Limited Liability Partnership (LLP) Registration
Combine the flexibility of a partnership with the corporate advantage of limited liability. The ideal structure for professionals and small businesses.
₹7,999
Starting Price
10-15 Days
Completion Time
2+ Partners
Minimum Partners
Protected
Limited Liability
What is a Limited Liability Partnership?
An LLP is a corporate business vehicle that provides the benefits of limited liability but allows its members the flexibility of organizing their internal structure as a traditional partnership. It is a separate legal entity, liable to the full extent of its assets, but the liability of the partners is limited to their agreed contribution in the LLP.
Key Advantages of an LLP
Limited Liability
Protects partners' personal assets from the liabilities of the business.
Separate Legal Entity
An LLP is a legal entity separate from its partners and can own assets.
Lower Compliance
Fewer compliance requirements compared to a Private Limited Company.
No Minimum Capital
There is no requirement for minimum capital contribution to form an LLP.
The Importance of the LLP Agreement
The LLP Agreement is the charter of the LLP, similar to the Memorandum and Articles of Association for a company. It defines the scope and extent of the LLP's operations as well as the rights, duties, and obligations between the partners.
Key Clauses in an LLP Agreement:
- Name of the LLP and its business objectives
- Details of all partners and their capital contribution
- Profit and loss sharing ratio
- Rights and duties of designated partners
- Rules for meetings, admission of new partners, and retirement
- Dispute resolution clause
Documents Required for LLP
Ensure you have these documents from all partners for a smooth registration.
PAN Cards of Partners
Address Proof of Partners
Proof of Business Address
DSC for Designated Partners
Frequently Asked Questions
What is a Designated Partner in an LLP?
Every LLP must have at least two Designated Partners, who are individuals, and at least one of them must be a resident of India. They are responsible for the regulatory and legal compliances of the LLP.
Can an existing partnership firm be converted into an LLP?
Yes, an existing partnership firm can be converted into an LLP by complying with the provisions of the LLP Act. This allows the business to retain its identity while gaining the advantage of limited liability.
Is an audit mandatory for an LLP?
An audit is only mandatory for an LLP if its turnover in any financial year exceeds ₹40 lakhs or if its capital contribution exceeds ₹25 lakhs.
How is an LLP taxed?
An LLP is taxed as a separate entity. The profits are taxed at a flat rate of 30% plus cess. The profit share distributed to partners is not taxed in their hands.