LIMITED LIABILITY PARTNERSHIP (LLP)
Definition of Limited Liability Partnership (LLP)
Limited Liability Partnership, shortly known as LLP is described as a body corporate created and registered under Limited Liability Partnership Act, 2008. LLP is a business vehicle that integrates the advantages of limited liability of a company and the flexibility of the partnership, i.e. for organising their internal composition and operation as a partnership.
LLP has a separate legal existence, distinct from its partners and has a perpetual succession. If there is any change, in the partners, then it will not influence the rights, existence or liabilities of the entity. Any individual or body corporate can become a partner in LLP, provided they are capable of becoming a partner.
LLP is also a form of partnership, where the liability of partners is limited as well as any partner will not be held liable for the acts of other partners. General Partnership, on the other hand, brings unlimited liabilities to the partners concerned and so they are jointly or severally liable for the debts.
Limited Liability Partnership is a form of business operation which combines the features of a partnership and a body corporate.
- Governed By - Limited Liability Partnership Act, 2008
- Charter document - LLP Agreement
- Liability - Limited to capital contribution, except in case of fraud.
- Contractual capacity - It can sue and be sued in its name.
- Legal Status - It has a separate legal status.
- Name of firm - Name containing LLP as suffix
- Maximum partners - No limit
- Property - Can be held in the name of the LLP.
- Perpetual Succession - Yes
- Relationship - Partners are agents of LLP only.
FOR INCORPORATING LLP
- Minimum 2 Partners Required
- DSC of all the partners
- DPIN for all designated partners
- The Name of the LLP should not be similar to the name of any Existing LLP ot Trademark registration
- Capital Contribution
- LLP agreement
- Proof of Registered office of the Business
Documents required for LLP Incorporation
- PAN CARD OR Passport if the applicant is Foreigner
- Driving License or AAdhar Card, Resident Card or election Card or any other identity proof issued by Government of India
- Less than 3 Months Old bank Statement or telephone bill
- The authorisation from the land lord (Name mentioned in the electricity bill or gas bill or property tax receipt) to use the premises as registered office
- Proof of evidence of any utility services like Gas, electricity, telephone which is not older than 2 months
