In today's India, LLP registration is becoming a popular business entity. The key benefits of a limited liability partnership are that it has fewer statutory requirements, is a more tax-efficient company, has obligations limited to specified partners, is the best approach to construct a scalable business, and is suggested for professional service providers and SMEs.
What is a Limited Liability Partnership?
The Limited Liability Partnership (LLP) has become a popular choice among entrepreneurs since it combines the advantages of both a partnership firm and a corporation into a single entity.
In India, the concept of a Limited Liability Partnership (LLP) was first implemented in 2008. An LLP combines the advantages of a partnership firm and a corporation. In India, the LLP is governed under the Limited Liability Partnership Act of 2008. An LLP must have at least two partners to be formed. However, there is no upper limit on the maximum number of partners of an LLP.
A minimum of two designated partners who are people should be among the partners, with at least one of them residing in India. The LLP agreement governs the rights and responsibilities of chosen partners. They are directly accountable for ensuring that the provisions of the LLP Act, 2008 and the LLP agreement are followed.
Requirements for Company Registration:
- a minimum of two directors
- Copy of proposed Partners' PAN cards [Obtain Attestation from a Bank Manager or a Gazetted Officer]
- ID proof (Passport/License/Voters Driver's ID) of proposed Directors [Obtain Attestation from Bank Manager or Gazetted Officer]
- All directors must provide proof of current residence (bank statement/electricity bill/mobile bill) (Self-attested)
- Proof of the proposed Registered Office's address (electricity bill/property tax receipt, if it is a residential property)
- NOC from the owner of the above-mentioned property.
- 4 passport-sized photographs of the proposed Directors
Process of Creating a Company:
Registration of Digital Signatures
Obtaining a Director Identification Number (DIN)
Obtaining a Name from the Registrar of Companies
Partnership Agreement Drafting Deed
Filing in ROC
Obtaining an Incorporation Certificate
Why register a Limited Liability Partnership?
- It is quickly becoming a well-known business entity in India.
- This is a good way to start a scalable business.
- The tax advantages are most advantageous in this business structure. Because liabilities are limited, it can protect your personal assets.
- Investment can be brought back up to normal levels.
- Recommend for professional service providers and expanding businesses.