Limited Liability Partnership(LLP)
The Limited Liability Partnership is a form of business where the owners are given the advantage of Limited liabilities and at the same time require minimal maintenance. The directors of a private limited company have limited liability to creditors. In case of default, banks/creditors can only sell the company’s assets and not the personal assets of directors. It is a modern form of partnership. The LLP has rights for both private limited companies as well as a public limited company. so the Limited Liability is the best and most suitable form of business to the owners or the partners. The user has to fill the form for registering for the LLP. A copy of Pan Card, utility bills, etc is required for LLP Documentation. The detail about the agreement between the partners or with the registrar is explained. Compliances are lesser in Limited Liability Partnership as compared to a company, yet the partners have limited liability since LLP acts as a legal entity separate from partners. Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct.
Procedure for LLP Registration Involves:
The procedure that is to be followed while registering for Limited Liability Partnership is mentioned below:
- Obtaining DIN or DPIN
- Obtaining Digital Signature Certificate for the designated partners by a certified person.
- Applying for a Limited Liability Partnership Name(new registration).
- Filling form 1 and form 2 for the name that is to be registered and for the required incorporation.
- Filling the LLP Agreement which is to be filed within 30 days of incorporation of LLP.
For detailed procedure of registration in LLP | Registration procedure in LLP
Documents for LLP
- Registered office address proof: The address proof of the registered office for LLP is required for security purposes.
- Digital Signature certificate: The DSC is the digital certification done so that the data of all the partners are secured in a Database. One of the designated partners needs to opt for a digital signature certificate also since all documents and applications will be digitally signed by the authorized signatory.
Documents required by Partners:
Here are the documents mentioned which are required for the LLP Documentation :
- Pan Card for all the Partners.
- Address proof of Partners.
- No-objection certificate of partners from the landlord.
- Utility bill of the proposed registered office of the LLP.
- Rental Agreement copy between the Landlord and LLP.
- Passports in case of foreign directors or partners.
- Drafting and Execution of LLP Agreement by partners. LLP agreement is complex therefore it is advisable to take professional/expert help.
- Filing of LLP Agreement within 30 days of registering the LLP to the Registrar.
Related Topic: Why LLP is better than Private Limited Company
The LLP, however, is not relieved of the liability for its other obligations as a separate entity. Mutual rights and duties of the partners within an LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The above explained are the documents needed in the LLP Documentation and the procedure that is to be followed while registering for LLP. A partner may lend money to and transact other business with the LLP and shall have the same rights and obligations concerning the loan or other transactions as a person who is not a partner. For applying Limited Liability Partnership visit | LLP registration | Company Registration Online