LIMITED LIABILITY PARTNERSHIP STARTING & REGISTERING IS BUSINESS IS AN IMPORTANT STEP IN AN ENTREPRENEURS JOURNEY. CHOOSING THE RIGHT FORM OF BUSINESS IS EQUALLY IMPORTANT. HERE, WEâ€™LL GUIDE YOU ON LLP REGISTRATION - WHAT IS AN LLP, WHY SHOULD YOU GO FOR AN LLP, THE REGISTRATION PROCESS, DOCUMENTATION AND REQUIREMENTS.
WHAT IS LLP? A limited liability partnership or LLP is a form of partnership in which the partners have limited liability. In simpler terms, this means that you can have 2 or more than 2 partners in an LLP. Also, the partners are not liable to pay for the firms debts or creditors from their personal assets. This is a big advantage over normal partnership firm where partnersâ€™ personal assets like home & car can sold to repay firm debts. LLP gives the double benefits of both a Company and a Partnership in a single form of organization where any one partner is not responsible for another partnerâ€™s misconduct or negligence.
WHY SHOULD YOU GO FOR AN LLP ? There are less compliances and government issues.
There is no maximum limit for the no. of partners in LLP.
LLP has no minimum capital requirement. You can start your business with as low as Rs. 5,000
Easy to dissolve or wind-up.
Easy to establish, manage & run.
LLP limits your liability. All of the risks of the business are spread out.
They only reason you shouldn’t choose an LLP is – in case you intent to raise capital from VCs and investors. Investors prefer to put money in Private limited company as it’s easy to redistribute shares in that form of business.
LLP REGISTRATION PROCESS? • First of all the partners have to apply for Digital signature and DPIN . • After that, you have to register for name approval. Name for the company should be unique otherwise the application would be rejected. • After that you have to file for subscription statement and incorporation document. • Apply for PAN and TAN • At the end you have to prepare a LLP agreement and file with MCA
It typically takes 15- 25 days to form an LLP.
DOCUMENTS REQUIRED FOR LLP REGISTRATION? You will need basic set of documents to apply for LLP. This includes • PAN Card copy of Partners • Copy of Aadhaar Card or Voter identity card
• Passport size photograph of partners • Property papers copy (If owned property) • Rent agreement copy & Landlord NOC(If rented property) • Electricity/ water bill of business place
Requirements for LLP Registration • Minimum 2 Partners
• No Capital Requirement- you can start your company with just Rs 5000. • At least one Indian Resident as Designated Partner • DPIN for all Partners
HOW TO REGISTER YOUR LLP USING LEGALRAASTA?
We at LegalRaasta have helped over thousand companies in LLP registration. To get your LLP done from us, you can • Go to our website www.legalraasta.com and select LLP registration. • Fill our online questionnaire. • Select your package. You can choose for additional services like trademark and salestax registration and pay accordingly. • We will take care of the rest. Hope this was helpful. Thanks.