In the business sector, the term "LLP" refers to Limited Liability Partnerships (LLPs), which differ from Private Limited Companies and General Partnerships in terms of liability, protection, and expense. LLPs are registered in India.
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A well-known and often used corporate structure is LLP
Registration.
LLP and Private Limited corporations are both registered
with the Central Government's Ministry of Corporate Affairs. Utilize Complynest
to register your LLP and complete the LLP registration procedure.
One of the most popular forms of business for entrepreneurs
is the limited liability partnership or LLP. LLPs are the simplest type of
business organization due to the benefit of restricted liability. Limited
Liability Partnership registration in India allows partners total freedom to
create a partnership company structure in which each member's or partner's
liability is constrained to the amount of capital they contribute to the
enterprise. To be clear, with this corporate form, if the partnership fails,
creditors or investors cannot seize the partner's personal belongings,
property, or income.
What is a Limited
Liability Partnership Firm or LLP registration in India?
Compared to a partnership firm, a limited liability
partnership, or LLP, is a corporate structure with more added benefits. This
form offers partnership company responsibility to its partners at a very low
adherence cost. Additionally, the Partners of the online India LLP
registration can create an internal corporate structure that is comparable to a
partnership company.
In India, LLP registration is also regarded as a different legal entity from its members since it has the authority to transfer all of its assets while restricting the liability of its partners.A Limited Liability Partnership, or LLP, is, therefore, a cross between a corporation and a partnership firm.
The liability of the partners in LLP is limited to the point of his/her contribution to the firm. This is the most important feature of LLP as all the personal assets of its partners are safe and there is no need to pay the losses or debt of the LLP firm. Besides, innocent partners of an LLP or Limited Liability Partnership firm do not have to pay for the wrong deeds made by some other partner of the firm.
An LLP is considered as a separate legal entity. This means the firm has assets in its own name and can be sued and can sue. Moreover, not any partner is responsible or liable for another partner’s negligence or misconduct.
The partners of LLP registration firm are free to prepare and draft the agreement as they need, with regard to the rules and regulations or rights and duties.
A Limited Liability Partnership firm has partners, who manage and own the business. An llps is different from a private limited company, as its directors may be different from shareholders. Due to this point, VCs do not invest or fund in the Limited Liability Partnership firm.
A Limited Liability Partnership firm is an easier and cheaper business structure to run when compared with a private limited company as it holds only three compliances every year. But in the case of a private limited company, it should hold a lot of compliances to fulfill the provision and have to conduct an audit regularly.
Not only is it easy to start a Limited Liability Partnership firm, but it’s also easier to wind-up when compared to a private limited company. Generally, it takes two to three months to complete the winding-up process, whereas it can take more than a year to close a private limited company.
Features of LLP registration in India or Limited Liability Partnership
It considered a separate legal entity just like
other companies
The liability of the partnership of the firm is
limited to the contribution of the amount the made by partner
Less compliance
No need for a minimum capital contribution
The cost to startup an LLP is low
A minimum of 2 partners is needed to incorporate
an LLP. There is no limit on admitting the maximum number of partners.
Among the partners, a minimum of two designated
partners shall be individuals, and one of them must be resident in India
The duties and rights of designated partners are regulated and controlled by the LLP partnership agreement. They are individuals who are responsible for compliance with all the provisions of the Limited Liability Partnership Act 2008 and provisions defined in LLP agreement.
Importantly, to start your business as a Limited Liability Partnership firm, then you should get it registered under the LLP Act, 2008
|
Form Name |
Form Purpose |
|
RUN – LLP |
Form for reserving a name for the Limited Liability Partnership |
|
*FiLLiP |
Form for incorporation of Limited Liability Partnership |
|
Form 5 |
Notice for change of name |
|
Copy of Passport Form 17 |
Application to convert a firm into Limited Liability Partnership |
|
Form 18 |
Application to convert a private company or public company into LLP |
|
Forms |
Estimated Fees structure |
|
Digital Signature Certificate or DSC |
Rs.1500 to Rs.2000 as per the agency |
|
Director Identification Number or DIN |
Rs.1000 |
|
Name Reservation |
Rs.200 |
|
LLP Incorporation |
Depending on the capital contribution: Rs.500 - for the contribution of money up to Rs 1 lakh Rs. 2000 - for the contribution of money up to Rs 1 Lakh to Rs 5 lakh |
|
LLP Agreement |
Depending on the capital contribution and stamp duty charges of the state where you register LLP. |