A Limited Liability Partnership (LLP) is a combination of a Partnership Firm and a Private Limited Company in which the owners have a limited liability. It was introduced in India under the Limited Liability Partnership Act, 2008. The primary benefit of incorporating a business as a Limited Liability Partnership is that in an LLP, one partner is not responsible or liable for another partner's misconduct or negligence.
An LLP also provides limited liability protection for the owners from the debts of the LLP. An LLP has a separate legal identity from its members and shareholders and involves lesser compliance requirements as compared to a company. Unlike a Private Limited Company, the partners of an LLP have the right to manage the business directly.
The process to register a Limited Liability Partnership includes obtaining the Digital Signature Certificate (DSC) & Director Identification Number (DIN), creating and filing of documents with RoC and filing of application for PAN & TAN. It takes around 15-20 days to fulfil all the legal requirements to incorporate an LLP in India, subject to the time taken by government authorities to process the application.
The documents required to register an LLP include:
- PAN card- All Directors
- ID Proof (Aadhar card/DL/Voter ID)- All Directors
- Permanent address Proof (Bank Passbook-front page/Latest utility bill)- All Directors
- Address Proof of proposed Registered Office of company
- If taken on rent then NOC with a utility bill from the owner
- If not taken on rent or owned by any other entity then NOC signed by the owner
- If owned by Director, then sale deed with the electricity bill
- Passport size photograph-All directors
- Main objects of the proposed company in detail
- Four names of the proposed company as per preference
- Significance of names of the proposed company
- Profitability Ratio (i.e. Contribution by each partner)
- Signed LLP agreement & other forms (Format provided)