A Limited Liability Partnership or LLP as it is commonly known is a Partnership Firm with a Limited Liability. A LLP must have at least 2 Designated Partners/Partners and has NO Minimum Capital Requirement. It has the advantages of both a Partnership Firm and a Private Limited Company. It is the most suitable organisation for Traditional as well as 'Brick and Mortar' Businesses.
-Family Owned Businesses.
-Entrepreneurs who want a Separate Legal Entity with Limited Liability and Perpetual Succession.
-Entrepreneurs who DO NOT wish to raise Venture Capital, Seed or Angel Funding.
12-15 working days from the time we receive the required documents. This time can increase or decrease depending on the time taken by the Registrar of Companies (ROC) to process the forms.
Click here to Download the List of Documents required for Formation of your LLP. A list of Documents will also be emailed to you once you book this service. Basic documents like PAN Card, Address Proofs, Electricity Bills etc. are required to form your LLP.
The Cost to form a LLP is Rs 7999*. Click here to calculate the Cost according to your Capital. This Cost includes Professional Fees, ROC Fees, 2 DINs, 2 Digital Signatures, PAN and TAN. This does NOT include the Stamp Duty on the LLP Agreement.
Limited Liability means that if you're LLP incurs a business loss, your contribution to that loss will be limited to your Capital contribution in the LLP. For example, if your LLP makes a Loss of Rs 1,00,000/- and the LLP doesn't have enough assets to pay off the loss. In that case, the partners will have to contribute only their agreed capital and nothing above that. Suppose the agreed capital comes up to Rs 20,000/- then the difference of Rs 80,000/- will not have to be paid by the Partners. But if a Partner does a wrongful act which includes fraud, he shall be personally liable for it.
If a partner does something he is not authorised to do then the LLP is liable for his acts but the Partners are not personally liable for his acts. The partners of a LLP shield themselves from any unauthorized acts of the other partners.
Yes. You can define each partners authority. You can clearly define what decisions need to be taken only in a partners meeting and you can also define the partner's rights and duties. All this can be done through the LLP agreement and we will help you customize the LLP agreement as per your need.
Director Identification Number (DIN) or Designated Partner Identification Number (DPIN) is a number which is required to become a Designated Partner in a LLP or a Director in a Company. This number is issued by the Ministry of Corporate Affairs (MCA). The procedure to issue this number is an online process and is a once in a lifetime procedure.
No. To become a partner in a LLP you just need a PAN number.
Limited Liability: - The biggest advantage of a LLP is Limited Liability. The partners are only liable to contribute their agreed Capital. If the LLP incurs a Loss, the the Partners/Designated Partners do not have to pay for the Losses of the LLP beyond their agreed capital. Also, the partners of the LLP are shielded from the unauthorized acts of the other Partners.
Separate Legal Existence: - A LLP is separate and distinct from its Partners. It can buy and sell property, enter into contracts, sue or be sued upon in its own name. The death, insanity, incapacity or insolvency of its Partners does not affect the existence or business of the LLP in any way.
Perpetual Existence: - Once formed, a LLP has a life-time existence until and unless it is dissolved.
A status like a Private Limited Company and flexibility of a Partnership firm: - A LLP is a Business entity which is formed by combining the advantages of a Private Limited Company and a Partnership Firm. It has the advantages of a Private Limited Company like Limited Liability, Separate Legal Existence and Perpetual Existence and advantages of a Partnership Firm like Flexibility in rotation of funds, no compulsory audits, minimum compliance etc. A LLP is a business type with practically no disadvantages except for the fact that you CANNOT raise venture, seed or angel funding in a LLP.