What is LLP?
It is a new and hybrid form of organization combining the benefits of partnership firm and corporate identity of a company. Like a company, LLP is also a body corporate with separate legal existence and is governed by Limited Liability Partnership Act. The liability of the members of LLP is limited to the capital contributed or as mutually decided in the agreement.
Requirements for incorporating LLP:
- Minimum 2 individual persons to act as designated partners.
[Note: Body Corporate partner of LLP cannot act as designated partner but can nominate an individual to act as designated partner.]
- 2 Preferable Names of LLP.
- Object of LLP and Business to be transacted.
- Details of any trademark/patent/design registration etc.
- Details designated partners and partners in LLP.
- Details of total Capital to be contributed.
- Details regarding place of business.
Duration for incorporation:
After submission of various forms to Registrar of Companies under Ministry of Corporate affairs it takes approximately a month to receive the certificate of Incorporation.
A Certificate of Incorporation of LLP is a conclusive evidence of its existence.
Benefits of LLP:
- Corporate Identity – can sue and be sued in its name.
- Limited liability of Partners.
- Flexibility in management
- Operate LLP with different levels of membership like designated partner and partner.
Lesser compliances and disclosures as compared to Companies.