Limited Liability Partnership
Starting, Operating & Maintaining an LLP is a preferred option for small to medium entrepreneurs due to its structure, compliance and operational advantages. LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership.
Benefits of Registration
- Minimal compliance
- Eligible to register under Startup India Initiative of Govt of India
- All the benefits of a company like separate legal entity, continuous existence, Owning property and comes at low maintenance costs
- Limited Liability
Documents Required
For Designated Partners
- Photograph of all the Partners
- PAN Card of all the Partners (Passport for NRI and Foreign Nationals)
- Electricity Bill or any other utility bill for the address proof
Proofs for office address
- Latest water bill or electricity bill
- Notarized rental agreement in English
- In case of owned property Sale deed or property deed
- NoC from the property owner
What other registrations are required along with PLC registration?
This depends on the nature of business. But broadly you will require below registrations along with LLP registration
- GST Registration
- PF Registration if number of employees more than 20
- Professional Tax of respective states
- Local body licenses (Eg. Karnataka Shops & Establishments)
- Complaince with Labour laws like Factories act, ESI, POSH, Labour welfare Fund etc..
Frequently Asked Questions
Yes, an existing partnership firm can be converted into LLP by complying with the Provisions of clause 58 and Schedule II of the LLP Act.
Yes, any existing private company or existing unlisted public company can be converted into LLP.
Every LLP has to maintain uniform financial year (April to March) ending on 31st March of a year.
It is not mandatory to file the charge details with the office of Registrar but the stakeholders can voluntarily file the same.
No, name of the LLP shall end with either 'Limited Liability Partnership' or 'LLP'.
An HUF cannot be treated as a body corporate for the purposes of LLP Act, 2008. Therefore, a HUF or its Karta cannot become a partner or designated partner in LLP.
Act - Limited Liability Partnership Act, 2008 and Rules - Limited Liability Partnership Rules, 2009
