Limited Liability Partnership

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Limited Liability Partnership2018-06-01T08:07:29+00:00

Highlights

What is LLP ?

Limited Liability Partnership is a separate legal entity from its partners and liability of each partner is limited to their contribution.

Benefits

LLP has perpetual succession and contains salient features of Company and Partnership.

Formation & Cost

Easy to form LLP and registration cost is low in comparison to company formation.

Compliance & Disclosure

LLP requires less disclosure and compliance requirement is less as compare to other entities.

Audit Requirement

No mandatory requirement of statutory audit up to a certain limit i.e. Turnover or Contribution.

Taxation

No income tax chargeable on profit distribution in partner’s hand.

LLP a better version of partnership firm

A Limited Liability Partnership Firm is a better version of general partnership firm carrying additional advantageous features like protection of business name, partners having limited liability shield, a business listing on the registrar of companies, recognition under Startup India – Standup India scheme etc. LLP represents the business legal entity more professionally among your buyer personas as compare to a normal partnership firm. Find out more.

Frequently Asked Questions

The LLP stands for Limited Liability Partnership it is a better version of a general partnership firm. It is governed by limited liability partnership act 2008.
LLP has all features of partnership firm with an additional benefit of limited liability of partners and it also immunes the business name from being copied by others.
Minimum 2 Partners are required to start an LLP. There is no limit on the maximum number of partners in an LLP.
Unlike a private ltd company no minimum capital required to start an LLP.
A legal proof of LLP is certificate of incorporation as well as LLP agreement.
LLP agreement is similar to a partnership deed where all the rights, liabilities and share of profit and loss are mentioned/drafted.
Name allotment as desired by you is wholly a discretionary power of ROC. Normally ROC allots your desired business name if it is unique and not resembling with any existing company/LLP.
Yes, DSC of an authorized director is required while incorporating an LLP.