Limited Liability Partnership Registration
Limited Liability Partnerships(LLP) is a new form of business model that combines ‘Company’ and ‘Partnership’ in a single business. In India, this business model was introduced in 2005 with the implementation of the Limited Liability Partnership Act, 2008.
LLP is a first class example of the partnership business. Generally, entrepreneurs hesitate to get involved in a partnership business due to its unlimited business feature and several risk factor. Therefore, to do away with this problem and LLP as introduced finally.
In fact, LLP is a separate entity can be created in India when 2 persons join hands with an intention to earn the profit. LLP is easier to manage as it is a supposed to follow the minimal post registration compliances.
Frequently Asked Questions
WHAT IS THE DIFFERENCE BETWEEN LLP AND PRIVATE LIMITED COMPANY?
An LLP consists of partners whereas a private limited company has shareholders
WHO IS RESPONSIBLE FOR MISCONDUCT OR NEGLIGENCE IN LLP?
A Partner who has done any misconduct is responsible for his own act, not the other partners.
WHAT IS (DPIN) DESIGNATED PARTNER IDENTIFICATION NUMBER?
The Unique Number is required to allot to an Individual which remains valid for whole life of the individual and is required to become Partner of any LLP.
HOW CAN WE SELECT A NAME OF THE LLP?
Firstly we just need to find a unique name as prefix and promoters need to provide a name of the proposed LLP along with the significance of the word. Secondly, the name needs to include a word about the LLP business activity. Finally, before selecting Names it will be advisable to check on Google, MCA Portal, MCA Guidelines and Trade Mark site the availability of Name.
DO PARTNERS HAVE TO BE PRESENT PERSONALLY TO INCORPORATE A LLP?
No, partners are not required to present personally because documents can be filed online at any place.
HOW MUCH TIME WILL IT TAKES TO INCORPORATE A LLP?
To incorporate an LLP we required approximately 22 working days. The time taken for incorporation will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure a speedy process of incorporation, please choose a unique name for your LLP and ensure you have all the required documents are provided before starting the incorporation process.
IS COST OF INCORPORATING A LLP IS LESSER THAN A PRIVATE LIMITED COMPANY?
The cost of registration is almost the same for both.
CAN A LLP OWNS PROPERTY IN ITS NAME?
An LLP can own and enjoy property in its own name, partners are not owners of the company’s property.