Limited Liability Partnership
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About Limited Liability Partnership
A corporate business vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in a flexible, innovative, and efficient manner, providing benefits of limited liability while allowing its members the flexibility for organizing their internal structure as a partnership.
A Limited Liability Partnership (LLP) is a special business structure that provides protection for individual partners against the negligence of other partners within the organization. LLP company has both Limited Liability features of a Private Limited Company and the flexibility of a Partnership Firm. LLP form of structure is mostly preferred by Professionals, Micro, Small, and Medium Enterprises (MSMEs) that are family-owned or closely-held.
A Limited Liability Partnership (LLP) is a special business structure that provides protection for individual partners against the negligence of other partners within the organization. LLP company has both Limited Liability features of a Private Limited Company and the flexibility of a Partnership Firm. LLP form of structure is mostly preferred by Professionals, Micro, Small, and Medium Enterprises (MSMEs) that are family-owned or closely-held.
Advantages of a LLP
- The liability of the designated partner will be limited to the extent he has agreed to contribute towards the capital of the firm.
- The continuity of the LLP and its functioning is not affected by the death, disability, or retirement of its member.
- No need for minimum share capital.
- Easy to get Bank Loans.
- Better opportunity for strengthening capital resources, growth, and development of the enterprise.
- Minimal registration costs.
- Few business compliance requirements.
Disadvantages of LLP
- Not suitable for small Business activity with limited geographic market.
- Compliance cost and high Penalties if not regular in filing the compliance.
- Public disclosure is the main disadvantage of an LLP.
- Tax rate higher compared to Pvt. Ltd corporate tax rate.
Documents Required
It is very easy to register this type of business as very few documents are needed. The required documents include:
- PAN card (Copy) of all the Designated Partners
- Adhaar card (Copy) of all the Designated Partners
- Passport size photo of all the Designated Partners
- Voter id/ Driving Licence/ Passport
- Bank statement of all Designated Partners
- Proof of Address(Power bill, Municipal tax bill, Sale deed copy)
- Rental Agreement or NOC
Registration Duration
Registration of Limited Liability Partnership takes the shortest time and can be completed within a minimum of 10–12 working days. Despite registration taking the shortest time possible, this solely depends on government procedures and approvals during the time of your registration.
Registration Fee
The Government’s registration fee starts at Rs. 1,500, while professional fees start at Rs. 7,500. The variance would depend on the type of business, number of employees, location of the business, and specific requirements to be met while registering your business.