Limited Liability Partnership Act, 2008 brought with itself the concept of LLP .The benefits of LLP are that it is simple to maintain & it provides the privilege of limited liability to the owners. Thus combines the benefits of both company & partnership into a single organization. One partner is not responsible or liable for another partner's misconduct or negligence. Therefore, all partners have a sought oflimited liability for each individual's protection within the partnership, similar to that of the shareholders of a corporation.
A Partnership Firm is a popular form of business constitution for businesses that are owned, managed and controlled by an Association of People for profit. Partnership firms are relatively easy to start are is prevalent amongst small and medium sized businesses in the unorganized sectors. With the introduction of Limited Liability Partnerships in India, Partnership Firms are fast losing their prevalence due to the added advantages offered by a Limited Liability Partnership.
The only difference between the company and the LLP is that, the partners have the right to manage the business directly. Also the personal assets are free from the errors, omissions, incompetence, or negligence of the LLP's employees or other agents. Thus, LLP is one of the easiest forms of business to incorporate and manage.
Minimum Requirement for LLP
- Minimum two person as partner
- Minimum Capital shall be Rs. 10,000
- DIN for the all the Partners
- Digital Signature for all the partners
- Consent From the partners
- Proof of Registered Address
- NOC from the owner of premises
Document Requirement for LLP
- Latest Colour Photo of all the partners
- Pan Card of the all the partners
- Address Proof of all the partners. In case Premises is taken on Rent / Lease, Rent agreement will also be required.
- Signature on the DSC Form
- Signature on Affidavit for DIN
- Signature on Consent form
- Signature on Subscriber Sheet
Basic Requirement to start LLP
- Registration with ROC.
- LLP Deed.
- Apply for Trade License.
- Professional Tax.
- Open a Current Account with Bank.
- GST Registration if required.
- Time period to obtain all the document is around 1 Month.