What is LLP

What is LLP?

Limited Liability Partnership (LLP) is a type of partnership where the liability of the partners are limited. As we know, in case of traditional partnership deeds the liability of the partners are limited. LLP was introduced after passing Limited Liability Partnership Act, 2008 in India. It is a corporate entity that has the features of both partnership and company. Even though the liability of the partners are limited, they can organise the internal structure as a partnership based agreement.

The characteristic features of an LLP includes:-

● Having a separate legal entity from its partners. It is a corporate entity that exists in the eyes of law. It is an artificial person.

● Perpetual existence,that is it will continue to exist until it is legally dissolved.

● LLP firm has a limited liability. Any partner is not liable for any wrongdoings of any other partner.

● No minimum capital is required for its formation.

● There are few compliances for it's registration as compared to company registration.

● It is easy to dissolve and does not requires much paper work for such dissolvement and also for other procedures.

What are the requirements for an LLP registration in India?

A minimum of two people are required for an LLP registration of which one of the partners must be a resident of India. However, there is no limit on the maximum number of partners in a LLP firm. The registration is compulsory for an LLP firm. There is no minimum amount of capital required in case of an LLP firm. The name of the LLP firm should be unique and end with "Limited Liability Partnership (LLP). The unique name is required to be submitted and approved by the Registrar of Companion. For the registration a mandatory DPIN (Designated Partner Identification Number) is required for all the partners.

What are the documents required for LLP?

LLP is relatively a new concept of corporate entity in India. As LLP is a hybrid, the compliances are less as compared to company registration. The documents of both the partners and the partnership firm are required to be submitted for LLP registration.

Following are the documents required for the partners:-

1. Identify proof of the partners PAN card acts as an identity proof of the partners in case of LLP Registration.

2. Address proof of partners Address proof of the partners can include documents such as Voter ID card, passport, driver's licence or Aadhar card of the partners. The information provided in the address proof and PAN card should match and in case if there is any difference, it is to be corrected by the partners before submitting it for LLP registration.

3. Residence proof of partners Bank statement, telephone bill, mobile bill, electricity bill or gas bill can be submitted as residence proof of the partners.

4. Photograph Partners are required to submit their passport size photograph for LLP registration.

5. Passport (for foreign nationals/ NRIs) Individuals from foreign countries who want to become a partner in India are required to submit their passport. The passport that is to be submitted either by the individuals who are NRIs or from foreign countries are to be signed (apostilled) by relevant authorities of those foreign countries else the Indian Embassy in such countries can also sign the documents.

Documents required for LLP by the firm Following are the documents required by the partnership firm:-

1. Proof of registered office address Address proof of the registered office is to be submitted for registration or within 30 days of its incorporation. If the registered office is rented then a rent agreement and no objection certificate from the landlord are required from submission. Electricity bill, telephone bill or gas bill is also to be submitted. The bill should contain the owner's name and the address of the office.

2. Digital Signature Certificate (DSC) Any one of the partners need to obtain a digital signature certificate as all the documents and applications will be signed digitally. With the help of these documents, one can register as an LLP firm in India. It is usually really beneficial for individuals who are looking to build up a startup.