Limited Liability Partnership
LLP Registration in India has become an alternative form of business that provides the advantages of a Company and the flexibility of a Partnership firm into a single organization. The Concept of LLP in India was introduced back in 2008 by the Limited Liability Partnership Act of 2008. This unique hybrid is suitable for setting small, medium-sized businesses.
It is very easy to manage and incorporate a Limited Liability Partnership in India. To register an LLP minimum of two partners are required, there is no upper limit as such. The LLP agreement states the rights and the duties of the Partners. In an LLP one partner is not responsible for the misconduct and negligence of the other partner. The partners are responsible for the compliances and all the provisions that are specified in the LLP agreement.
Proprietorship vs Limited Liability Partnership (LLP) vs Company
Features | ||||
Definition | Unregistered type of business entity managed by one single person | A formal agreement between two or more parties to manage and operate a business | A Limited Liability Partnership is a hybrid combination having features similar to a partnership firm and liabilities similar to a company. | Registered type of entity with limited liability to the owners and shareholders |
Ownership | · Sole Ownership | · Min 2 Partners · Max 50 Partners | · Min 2 Shareholders · Max 15 Directors · Max 200 Shareholders · 1 Director · 1 Nominee Director | |
Registration Time | 7-9 working days | |||
Promoter Liability | Unlimited Liability | |||
Documentation | · MSME | · LLP Deed · Incorporation Certificate | · MOA · AOA | |
Governance | – | Under Partnership Act | ||
Transferability | Non Transferable | Transferable if registered under ROF | Transferable | |
Compliance Requirements | · Income tax filing if turnover is more than Rs.2.5 lakhs | · ITR 5 | · Form 11 · Form 8 · ITR 5 | · ITR 6 |
The following documents are mandatorily required for Indian Nationals incorporating an LLP
- PAN Card: PAN Card copy of the proposed Partners of the LLP will be required for the LLP registration process. The Department of Income Tax in India issues the PAN or Permanent Account Number which is a unique identification number
- Address Proof: In addition to the PAN Card copy, the proposed Partner must also submit an address proof and residential proof. The address proof submitted must have the name of the Partner as mentioned in the PAN Card and the most current address. The document must also not be older than 2 months. The following documents are acceptable address proof for Indian Nationals.
- Passport
- Election Card or Voter Identity Card
- Ration Card
- Driving License
- Electricity Bill
- Telephone Bill
- Aadhaar Card