Limited Liability Partnership Registration

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Features of LLP.

• LLP is a Body of Corporate: As per Section 3 of the Limited Liability Partnership Act 2008 (LLP Act), an LLP is a corporate body established and registered under the Act. It exists as a distinct legal entity separate from its partners.

• Perpetual Succession: Unlike a general partnership firm, a limited liability partnership has the advantage of perpetual succession. This means that even if one or more partners retire, become insolvent, suffer from mental incapacity, or pass away, the LLP can continue its operations. Additionally, the LLP has the capacity to enter into contracts and own property in its own name.

• Separate Legal Entity: Similar to corporations or companies, an LLP is recognised as a separate legal entity. It holds full liability for its assets and obligations. Moreover, the individual partners' liabilities are limited to their contributions to the LLP. As a result, the creditors of the LLP are not considered creditors of the individual partners.

• LLP Agreement: The LLP Agreement is a contract agreed upon by all partners, outlining their rights and duties. Partners have the freedom to create the agreement according to their preferences. The Act will govern their mutual rights and duties if they don't create one.

• Artificial Legal Person: For legal purposes, an LLP is considered an artificial legal person. It is created through a legal process and possesses all the rights of an individual. It exists as an intangible, immortal entity but is not fictional since it has real existence.

• Common Seal: An LLP may have a common seal if the partners use one (Section 14(c)). However, having a seal is not mandatory. If they choose to use a seal, it must be kept under the custody of a responsible official. The seal can only be affixed by at least two designated partners.

• Limited Liability: Under Section 26 of the Act, each partner is an agent of the LLP for its business activities. However, a partner is not an agent of other partners. The liability of each partner is limited to their agreed contribution to the LLP, providing personal liability protection to all partners.

• Minimum and Maximum Number of Partners: Every LLP must have a minimum of two partners, and at least two of them must be individuals serving as designated partners. At least one designated partner should always be a resident of India. There is no maximum limit on the number of partners in the LLP.

• Business Management and Structure: The partners of the LLP have the authority to manage the business. However, only the designated partners are responsible for ensuring legal compliance.

• Business for Profit Only: LLPs are specifically formed to conduct lawful business to earn a profit. They cannot be established for charitable or non-profit purposes.

• Investigation: The Central Government holds the power to investigate the affairs of an LLP. They can appoint a competent authority for this purpose.

• Mutual Agency: Unlike a partnership firm, in an LLP, actions taken by one partner independently and without authorisation do not make other partners liable. Each partner is considered an agent of the LLP, and the actions of one partner do not bind the others.

Why choose Limited Liability Partnership.

Advantages

Disadvantages

One significant benefit is the partners' personal assets would be protected from all business liabilities; they are not personally accountable and cannot be made to use personal property or assets to satisfy a business debt or liability.

An LLC requires a bit more upkeep to run than a partnership or sole proprietorship. An LLP's owner might be required to pay unemployment benefits for themselves, something they wouldn't have to do if they were a lone proprietor.

Eligiblity and Requirements for Limited Liability Partnership

Any two or more individuals or entities, including foreigners/NRIs, can form an LLP. Professionals such as accountants, lawyers, consultants, and others often choose to form LLPs to combine their expertise and limit their liability.

Documents Required for Limited Liability Partnership Registration

• Identity and address proofs of the owner/director(s).

• Address proof of the company's registered office.

• Memorandum of Association (MOA) and Articles of Association (AOA) of the company.

• Consent to act as a director from the owner/director(s).

• NOC (No Objection Certificate) from the property owner of the registered office.

Steps Involved In Limited Liability Partnership Registration

Step 1 : Convene a Partners' Meeting:

Step 2: Obtain Required Consent

Step 3: Draft and Sign a Resolution

Step 4: File Form 5 with the Registrar of Companies (ROC)

Step 5: Await Certificate of Alteration

Step 6: Successfully Registered.

Why ComplyHub for Limited Liability Partnership Registration

• Expert Guidance: Our team of seasoned professionals simplifies the LLP registration process, ensuring compliance with all legal requirements so you can focus on your business.

• End-to-End Support: We handle everything—from name approval and documentation to filing with the MCA and obtaining PAN and TAN—providing a hassle-free experience.

• Transparency and Updates: With Comply Hub, you’re always informed. Our experts provide regular updates at every stage, so you know exactly where your registration stands.

• Fast and Efficient Service: We understand the importance of time in business. Our streamlined process is designed to deliver results quickly without compromising quality.

• Customized Solutions: Every business is unique. We offer tailored solutions to ensure that your LLP registration aligns with your business needs and compliance requirements.

  Choosing Comply Hub means choosing reliability, efficiency, and a team dedicated to your success. Let us make your LLP registration process smooth and worry-free!

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