19 Days
Fourth Step: Certificate Of Incorporation 20 to 30 Days
QusWhat is the difference between LLP and Private Limited Company?
AnsThe LLP always have partners and the Private Limited Company does features stake holders.
QusWhat if one of the partner engages himself in any misconduct?
AnsIn case of the LLP companies the partner who is responsible for the misconduct will be punished and not the partners.
QusWhat is DPIN?
AnsDPIN is Designated Partner Identification Number is a unique number allotted to the company owners and it is valid for the life time.
QusHow to choose a name for the LLP ?
AnsThe LLP should have a name that is unique and easy to remember. It should not be a name that is already used before by any company/LLP and slso with any Trademark. Any offensive words or any word which is banned by the Government should not be used. It should be researched well before in the Google, MCA portal or guidelines and trademark site.
QusHow can someone file LLP agreement?
AnsUsing the Form 3 one can file LLP agreement.
QusHow much capital does one need to incorporate the LLP?
AnsThere is no such need to have a capital to incorporate the LLP.
QusCan a salaried person can become a partner in LLP?
AnsYes, s salaried person can also be partner in LLP.
QusCan any NRI or Foreigner be a partner in the LLP?
AnsYes NRI or foreigner can also be a partner of the LLP Registered company.