What is LLP Registration?

LLP refers to Limited liability partnership and is governed by Limited Liability Partnership Act 2008. Limited Liability partnership provides the advantage of limited liability to its owners and at the same time requires minimal maintenance. The directors of a private limited company have limited liability to creditors. In case of default, banks/creditors can only sell company?s assets and not personal assets of directors.

(Exclusive Taxes)LLP is one of the easiest form of business to incorporate and manage in India. With an easy incorporation process and simple compliance formalities, LLP is preferred by Professionals, Micro and Small businesses that are family owned or closely-held. Since, LLPs are not capable of issuing equity shares, LLP should be used for any business that has plans for raising equity funds during its lifecycle. (Click to know more about LLP)

Advantages of Limited Liability Partnership:

– Separate Legal Entity

A LLP is a legal entity and a juristic person established under the Act. Therefore, a LLP has wide legal capacity and can own property and also incur debts. However, the Partners of a LLP have no liability to the creditors of a LLP for the debts of the LLP.

– Uninterrupted Existence

A LLP has ?perpetual succession?, that is continued existence until it is brought on the terms of the dissolution by mutual agreement within the partners. Partners may come and go, but an LLP goes on.

– Audit NOT Required

A LLP does not require audit if it has less than Rs. 40 lakhs of turnover and less than Rs.25 lakhs of capital contribution. Therefore, LLPs are ideal for startups and small businesses that are just starting their operations and want to have minimal regulatory compliance related formalities.

– Easy Transferability

The ownership of a LLP can be easily transferred to another person. All you need is to induct them as a Designated Partner of the LLP. LLP is a separate legal entity separate from its Managing Partners, so by changing the Managing Partners, the ownership of the LLP can be changed.

– Owning Property

A LLP being an artificial judicial person, can acquire, own, enjoy and sell, property in its name. No Partner can make any claim upon the property of the LLP – so long as the LLP is a going concern.

Steps involved in LLP (Limited Liability Partnership) Incorporation in India

Stage 1: DSC (Digital Signature) of two partners
Stage 2: DIN (Directors Identification Number) of two partners
Stage 3: LLP Name Approval from ROC
Stage 4: Certificate of Incorporation is generated by Submitting Final Documentation (like Subscription Page, Business Address Proofs, etc.)
Stage 5: LLP Agreement will be prepared and submitted to ROC
Stage 6: Application for PAN & TAN

Timeline for LLP Registration in India

It takes 15 to 21 working days (approx.) to complete Limited Liability Partnership Registration procedure. Timeline may vary depending on replies from ROC department.