LLP was launched in India by way of the Limited Liability Partnership Act, 2008. The main edge of a Limited Liability Partnership is one partner is not liable for another partner’s misconduct or negligence. LLP is favoured by Professionals, Micro and Small businesses that are family-owned or closely-held. Limited Liability partnership offers the benefit of limited liability to its owners and at the same time needs minimal maintenance. The owners of a private limited company have limited liability to creditors. In case of default, banks/creditors can only sell the company’s assets and not the personal assets of directors. An LLP also gives limited liability protection for the owners from the debts of the LLP. Accordingly, all partners in an LLP enjoy a kind of limited liability protection for every individual’s protection within the partnership, related to that of the shareholders of a private limited company.
- Flexible Agreement
- Seperate Legal Entity
- Suitable For Small Business
- No Owner /Manager Distinction
- Dual advantages- Company and a Partnership
- No partner will be responsible for other partner’s misconduct
- Cheaper to incorporate than a private limited company
- Limits the liabilities of its partners
To Be Submitted By Partners
- PAN Card or passport (Foreign Nationals & NRIs)
- Adhar Card/ Voter’s ID/Passport/Driver’s License
- Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
- Passport-sized photograph Specimen signature (blank document with signature [partners only])
Note: Any one of the partners must self-attest the first three documents. In the case of foreign nationals and NRIs, all the documents must be notarized (if currently in India or a non-Commonwealth country) or apostilled (if in a Commonwealth country).
For The Registered Office
- Latest bank statement/telephone or mobile bill/electricity or gas Bill
- Notarised Rental Agreement in English
- No-objection Certificate from the property owner
- Sale Deed/Property Deed in English (in case of owned property)
Note: Your registered office need not be a commercial space; it can be your residence, too.