Both the entities are functioning in similar way with respect to the compliance and operational requirements. As these both entities recognized as a separate legal entity than partnership, it can contract or involve in any legal proceedings in its own name, which enables partners of an LLP to separate business liabilities or debts being recovered from their personal assets. Compliances are a little more compared to normal partnership firm in Limited Liability Partnership. While compared with Private limited company, it’s easy to incorporate and maintain.
Ownership transfer of a Limited Liability Partnership is not as easy as of a Private Limited Company. Neither an LLP can issue ESOP, there for startups planning for a huge expansion, seek seed investor or venture capital funding or issue share capital to its employs, won’t really be courageous to go with LLP registration.
A Limited Liability Partnership company is registered under Ministry of Corporate Affairs, a quicker process of incorporation of LLP is made available from October 2018 as a part of the ease of doing business initiative by the India Government. BookMyTM assures a hassle free process to register an LLP with our innovative web based platform. All you need to fill a form which won’t take more than 10 minutes and upload all required documents after paying the applicable government fee. Experts at BookMyTM will look after the rest.
As a Limited Liability Partnership (LLP) is a stand out legal entity, which can enter into contractual relationships in its own capacity since it offers a great advantage to its partners for limiting their personal risk. Liability of financial contribution of any partner is restricted to the capital contribution as per the LLP agreement. Lot of new age companies prefers to go with LLP registration over partnership so that their personal assets remain safe in case of loss or even insolvency. More over one partner doesn’t required to take the entire responsibility for the actions of negligence or misconduct of any other partners.
Limited Liability Partnership Agreement/deed among partners of LLP, clarifies operating structure including rights and responsibilities of partners. With LLP agreement, one of the selected partner/business by all other/s is appointed as ‘Designated Partner’, who is responsible for day to day operations of the company. Either an existing company or an individual can be Member at a LLP agreement. The LLP agreement allows defining the roles of each partnerand their respective responsibilities, which help protecting a partner’s interest in case of loss because negligence or misconduct of any other partner/s.
A Limited Liability Partnership (LLP) has a separate legal identity than of its partners and it is governed by the LLP act 2008. As LLP is a separate legal entity, it can take legal actions, own assets and borrow funds in its name itself where as a partnership firm can’t do the above in its own identity.
A LLP requires lower compliances compared to a Private Limited Company. Audit report is not mandatory for LLPs until it reaches certain level of turnover. Company compliances like board meeting, statutory meeting etc. do not applicable for LLP. Professional service charges are cheaper to maintain compliances for a LLP over a Private Limited Company.
Identification plays an important role in making a business outstand in competitive market, build unique and distinctive name for your business hence enhance your brand’s trust and value. Consumers should identify activity of your business from the brand name so that they can relate your business with its offerings.
Even though it meets all the above criteria, once again make sure that the brand name to be short, easy to remember and simple to pronounce or spell.
The name of a registered Limited Liability Partnership must end with LLP or Limited Liability Partnership as suffix. (Example: ABC CONSTRUCTIONS LLP)
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Your LLP Firm is incorporated.
There must be at least two individuals appointed as Designated Partners, one of whom must be an Indian citizen and resident. Additionally, a registered Indian office address is required for the registered office.
No, there’s no minimum capital requirement. Partners can contribute any capital amount necessary for the business.
Foreign nationals, foreign companies, and LLPs can become partners, but at least one designated partner must be an Indian citizen and resident. Additionally, every partner must be at least 18 years old.
Name reservation is done online through the LLP-RUN (Reserve Unique Name) system. You may propose up to two names in order of preference. If neither is accepted due to uniqueness or relevance issues, you’ll need to submit new options.
DPIN has been replaced by DIN for LLPs. A DIN—a unique number issued by the Ministry of Corporate Affairs—is applied for during LLP registration, allowing individuals to act as designated partners.
A DSC (Digital Signature Certificate) is provided as a token by certified authorities. It must be procured by the designated partner(s) who will digitally sign the incorporation forms.
Yes. LLPs must have a registered office in India, which may be a residential or commercial premise, and it’s used for official communication by the Ministry of Corporate Affairs.
An LLP Agreement outlines the rights, roles, duties, and responsibilities of partners. It must be executed by all partners and filed with the MCA within 30 days of incorporation. If delayed, a penalty of ₹100 per day applies.
Yes—an LLP can conduct multiple activities related to its core business. However, unrelated activities (e.g., trading and legal consultancy) cannot be carried out under the same LLP. These activities must be specified in the LLP Agreement and approved by the Registrar.
No. LLPs must be formed to carry on lawful business with a view to profit. Non-profit purposes are not permitted.
