What is a Limited Liability Partnership
LLP is a mid-way between partnership and limited liability company by retaining the simplicity of partnership but limiting liability of partners to their contribution. LLP is one of the easiest form of business to incorporate and manage in India with an easy incorporation process and simple compliance formalities. It is preferred by Professionals, Micro and Small businesses that are family owned or closely-held who don’t have plans for raising equity funds during its lifecycle. Now, if you have weighed the pros and cons and decided to form an LLP, then you are at the right page First ,you must understand what is the 4 point requirement checklist for establishing an LLP along with the required documents and then understand the detailed stepwise procedure
4 Point Requirement Checklist
No Minimum capital
An LLP can be started with a capital/ partners contribution as low as Re. 1. There is no requirement of minimum capital for registering an LLP. Nor any proof of contribution required
Minimum 2 Partners
An LLP can be formed by an agreement between atleast 2 persons who will act as designated partners of the LLP.
One designated partner of the LLP must be resident in India. A person is said to be resident if he or she stays in India for at least 182 days during the preceding financial year irrespective of their citizenship. The days of stay can be in phases.
The proposed name of an LLP should not resemble any existing company or LLP Name. You can use the Holding company name with India as suffix. You must also check the trademark registry to ensure that the name does not match with any registered or applied trademark in India.
Steps to form a limited liability partnership
Apply for DIN
Incorporation of LLP
File LLP agreement
- PAN Card of each partner
- Address Proof of each partner (Any utility Bill less than 2 months old/ Bank statement)
- ID Proof of each Partner(voter ID/Driving license/ Passport)
- 2 colour Photographs of each partner
- Passport (in case of Foreign Nationals/ NRIs)
- Utility Bill as Proof of Registered Address
- NOC From the owner of the premises