LLP REGISTRATION
Limited Liability Partnership (LLP) registration offers an alternative business structure that combines the advantages of limited liability with the flexibility of a partnership firm. It is a legal entity liable to the full extent of its assets. This distinctive business formation was introduced in the Indian corporate sector by the Limited Liability Partnership Act of 2009. It is particularly well-suited for small and medium-sized enterprises and is one of the easiest business structures to incorporate. A minimum of two partners is required to establish an LLP, with no upper limit on the number of partners. In an LLP, one partner is not held accountable for the misconduct or negligence of another partner. The rights and duties of the partners are governed by an agreement signed between them. An LLP cannot issue equity shares, making it unsuitable for raising equity funds from various categories of investors.
BENEFITS OF LLP :
Understanding your proposed business model is crucial before deciding between a Limited Liability Partnership (LLP), Private Limited Company, Partnership Firm, or Proprietorship Business. An LLP should not be selected for businesses intending to raise equity funds from Angel Investors, Venture Capitalists, or Private Equity. However, it is a preferred business structure over proprietorships or partnerships, as it protects the personal assets of promoters and partners in the event of business bankruptcy.
Separate Legal Entity: A Limited Liability Partnership (LLP) is a distinct business entity separate from its partners. It ensures perpetual succession, meaning the business continues despite changes in partnership. As a recognized juristic person, an LLP can own or acquire property independently of its partners.
Simplicity: Compared to the formation and operation of a Private Limited Company, establishing and running an LLP is significantly simpler and more straightforward. Ownership transfer is also easy, and there is no minimum capital contribution requirement for an LLP in India.
Suitable for Small Business: LLPs with an annual turnover below ₹40 lakh and capital contribution below ₹25 lakh are exempt from formal audits, making them ideal for small businesses and startups. Additionally, compliance requirements for an LLP are much simpler compared to those for a Private Limited Company.
Our Process
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KEY BENEFITS OF LIMITED LIABILITY PARTNERSHIP FIRM (LLP)
Better Image and Credibility in the Market: Limited Liability Partnerships (LLPs) are widely recognized and preferred by corporate clients, vendors, and government agencies over sole proprietorships and traditional partnerships.
Benefit of Central Registration: LLPs benefit from central registration under the Ministry of Corporate Affairs, allowing them to open branches or bank accounts anywhere in India, unlike partnership firms that are registered under state governments.
Limited Liability Protection: In an LLP, partners have limited liability for the business’s debts, ensuring that their personal assets are protected in the event of bankruptcy.