Limited Liablility Partnership LLP

LIMITED LIABILITY PARTNERSHIP

UNDER A LIMITED LIABILITY PARTNERSHIP (LLP), TWO OR MORE PARTNERS FORM A SPECIAL PARTNERSHIP WITH LIMITED LIABILITIES.

PURPOSE

When deciding on the suitable business structure, it is crucial to compare and consider the differences and benefits of Private Limited Company registration and LLP. This evaluation helps in making an informed choice based on the specific requirements of your business model. One of the key advantages of registering as an LLP is the concept of limited liability. Unlike proprietorship and partnership, the personal assets of LLP members are safeguarded in case of business insolvency. This limited liability feature provides an added layer of protection and minimizes the financial risk associated with the business.

DOCUMENTS REQUIRED

Scanned copy of PAN Card or Passport (For foreign nationals & NRIs)
Scanned copy of Aadhar Card/Voter's ID/Passport/Driver's License
Scanned copy of the latest bank statement/telephone/mobile bill or electricity/gas bill
Scanned passport-sized photograph
Specimen signature (blank document with signature for parents only)

STEPS INVOLVED

Obtaining DSC (Digital Signature Certificate) and DIN (Director Identification Number)

Application for Name Approval

Drafting and execution of LLP Agreement

LLP Incorporation Certificate

Applying for PAN & TAN (Permanent Account Number and Tax Deduction and Collection Account Number)

Opening a Bank Account

FREQUENTLY ASKED QUESTIONS

WHAT IS THE ELIGIBILITY OF DESIGNATED PARTNERS/PARTNERS IN AN LLP?

Any individual, company, or LLP can become a partner in an LLP. However, only individuals can become designated partners.

I AM AN NRI. CAN I START AN LLP BUSINESS IN INDIA?

Yes, non-resident Indians and foreign nationals can start an LLP business in India. They need to submit the necessary documents, duly notarized by the relevant authorities. It is important to note that at least one designated partner in the LLP should be an Indian national.

WHAT ARE THE RULES FOR STARTING AN LLP?

An LLP can be started by a group of individuals or entities willing to invest in a business. According to the LLP Act of 2008, individuals or investors become partners based on the LLP agreement. The partners are the owners of the business established under the LLP structure.