What is a limited liability partnership?
Limited Liability Partnership is a result of a combination between the private limited company and the partnership system. As such, LLP is a partnership that comes with ceratin limited liabilities.
What are the features of limited liability partnership?
- Limited Liability Partnership is considered as separate legal entities from their members.
- The members have the facility of limited liability.
- The LLP is taxed together as a partnership.
- They have the ability to create floating charges.
Why should you register for a LLP?
- In a LLP, one partner is not liable for the action of the other partner
- Audit for the business is not required for a low turnover amount
- Property can be owned by the LLP, though the ownership cannot be claimed by individual partners
Some things that you should know
Careful drafting
A LLP agreement is considered to be one of the most important documents for a business. Therefore, it is required on the part of the directors or the shareholders to make sure that every clause in the document is drafted carefully.
Yearly compliance
As such, LLP has a easy compliance as they are considered to be separate legal entities under the law. In this case, the yearly compliance that needs to be done for the business can be done without any complication.
Unique identity
Once you register your LLP, the company will get a unique name. The business carried out by this company will be done under the name that has been provided during the time of registration.
Documents required
- PAN card of the shareholders and directors
- ID proof of the directors and the shareholders
- Passport size photograph of the directors and the shareholders
- The signed DSC form
- Latest utility bill statement for the place chosen for operating the business
- Rental agreement or ownership proof for the space
- NOC from the landlord of the office space
Process of registration
- Digital Signature Certificate and the Designated Partner Identification Number must be obtained
- Approval for the name of the company must be obtained
- The documents must be submitted for verification and the LLP agreement must be signed
- The LLP can be incorporated after document verification
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