Limited Liability Partnership is the most preferred type of partnership firm by businessman due to simple business structure and the benefit of limited liability. In this, the liability of each partner is limited to the amount they contribute to the business. The advantage of LLP is that creditors cannot seek a partner’s personal property or income. The upside is no partner is responsible for the losses, negligence, or misconduct of any other partner. As partners have limited and not all responsibility, this is known as a Limited Liability Partnership. Partners possess the rights to manage the business, unlike shareholders. Due to these characteristics, LLPs have aspects of both corporations and partnerships.

In short, LLP incorporates the benefits of both partnership firm and company into a single form of organization. It has a different legal entity the same as companies. The cost of incorporating an LLP is low, along with less compliance and regulations and no requirement of minimum capital contribution.

The minimum number of partners with one resident in India and needed to incorporate an LLP is two with no upper limit. The rights and duties of partners are regulated under the LLP agreement and are responsible for compliance with the LLP Act 2008. Registration under the Limited liability Partnership Act, 2008 is necessary to start a business with a Limited Liability Partnership.

Steps of LLP Registration

Process of registration as LLP involves obtaining Digital Signature Certificate (DSC), Apply for Director Identification Number (DIN), Reservation of Name and Name Approval, Incorporation of LLP, and File LLP Agreement.

Documents required to register as LLP include documentation of Partners as well as LLP.

• Documents of Partners: Partner documents include PAN Card/ ID Proof of the Partners, Address Proof of the partners, Residence Proof of Partners, Photograph, Passport (in case of Foreign Nationals/ NRIs)
• Documents of LLP: LLP documents include Proof of Registered Office Address, Digital Signature Certificate, Documents of Partners, Proof of Registered Office Address, Digital Signature Certificate Cost Involved in Registration Process

LLP incorporation from getting DSC to Filing Form-3 takes approximately 15 days subject to availability of all the documents. Registering for LLP costs from Rs. 2500 – Rs. 6000 based on the number of partners and capital contribution. The minimum number of members should be 2, whereas there is no upper limit of LLP members. In short, a Limited Liability Partnership (LLP) is a type of business offering twin features of ‘partnership’ and ‘company’ business structures.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.