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Limited Liability Partnership

A Limited Liability Partnership generally known as LLP is a new and unique concept that gives the benefits of limited liability of a company and flexibility of a partnership.It is a seperate legal entity and have perpetual succession. It is registered according to legal and regulatory guidelines under Ministry of Corporate Affairs's (MCA) .

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How To Register A Limited Liability Partnership (LLP) ?
Registering a LLP is quick, easy, and can be done online with Call CA in 3 simple steps:
LLP Name Reservation

At Call CA , we help you to get the LLP Name Reservation as per the availability at MCA

Docs and LLP Deed Drafting

We help you get the legal docs ready and drafting the LLP Agreements and all required docs

Uploading and Approval

We upload the requite docs and get the Registration Certificate and guide you for further compliance

What as a Limited Liability Partnership ( LLP )
The Limited Liability Partnership (LLP) in India was governed by Limited Liability Partnership Act, 2008. It is a corporate business vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in flexible, innovative and efficient manner, providing benefits of limited liability while allowing its members the flexibility for organizing their internal structure as a partnership. Every LLP shall have atleat two designated partner being individuals, at least one of them being resident in India. The format of LLP is useful for small and medium enterprises and for the enterprises in the service sector because of simple compliance formalities. LLP is not cable of raising equity funds.

Characteristics of Limited Liability Partnership

It is imporatant to understand that what is the best choice for your business to come into legal existence, to decide whether to incorporate Private Limited or Limited Liability Partnership, Call CA helps you to provide the solution, following are some characteristics which defines Limited Liability Partnership.

Seperate Legal Entity
LLP is a seperate legal body like company. It has its own legal rights and liabilities. The creditors of LLP are not the creditors of individual partners.

Perpetual Succession
A Limited Liability Partnership can continue its existence even after the retirement, insolvency, insanity, death of all or any one of partners. LLP enter into contracts and can also hold property in its name.

LLP Agreement
An agreement between all partners governs the rights and duties of all the partners. Also, the partners can prepare the agreement as per their choice. If such an agreement is not made, then the Act governs the mutual rights and duties of all partners.

Limited Liability
According to Section 26 of the Act, every partner is an agent of the LLP for the purpose of the business of the entity. However, he is not an agent of other partners. Further, the liability of each partner has limitations to his agreed contribution to the LLP. It provides personal liability protection to its partners.

Minimum and Maximum Number of Partners in an LLP
Every Limited Liability Partnerships must have at least two partners and at least two individuals as designated partners. At any time, at least one designated partner should be resident in India. There is no maximum limit on the number of maximum partners in the entity.

Business Management and Business Structure
The partners of the LLP can manage their business. However, only the designated partners are responsible for legal compliances.

Business for Profit only
Limited Liability Partnerships cannot be formed for charitable or non-profit purposes. It is essential that the entity is formed to carry on a lawful business with a view to earning a profit.

E- Filing of Documents
If the entity is required to file any form/application/document, then it needs to be filed in an electronic form on the website www.mca.gov.in. Further, a partner or designated partner has to authenticate the same using an electronic or digital signature.

Advantages of LLP

LLP form is a form of business model which:

(i) is organized and operates on the basis of an agreement.
(ii) provides flexibility without imposing detailed legal and procedural requirements
(iii) enables professional/technical expertise and initiative to combine with financial risk taking capacity in an innovative and efficient manner

Difference between LLP & "Traditional Partnership Firm"

Liability
Under “traditional partnership firm”, every partner is liable, jointly with all the other partners and also severally for all acts of the firm done while he is a partner. Under LLP structure, liability of the partner is limited to his agreed contribution. Further, no partner is liable on account of the independent or un-authorized acts of other partners, thus allowing individual partners to be shielded from joint liability created by another partner’s wrongful acts or misconduct.

Authority
LLPs are registered in India under the Ministry of Corporate Affairs, Central Government. Partnership firms are registered with the Registrar of Firms, Controlled by the respective State Government in which the firm is registered.

Difference between LLP & Company

Regulation
A basic difference between an LLP and a joint stock company lies in that the internal governance structure of a company is regulated by statute (i.e. Companies Act, 2013) whereas for an LLP it would be by a contractual agreement between partners.

Management and Ownership
The management-ownership divide inherent in a company is not there in a limited liability partnership.

Flexibility
LLP will have more flexibility as compared to a company.• LLP will have lesser compliance requirements as compared to a company.

Requirements of Documents LLP Incorporation

The following documents are required for registration of LLP in India:

For Partners
  1. Copy of PAN Card or Passport in case of Foreign Nationals and NRI
  2. Copy od Aadhar Card/Driving Licence/ Voter I'd
  3. Copy of Bank Statement/Electricity Bill/Telephone or Postpaid Mobile Bill/ Gas Bill (not later than 2 months)
  4. Passport Size photograph
Note:- 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 Registered Office
  1. Sale Deed/ Property Deed in case of owned property
  2. Electricity Bill/Telephone or Postpaid Mobile Bill/ Gas Bill (not later than 2 months) in the name of owner of property.
  3. Notarised Rent Agreement
  4. NOC from owner of property

What We Do ?

We get your LLP incorporation done with complete online support. You need not to step outside your home and we guide you to enter into the business world hasselfree. At Call CA , our team helps you to understand the concept of LLP structure and help you to arrange the right documention done for the approval of Registration. Call CA has a TAT for incorporating a Limited Liabilty Partnership in 10-15 Days.

Call CA LLP Registration package includes:
  • DIN and DSC for two Directors
  • Drafting of MoA & AoA
  • Registration fees and stamp duty
  • Company Incorporation Certificate
  • Company PAN and TAN
We also help you to get the formalities done for Bank account opening

FAQs

Can a Company/LLP become Designated Partner?

No, only individual can become designated partner

What is LLP Agreement?

A limited liability partnership agreement is a contract made between the members of an LLP to establish a fair relationship between them and to protect their investment. The LLP itself is typically also a party to the agreement.

How many days we can reserve a LLP name?

for 20 days we can reserve a LLP Name

Is it necessary to appoint 2 designated partner?

Yes, two designater partner required to form a LLP from which one should be the indian citizen resided 182 days in India.

Can a listed company be converted to LLP?

No, only private / unlisted public company can be converted into LLP.

Can an existing company be converted to LLP?

Yes, any existing private company or existing unlisted public company can be converted into LLP by complying with the Provisions of clause 58 and Schedule III and IV of the LLP Act.

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