LIMITED LIABILITY PARTNERSHIP

limited liability partnership

LLP or Limited Liability Partnership is nothing but an alternative corporate form that provides benefits of “Limited Liability” to the designated partners at reasonable costs of compliance.

It is a legal entity. However, the liability of all Designated Partners is limited to the portion as contributed by the Designated Partners. Hence, LLP has benefits of both ie., Company as well as partnership.

Features of LLP

Body Corporate

Acc. to Section 3 of the Limited Liability Partnership Act (“LLP Act”), 2008, as amended, LLP is a body corporate formed under the LLP Act having features of separate legal entity from its partners.

Perpetual Succession

Perpetual Succession is one of the benefits of forming an LLP, a member may come and do but LLP will carry on forever.

Separate Legal Entity

LLP is a separate legal entity which means that the LLP is solely responsible for the acts beings done. The liability of the Partner is being restricted only to the proportion being invested by the partners.

Mutual Agency

It means the action of one partner cannot make the other liable for his unauthorized actions. Partners are agents of LLP.

LLP Agreement

LLP agreement is the most crucial document which contains the rights and duties of all the partners. Each and everything is governed by the LLP agreement.

Limited Liability

Acc. to Section 26 of the LLP Act, every Partner is an agent of the LLP. Liability of the partners is limited to the proportion as contributed by them in an LLP

Artificial Legal Person

LLP is an artificial legal person in the eyes of the law. It can enter into any contracts in its own name. It has all rights as are provided to partners under the LLP agreement. It can file a suit and a suit can be filed against the LLP in its own name.

Min. and Max. Number of Partners in an LLP

Every LLP must have at least a minimum no. of 2 partners and at least two individuals to be appointed as designated partners. Further, at least 1 designated partner shall be resident in India. No maximum limit has been decided which means that LLP can have any no. of partners.

PROCEDURE TO INCORPORATE LLP

Step 1: Obtaining of Digital Signature Certificate (DSC) for the Designated Partners

In order to move an application for Director Identification Number (DIN) or Designated Partner Identification Number (DPIN) for Partners, a Digital Signature Certificate (“DSC”) will be required. This means that DSC is a must for the partners for the filing of DIN application.

Step 2: Obtain Director Identification Number (DIN) for the Partners of LLP

It is the second step after the DSC has been obtained, Partners are required to make DIN in order to move an application for the Incorporation of LLP. Few documents and forms are required to obtain DIN for all partners. Generally, people are confused with DIN and DPIN both are the same thing if you have DIN. You can use it form to incorporate an LLP in place of DPIN. There will be no issue.

Step 3: Obtaining Name Approval

Once two DPIN’s are available, an application can be filed with mca for reservation of name. LLP naming guidelines must be kept in time while filing of an application. The submitted application shall be review by the ROC and processing shall be done.

Step 4: Filing for documents related to Incorporation

Once the name is being approved by the RoC, an application for Incorporation shall be filed. After name approval, the Partner has sixty days to file all the documents for Incorporation along with the supporting document. RoC after verifying and satisfying himself shall issue a certificate of Incorporation.

It is to be noted here that once the certificate of Incorporation issued, LLP is required to file the LLP agreement within 30 days from the date of the issue of the LLP incorporation certificate. Failure of which may incur late fees for filing of the respective form.

LetsComply is a full-service law firm and is the best platform for all your Legal, Finance and Taxation needs. Letscomply is one of the leading law firms in India and having a team comprises of Corporate Lawyers, Company Secretaries, Chartered Accountants, Cost Accountants, IP Attorneys, and Management Experts with rich experience in their respective filed. We believe in long-term alliances for mutual growth.

For more information, please contact us on info@letscomply.com or call us Mb. No.97178 22448 Ph. No.011-42662177/78/79.

SERVICES PROVIDED BY US:

Foreign Investment in India| Setting-up of Business in India |Virtual CFO| Virtual General Council| NCLT Matters | IBC matters| Income Tax | GST Registration & Returns |Trademark registration | Company Registration | LLP Registration |NGO| Company Annual Compliances | Drafting & Vetting of Agreements |Opinion & Advisory on Different Issues| FSSAI Licenses| ESI & EPF | ISO certification |Shop & Establishment Registration |MSME Registration| SEIS/MEIS Services| DGFT| Legal Notices

 

Start typing and press Enter to search

Shopping Cart

No products in the cart.

Translate »

Thanks for contacting us