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Limited Liability Partnership (LLP) has become a preferred form of organization among entrepreneurs as it incorporates the benefits of both partnership firm and company into a single form of organisation.
The concept of the Limited Liability Partnership (LLP) was introduced in India in 2008. An LLP has the characteristics of both the partnership firm and company. The Limited liability Partnership Act, 2008 regulates the LLP in India. Minimum two partners are required to incorporate an LLP. However, there is no upper limit on the maximum number of partners of an LLP.
Among the partners, there should be a minimum of two designated partners who shall be individuals, and at least one of them should be resident in India. The rights and duties of designated partners are governed by the LLP agreement. They are directly responsible for the compliance of all the provisions of the LLP Act, 2008 and provisions specified in the LLP agreement.
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Here are the major reasons why people prefer the structure of an LLP for their business structure:
The members of an LLP are only liable for a small amount of debt incurred by it. On the other hand, for proprietorships and partnerships, the personal assets of directors and partners are not protected if the business goes bankrupt.
An LLP is a separate legal entity from the partners in it. It has an uninterrupted existence that follows perpetual succession, i.e., the partners might leave, but the business remains. The terms of dissolution have to be mutually agreed upon for the firm to dissolve.
Transferring the ownership of an LLP is also simple. A person can easily be inducted as a designated partner and the ownership switches to them.
LLPs having a capital amount less than ₹25 lakhs and turnover below ₹40 lakhs per year do not require any formal audits. This makes registering as an LLP beneficial for small businesses and startups.
Listed below are the documents required for the limited liability firm registration process.
Incorporating LLP Company in India is simple and easy with Filemydoc.com. Below are the steps to start Limited Liability Partnership Firm.
The LLP company registration process is easy and completely online, so you don't even have to leave your home to get your entity registered.
At Filemydoc.com, we complete the registration process in no more than 14 days.
Our LLP company registration package includes:
You need to arrange very simple documents of director like photograph, Pan card and one address proof.
No, commercial office space is not required. You can show your own residential or rented home address as the registered office address of LLP. This office address can be changed at any time after incorporation of LLP. Once your startup is set up, stable and ready to move on to a nice corporate space you can change the registered office address by informing to the ROC office.
ROC is a Government office with whom companies get registered. Every State has one ROC office except Maharashtra and Tamilnadu where there are two ROC offices.
No, Filemydoc.com provides complete online LLP Incorporation process. All legal documentation and visits are done by us.
No, Once the LLP is formed, it will be valid till it is officially closed down by the owners. No renewal or fees is required. However, every year LLPs have to file very basic returns with ROC office.
LLP Agreement is byelaws or rules based on which important matters like main business of the LLP, capital or meetings is decided. This is a standard legal document prepared by Company Secretaries during registration of LLP.
Yes, LLP office address can be changed anytime after incorporation.
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