LLP which stands for Limited Liability Partnership, provides the advantages of a Private Limited Company and an LLP can be registered with a minimum of two partners or more. The LLP agreement states the rights, duties, and obligations of the Partners. In an LLP one partner is not responsible for the misconduct and negligence of the other partner. The partners are responsible for compliance and all the provisions that are specified in the LLP agreement.
Advantages of LLP
Separate legal entity: An LLP can sue and be sued in its own name, such that it is a The contracts are signed in the name of the LLP, which helps to gain the trust of various stakeholders and gives the customers and suppliers a sense of confidence in the business.
Limited liability of the partners: This means that they are liable to pay only the amount of contributions made by them and are not personally liable for any loss in the business.
Low cost and less compliance: The cost of forming an LLP is low compared to the cost of incorporating a public or private limited company. The compliances to be followed by the LLP is also low. The LLP needs to file only two statements annually, i.e. Annual Return and a Statement of Accounts and Solvency.
Step 1: Obtaining Digital Signature Certificate (DSC) and Director Identification Number (DIN). Our team shall apply for the digital signature of the designated partners of the proposed LLP. It is to be noted that the cost of obtaining DSC varies depending upon the number of partners. Our team shall obtain for the DIN through Form- 3 of all the designated partners or those intending to be designated partner of the proposed LLP.
Step 2: Name Approval
Our team shall conduct LLP-RUN (Limited Liability Partnership-Reserve Unique Name) proposed LLP in the MCA Portal which shall be processed by the Central Registration Centre under Non-STP.
Step 3: Incorporation of LLP
Our team shall file application with the Registrar who has jurisdiction over the state in which the registered office of the LLP is situated.
Step 4: File Limited Liability Partnership (LLP) Agreement
Our team of Advocates shall draft the LLP agreement and file in Form 3 online on MCA Portal.
Note- The LLP Agreement has to be printed on Stamp Paper. The value of Stamp Paper is different for every state.