Legal Chalo provides Limited Liability Partnership registration in India and offers free consulting. Let us know exactly what LLP is about. LLP stands for limited liability partnership. Limited liability partnerships have been introduced in India by way of the Limited Liability Partnership Act, 2008. The basic premise behind the introduction of limited liability partnerships (LLPs) is to provide a form of business organization that is simple to maintain while at the same time providing limited liability to the owners.

A limited liability partnership Registration in India combines the advantages of both the company and partnership into a single LLP registration form of organization and one partner is not responsible or liable for another partner’s misconduct or negligence.

Therefore, all partners have a form of limited liability partnership registration in India for each individual’s protection within the partnership, similar to that of the shareholders of a corporation. However, unlike corporate shareholders, the partners have the right to manage the business directly. An limited liability partnership firm registration also limits the personal liability of a partner for the errors, omissions, incompetence, or negligence of the LLP’s employees or other agents. An LLP partnership agreement is one of the easiest forms of business to incorporate and manage.

Features of Limited Liability Partnership Registration in India:

(1) Separate Legal Entity:

Like a company, a limited liability partnership registration in India also has a separate legal entity. Therefore, partners and the LLP firm registration are distinct from each other, like a company, where a company has a legal entity separate from its shareholders.

(2) Minimum Capital:

The minimum capital of a register LLP in India is not specified. Thus, partners in the LLP decide how much capital will be contributed by each partner.

(3) Minimum Number of Members:

A LLP company registration in India can be established with at least two members who shall also be designated partners and shall have a Director Identification Number (DIN). There is no limit on the maximum number of partners. Members other than the designated partners are required to have a Director Identification Number (DIN).

(4) Audits are not mandatory:

All companies, whether private or public, are required to get their accounts audited. However, audits of the LLP’s books of account are not mandatory except:

(a) If the contributions of the LLP exceed Rs. 25 lakh.

(b) If the annual turnover of the LLP exceeds Rs. 40 lakh.

Documents for Limited Liability Partnership Registration in India:

(1) Photos of all partners in the partnership firm.

(2) A copy of the PAN card of all partners.

(3) A copy of the Aadhaar card of all partners.

(4) Email IDs of all partners.

(5) The mobile number of all partners.

(6) Electricity bill of firm address.

(7) A copy of the bank statements of all partners.

Advantages of LLP Registration in India:

(1) It is more flexible, as compared to a company, to organize its internal structure.

(2) There is no maximum limit for the number of partners in an LLP. In a private limited company, the number of shareholders is limited to 200, excluding past and present employee shareholders.

(3) Raising and utilizing funds depends on the partners’ will as against norms prescribed in the Companies Act, 2013 as applicable to companies.

(4) The liability of partners is limited to their contribution, as opposed to the liability of partners being unlimited in the case of a normal partnership. However, the LLP Agreement is prepared in the same manner as a partnership deed.

Disadvantages of LLP Registration in India:

(1) Any act of the partner without the knowledge of other partners may blind the LLP.

(2) LLP cannot raise money from the public.

(3) Venture capital firms generally prefer not to invest in LLPs. Private Limited is preferred over LLP.

External Government Website Link: MCA