A LLP (limited liability partnership) is a corporate business entity suitable for the partnership business. It has characteristics of partnership firm and corporation as it offers limited liability to all the partners of the LLP. LLP registration in India is governed by Limited Liability Partnership Act 2008 which has laid down requirements and procedure for LLP registration.
LLP full form – Limited Liability Partnership
Advantages of LLP Registration
A limited liability partnership firm gives a number of advantages to the entrepreneurs and small businessmen. Here are some benefits of LLP in India.
- Continual existence
- Limited liability to the partners
- Easy share transferability
- Unique legal business entity
- No minimum limit on number of partners
- No minimum paid up capital requirement
- Less regulatory compliance
- No requirement of financial audit if turnover doesn’t exceeds 25 lakh
Setting Up an LLP in India
If entrepreneurs in India want to register a LLP they have to follow the procedure for LLP registration. Here is the complete step wise guide on how to register LLP and file the incorporation application in MCA.
- Document preparation
- Apply for DSC, DIN online
- Apply for name approval
- LLP incorporation filing
- LLP agreement/ deed preparation
Read to know complete company registration procedure
Limited Liability Partnership Act 2008
Limited Liability Partnership Act 2008 has been enacted by Parliament of India to introduce LLP structure of business in India. It defines all the jurisdictions, legal and regulatory compliance which a LLP has to follow. It defines LLP as a business entity which has separate and perpetual existence not affected by the partners.
Read complete Limited Liability Partnership Act, 2008 (.pdf)
LLP Incorporation Cost
The minimum LLP incorporation cost is approximately 3000 INR but LLP incorporation cost is dependent on number of DSC, DIN applications, name approval application, Tax, GST, Pan card registrations, capital contribution and LLP deed preparation. These are the important steps in formation of a LLP in India.
LLP Registration Time Period
Formation of LLP take approximately 15 days to final approval which is dependent on availability of proper documents required for LLP incorporation.