Limited Liability Partnership (LLP)

Under a Limited Liability Partnership (LLP), two or more partners form a special partnership and have limited liabilities. It is registered as per the compliance and regulatory guidelines of the Ministry of Corporate Affairs (MCA).

Limited Liability Partnership (LLP) in India took shape after January 2009, making it an instant success with startups and professional services. Limited Liability Partnership Registration, governed by the Limited Liability Partnership Act, 2008, combines the benefits of a partnership with that of a limited liability company. LLP was introduced to provide a form of business that is easy to maintain and to help owners by providing them with limited liability.

Benefits of a LLP

Seperate Legal Entity:

•  LLP is a separate legal entity from the partners. Each partner can sue the other in case a situation arises.

•  It has an uninterrupted existence that follows perpetual succession, i.e., the partners might leave, but the business remains. A term of dissolution has to be mutually agreed on for the firm to dissolve.

Flexible Agreement:

Transferring the ownership of LLP is also simple. A person can quickly be inducted in as a designated partner and the ownership switches to them.

Suitable For Small Business:

•  LLPs having a capital amount less than 25 lakhs and turnover below 40 lakhs per year do not require any formal audits. It makes registering as LLP beneficial for small businesses and startups.

•  An LLP can own or acquire property because it is recognized as a juristic person. Partners of LLP cannot claim the property as theirs.

No Owner /Manager Distinction:

An LLP has partners, who own and manage the business. This is different from a private limited company, whose directors may be different from shareholders. For this reason, VCs do not invest in the LLP structure.

Documents Required for LLP Registration

The method of LLP registration in India does not require much legwork when it comes to documents.

To Be Submitted By Partners

•  Scanned copy of PAN Card or passport (Foreign Nationals & NRIs)

•  Scanned copy of Aadhaar Card/ Voter's ID/Passport/Driver's License

•  Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill

•  Scanned passport-sized photograph Specimen signature (blank document with signature [partners only])

•  Note: Any one of the partners must self-attest the first three documents. In the case of foreign nationals and NRIs, all the documents must be notarized (if currently in India or a non-Commonwealth country) or apostilled (if in a Commonwealth country).

For The Registered Office

•  Scanned copy of latest bank statement/telephone or mobile bill/electricity or gas Bill

•  Scanned copy of Notarised Rental Agreement in English

•  Scanned copy of No-objection Certificate from the property owner

•  Scanned copy of Sale Deed/Property Deed in English (in case of owned property)

•  Note: Your registered office need not be a commercial space; it can be your residence, too.

Private Limited Company

Private Limited Company is one of the highly recommended ways to start a business in India. This type of company offers limited liability for its shareholders with certain restrictions placed on the ownership.  A LLP  has partners, who own and manage the business. Whereas in private limited company registration, directors may be different from shareholders.

Benefits

Registering a company offers many benefits. A registered company makes it genuine and increases the authenticity of your business.

•  Shields from personal liability and protects from other risks and losses.

•  Attracts more customers

•  Procures bank credits and good investment from reliable investors with ease.

•  Offers liability protection to protect your company's assets

•  Greater capital contribution and greater stability

•  Increases the potential to grow big and expand

•  You will also get Zero Balance Current Account

Documents Required for Company Registration

In India, Private Limited company registration cannot be done without proper identity proof and address proof. Identity and address proof will be needed for all the directors and the shareholders of the company to be incorporated. Listed below are the documents that are accepted by MCA for the online company registration process acceptable.

  Identity And Address Proof

•  Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)

•  Scanned copy of Voter's ID/Passport/Driver's License

•  Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill

•  Scanned passport-sized photograph specimen signature (blank document with signature [directors only])

For the foreign nationals, apostil led or notarized copy of the passport has to be submitted mandatorily. All documents submitted should be valid. The residence proof documents like the bank statement or the electricity bill must be less than 2 months old.

Registered Office Proof

For online company registration in India, the company must have a registered office in India. To prove admittance to the registered office, a recent copy of electricity bill or the property tax receipt or water bill must be submitted. Along with the  rental agreement , utility bill or the sale deed and a letter from the landlord with her/his consent to use the office as a registered office of the company should be submitted.

•  Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill

•  Scanned copy of Notarized rental agreement in English

•  Scanned copy of No-objection certificate from the property owner

•  Scanned copy of sale deed/property deed in English (in case of owned property)

Note:  Your registered office need not be a commercial space; it can be your residence too.