LIMITED LIABILITY PARTNERSHIP - LLP
An LLP is a partnership with a feature of a company like limited liability. Here a term, “limited liability” refers that In the event of loss, one partner is not liable or responsible for other partners’ misconduct. This is an important feature that encourages partners to opt for an LLP. This is particularly suited to accountants, solicitors, architects, consultants, surveyors and other fields of expertise where a partnership is preferred to a limited company.
REASONS TO OPT FOR A LIMITED LIABILITY PARTNERSHIP
A Limited Liability Partnership has a separate legal existence from its partners. Due to this feature, entry, and the existence of partners from the company doesn’t affect the status of LLP. As it deals with various shareholders like customers and suppliers. It offers flexibility while dealing and signing legal contracts. It can buy, rent, lease, own property, employ staff, enter into contracts, and be held accountable if necessary.
When it comes to compliance relating to the Ministry of Corporate Affairs, LLP enjoys significant advantages. A LLP does not have to have its accounts audited if the annual turnover of the LLP is less than Rs.40 lakhs and the capital contribution is less than Rs.25 lakhs. A LLP would however have to file LLP Form 8 and LLP Form 11.
Partners are not subjected to hold 4 mandatory board meetings as required in once in a year by Companies Act. The partners can meet as per their convenience or need basis. Partners can specify about the meetings details & schedule in the LLP agreement.
DOCUMENTS REQUIRED FOR LIMITED LIABILITY PARTNERSHIP - LLP REGISTRATION
Two Designated Partners, Registered Office, Main Objects Of Proposed LLP.
Maximum Two names can be applied in a single time.
For all Designated Partners and Partners. (mandatory for Indian national)
Aadhaar / passport / voter id / driving licence etc. (passport is mandatory for NRI / Foreign National)
Latest bank statement / utility bill / telephone bill
Latest passport size photographs
Email id, mobile number, educational qualification, place of birth, occupation of applicants
Rent agreement and rent receipts, noc from landlord, latest utility bill.
If Applicant Has Registered Trademark Of Proposed Name
Copy of Trademark Application or Trademark Certificate.
If The Partner Is A Foreign Company / Foreign National
1) Provide with the copy of Memorandum or Charter alongwith the Certificate of Incorporation of it and also the Registration Number of the Holding Company.
2) Registration certificate of Foreign company. (appostille)
3) All documents of of Foreign Directors or Subscribers shall be duly notarised and apostilled in their home country.