LLP Incorporation

What is LLP

LLP means “Limited Liability Partnership” entity. LLP is popular form of entity globally. In India, LLP was allowed after the enactment of Limited Liability Partnership Act, 2008. In India traditionally business was run in the form of Proprietorship, Partnership or Company.

LLP has provided a platform to Micro, Small and Medium Enterprises (MSME), traders and professionals like chartered accountants, company secretaries, lawyers, registered valuers and architects to conduct their business or profession as an LLP entity which provides limited liability and separate identity, unlike traditional Proprietorship or Partnership firm.

Features of LLP

1. Separate Legal Entity
2. Perpetual Succession
3. Internal Governance is according to LLP Agreement
4. Externally Governed by Ministry of Corporate Affairs (MCA)
5. Minimum Two Designated Partners are required , out of them One to be Resident Individual
6. No need to have any minimum Authorized Capital
7. Contribution can be in cash or kind or provision of services
8. Restructuring and dissolution like company is possible in LLP also

 Benefits of LLP

1. The cost of statutory compliances is less in LLP.
2. Mandatory Audit of accounts are required only when the turnover of LLP exceeds INR 40 Lakhs or the capital contribution in LLP is more than INR 25 Lakhs.
3. Profit can be distributed without any Dividend Distribution Tax
4. Loan can be given to partner unlike company where it is deemed to be dividend
5. Corporate Social Responsibility (CSR) is not mandated on LLP
6. Foreign Investment is allowed in LLP under Foreign Direct Investment (FDI)

Incorporation Requirements

1. Minimum two persons or body corporate
2. Digital Signature (DSC) and Directors Identification Number (DIN) of proposed Partners with identity and residential proof of proposed partners
3. Registered office in India with proof of address
4. Consent letter of each of the partners including Designated Partner.
5. Subscription page to be signed
6. List of Interest of proposed Partner in other LLP(s) or Company(s) with details of designation .
7. LLP Agreement

Our Expert Services includes

1. Assist in obtaining DIN and DSC
2. Drafting LLP Agreement
3. Handholding to complete the process of registration of LLP
4. Conversion of Company to LLP and vide versa
5. Post Registration all legal formalities