LLP registration is a more viable option for small businesses or companies that do not require equity funding. A Limited Liability Company offers the adaptability of a Partnership Firm as well as the limited liability of a sole company. It is one of the most feasible ways to form a business, as the liability of the owners is limited. In a LLP, the partners can manage the business directly. Moreover, it is comparatively less expensive than a Private Limited Company and has a more preferable tax structure.
Advantages of Setting Up a Limited Liability Partnership (LLP) Registration :
After electronic submission of forms to Ministry of Corporate Affairs, it has become mandatory to attest the electronic forms or documents by digitally certifying it with an individual’s signature through DSC. DSC is just an electronic format of physical signature and can be presented electronically to prove your identity, to access information or services on the Internet or to sign certain documents digitally.
Designated Partner Identification Number is a unique identification number, which is required to be obtained by each person who wants to be a Designated Partner in the proposed or existing LLP. Designated Partner Identification Number is valid for a lifetime. Any individual who already has a Director Identification Number (DIN) need not apply for DPIN and vice versa
Minimum 2 Partners are required to incorporate a Limited Liability Partnership (unlimited partners can be there in a Limited Liability Partnership).
Minimum 2 Designated Partners are required to incorporate a Limited Liability Partnership.
There is no minimum capital requirement to incorporate a Limited Liability Partnership.
Yes, an NRI or Foreign National can become a director in a Limited Liability Partnership after obtaining DPIN.
Yes, an NRI or Foreign National can contribute to a Limited Liability Partnership subject to FDI guidelines.
No, one of the essential requirements for setting LLP is 'carrying on a lawful business with a view to profit'. Therefore, LLP cannot be incorporated for undertaking "Not-For-Profit" activities.
Limited Liability Partnership (LLP) is a new form of doing business in India with lesser Annual Compliances. Most of the entrepreneurs are opting for LLP Formation as LLP is having feathers of both Company and LLP. LLP is very easy to form as compared to companies. It is a body corporate having a separate legal entity and limited liability. The number of annual compliances and Government fee is very less for LLP as compared to a company.
Audit of accounts is not mandatory for those LLPs whose turnover does not exceed, in any financial year, forty lakh rupees, or whose contribution does not exceed twenty-five lakh rupees.