What is Limited Liability Partnership?
The Limited Liability Partnership is a popular choice among entrepreneurs since it combines the advantages of both a partnership firm and a corporation into a single entity. The merits of a partnership along with limited liability business are combined in a Limited Liability Partnership. In India, it began in January 2009, and it quickly became a hit with entrepreneurs and professional services. The purpose of the Limited Liability Partnership was to create a simple corporate structure that would benefit owners by limiting their liability.
At least, one of the two minimum designated partners must be residing in India. The LLP agreement governs the rights and responsibilities of chosen partners. They are directly accountable for ensuring that the provisions of the LLP Act, 2008 are followed. This type of entity is commonly used by law firms, accounting firms, private equity, venture capitalists, architects, and real estate firms. This corporate structure has several advantages, including liability limits and simplicity of compliance.
Limited Liability Partnership Firm is a corporate form of partnership firm. Limited Liability Partnership is also known as LLP. Limited Liability Partnership can be formed by 2 or more partners.
In an LLP, one partner is not responsible or liable for the misbehavior or carelessness of another partner.
An LLP shares all of the characteristics of a traditional partnership firm, with the exception of the same legal entity status and unlimited responsibility of the partners. As a result, limited liability partnerships have a separate legal existence and identity from their participants. Furthermore, its partners are only liable to a limited extent.
Advantages of LLP Registration
There are certain benefits of LLP Registration (Limited Liability Partnership) in the business which are given below:
1. Partners personal assets are protected from limited liability.
2. LLP has a better image and credibility as compared to normal firms.
3. Easy Compliances requirement as compare to Company.
4. No Audit Requirement till certain level of annual turnover.
5. Business Continuity Remains, Partners may come and go.
6. There is no minimum capital contribution requirement.
Documents Required for LLP Registration
1. Photo
2. PAN Card
3. Aadhar
4. Address Proof
5. Proof of Identity
