Lakshya Prayas Fund - Airawat Consultancy Services

Limited Liability Partnership

A Limited Liability Partnership (LLP) is a distinctive business structure that combines the advantages of a partnership and a company. In an LLP, partners benefit from limited liability, akin to shareholders in a company, while retaining the operational flexibility and simplicity of a partnership. This structure provides the LLP with its own legal identity, enabling it to initiate or face legal actions independently of its partners.

Introduced in India in 2008, LLP is governed by the Limited Liability Partnership Act to provide a reliable and flexible business structure suitable for organizations of all sizes.

Benefits

Benefits of a LLP Company Registration

  • 1

    Separate Legal Identity

    An LLP is recognized as a distinct legal entity, similar to large corporations, fostering trust and enabling independent legal actions.

  • 2

    Limited Liability for Partners

    Partners in LLP are liable only for their agreed contributions, protecting personal assets from company debts or losses.

  • 3

    Cost and Time Efficiency

    LLP registration is more affordable and less complex compared to large corporations, with minimal annual compliance requirements.

  • 4

    Flexible Capital Requirements

    No fixed capital is required; partners can contribute any mutually agreed amount.

Documents Required For LLP Registration

Identity & Address Proof of Partners

  • PAN Card/ID Proof of Partners.

  • Passport-size Photograph.

  • Residence Proof of Partners (bank statement,electricity bill, or gas bill).

  • Passport and Address Proof for Foreign Nationals/NRIs.

Proof of Registered Office

  • Proof of Registered Office Address (rent agreement, NOC, utility bill).

  • No Objection Certificate (NOC) from Owner

  • Digital Signature Certificate (DSC).

  • Rent Agreement or Lease Deed

Registration Time & Common Causes of Delays

LLP registration comes with a minimum eligibility criteria and meeting these allows you to leverage its benefits.

At least two partners are required to establish an LLP.
There is no maximum limit on the number of partners.

At least two designated partners must be natural individuals.
One designated partner must be an Indian resident.

If a corporate entity is a partner, it must appoint a natural person as its representative.

  • Corporate Partner Nomination: If a corporate entity is a partner, it must appoint a natural person as its representative.

  • Capital Contribution: Each partner must contribute to the LLP’s shared capital as mutually agreed.

  • Minimum Authorized Capital: A minimum authorized capital of ₹1 lakh is required for registration.

  • Residency Requirement: At least one designated partner must hold resident status in India.