Limited Liability Partnership (LLP)

One of the quickest, in-expensive way for a Company thru LLP

There are many different ways to form a business, and one of the more common ways is through a Limited Liability Partnership, or LLP. This type of business structure that involves two or more people coming together to own and operate a single business. There is a wealth of benefits to be enjoyed and reasons that people choose to go the limited liability partnership route for their business. Tax benefits and limited liability are two of the biggest. While there are many great reasons to choose an LLP, and also some significant draw backs in choosing this structure.

Key Features of Limited Liability Partnership (LLP)

  • Limited liability protects the member’s personal assets from the liabilities of the business. LLP’s are a separate legal entity to the members.
  • Flexibility: The operation of the partnership and distribution of profits is determined by written agreement between the members. This may allow for greater flexibility in the management of the business.
  • The LLP is deemed to be a legal virtual person. It can buy, rent, lease, own property, employ staff, enter into contracts, and be held accountable, if necessary.
  • Corporate ownership: LLP’s can appoint two companies as members of the LLP. In a LTD Company, at least one director must be a real person.
  • Designate and non-designate members: You can operate the LLP with different levels of memberships.
  • Protecting the partnership name: By registering the LLP at Companies House you prevent another partnership or company form registering the same name.

Steps to Register a Limited Liability Partnership (LLP)

While EZFilings.in will take care of the entire process in registering a company, below are few steps to understand the process.

  • Obtain Digital Signature Certificate [DSC] for the proposed Director(s).
  • Obtain Director Identification Number [DIN] for the proposed director(s).
  • Select suitable Company Name, and make an application to the Ministry of Corporate Office for availability of name.
  • New User Registration
  • Payment of Requisite fee to Ministry of Corporate Affairs and also Stamp Duty.
  • Incorporate a LLP
  • File LLP Agreement
LLP Registration Pricing


FAQs

1How to convert existing partnership firm into LLP?

Any existing partnership firm that is willing to get converted into LLP will need to apply through Form 17 (Application and statement for the conversion of a firm into LLP. Form 17 needs to be filed along with Form 2 (Incorporation document and Subscriber’s statement).

2How to convert an existing private company/ unlisted public company into LLP?

Any private company/ unlisted public company that is willing to get converted into LLP need to apply through Form 18 (Application and Statement for conversion of a private company/ unlisted public company into limited liability partnership (LLP)). Form 17 needs to be filed along with Form 2 (Incorporation document and Subscriber’s statement).

3How to start a Foreign Limited Liability Partnership (FLLP)?

Any Foreign LLP can establish its place of business in India by filling Form 27 (Registration of particulars by Foreign Limited Liability Partnership (FLLP)).

The eForm has to be digitally signed by authorized representative of the FLLP.There is no mandatory requirement to apply and obtain DPIN or DIN for Designated Partners of FLLP but the DSC of the authorized representative is mandatory.

4What are the qualifications for becoming a partner?

Any individual or body corporate may be a partner in a LLP. However an individual shall not be capable of becoming a partner of a LLP, if—

  1. he has been found to be of unsound mind by a Court of competent jurisdiction and the finding is in force;
  2. he is an undischarged insolvent; or
  3. he has applied to be adjudicated as an insolvent and his application is pending.

5What are the requirements in respect of “Designated Partners”?

Appointment of at least two “Designated Partners” shall be mandatory for all LLPs. “Designated Partners” shall also be accountable for regulatory and legal compliances, besides their liability as ‘partners, per-se”.

6Who can be a “Designated Partner”?

Every LLP shall be required to have atleast two Designated Partners who shall be individuals and at least one of the Designated Partner shall be a resident of India. In case of a LLP in which all the partners are bodies corporate or in which one or more partners are individuals and bodies corporate, at least two individuals who are partners of such LLP or nominees of such bodies corporate shall act as designated partners.