LL Partnership
Limited Liability Partnership
A Limited Liability Partnership (LLP) is a body corporate which is a distinct legal entity separate from that of its partners. It has perpetual succession and a common seal. It enjoys the benefits of a partnership firm while having the status of a body corporate.
Advantages of LLP:
- Status of a body corporate
- Separate legal entity
- Limited liability of partners
- No limit on maximum number of partners
- Fewer compliance requirement
- Perpetual existence
- Perpetual succession
- Flexibility
- Registration
- Bound by LLP Agreement
- Easy to wind up
Limitations of LLP:
- More legal compliance than a partnership firm
- Difficulty in alternation of ownership
- Stringent corporate offenses and penalties applicable
- Restrictions on raising External Commercial Borrowings
- Specific rules for Foreign Direct Investments
- Inability to raise Venture Vapital funding
Steps for Registration of LLP:
1. Apply for a DIN/ DPIN by filing Form DIR-3 at the MCA portal
2. Acquire Digital Signature certificate for all the partners
3. Get a suitable name approved for the LLP by the Ministry using Form “LLP-RUN”
4. File the incorporation form “FiLLiP” and get the LLP registered at the MCA portal
5. File the initial LLP agreement using “Form-3” within 30 days of its incorporation
Documents required for registration:
1. Identity Proof of Partners
2. Address Proof of Partners
3. Residential Proof of Partners
4. Photograph of Partners
5. Passport of Partners (in case of Foreign Nationals/ NRIs)
6. Proof of Registered Office Address of LLP