LLP refers to Limited liability partnership and is governed by Limited Liability Partnership Act 2008. Limited Liability partnership provides advantage of limited liability to its owners and at the same time requires minimal maintenance. The directors of a private limited company have limited liability to creditors. In case of default, banks / creditors can only sell companys assets and not personal assets of directors. LLP Registration can be done through White Code Legal.
LLP can be preferred as it has Dual advantages- Company and a Partnership, there are no partner will be responsible for other partners misconduct, it is cheaper to incorporate than a private limited company there are limits to liabilities of its partners.
1) Complete the LLP form
2) Receive DSC and DPIN for LLP
3) LLP verification and approval of the name.
1) Minimum 2 Partners
2) No Capital Requirement
3) At least one Designated Partner as Indian Resident
4) DPIN for all Partners
5) Separate Legal Entity
6) Uninterrupted Existence
7) Audit not Required
8) Easy Transferability
9) Owning Property
10) Limited Liability