Limited Liability Partnership
An Overview of Online Company Registration in India
What Exactly Is a Limited Liability Partnership?
The benefits of a partnership and a limited liability business are combined in a Limited Liability Partnership (LLP). It emerged in India after January 2009 and was an instant hit with startups and professional services. The objective of LLP formation was to establish a simple corporate structure that benefits owners with minimal liability.
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Limited Liability Partnership
Follow-up and regular updates ensure that the process is transparent.
Required Documents for LLP Registration
- PAN card or passport (for NRIs or foreign nationals)
- Aadhar card, voter ID, passport, or driver's license
- Most recent bank statement/phone bill/mobile bill/electricity bill/gas bill
- Photograph in passport size
- Blank document with a sample signature.
Note: Please keep in mind that the first three papers must be self-attested by one of the partners.
Foreign nationals or NRIs must have all papers notarised (if currently in India or a Commonwealth country) or apostilled (if from a Commonwealth country).
The Advantages of LLP Incorporation
Here are four primary reasons why individuals prefer LLP formation as a company model:
Limitation of Liability
The members of an LLP registration are only accountable for a tiny portion of the firm's debt. In the event of insolvency, the partners' personal assets will not be considered. Personal assets of directors and partners in proprietorships and partnerships, on the other hand, will be taken if the firm goes bankrupt.
Legal Entity Separate
An LLP is a legal entity distinct from its partners. It has an unbroken existence that follows a permanent succession, i.e., the partners may quit, but the business continues to exist. For the business to dissolve, the conditions of dissolution must be jointly agreed upon.
Adaptable Agreement
It is also straightforward to transfer an LLP's ownership. A person can readily become a designated partner in an LLP, and ownership is transferred to them.
Appropriate for Small Businesses
LLPs with less than 25 lakhs in capital and less than 40 lakhs in annual revenue are exempt from formal audits. As a result, forming an LLP is advantageous for small enterprises and startups.