A Limited Liability Partnership or LLP as it is commonly known is a Partnership Firm with a Limited Liability. An 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.
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 starts from Rs 7,999/-*. Click here to know the 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.
The Stamp duty on the LLP Agreement is NOT included in the Cost mentioned above. The stamp duty depends on the State where the Registered Office of the LLP is situated and the Capital of the LLP.
No. There is no such condition to Rent an Office to start an LLP. You can even start your LLP from a Residential Address. We just need the Latest Electricity Bill of the Property, an NOC from the owner and a Lease Agreement (If Any) for registering your LLP.
A designated Partner is a Partner who manages the day-to-day activities of an LLP.
A LLP can even be started with Re 1/- capital. There is NO minimum capital which is required to start an LLP.
- Q : Is the LLP set up procedure completely online? If no, do I have to go to the ROCs office to register my LLP?
The LLP formation procedure is completely online. There is no need to go to the ROC’s office to set-up your LLP. Just scan, email and courier us the documents we require and we will Register your LLP.
Yes. We will draft the LLP agreement for you. The LLP agreement will be sent for your Approval Post drafting.
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 an LLP shield themselves from any unauthorized acts of the other partners.
Yes. The LLP will be liable for the unauthorized acts of its Partners.
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.
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.
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 Entity:
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.
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.
Once formed, a LLP has a life-time existence until and unless it is dissolved.