A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. It therefore exhibits elements of partnerships and corporations. In an LLP, each partner is not responsible or liable for another partner's misconduct or negligence.
1.Separate legal entity: Like a company, LLP also has a separate legal entity. So the partners and the LLP in are distinct from each other. This is like a company where partners are different from the company.
2.No requirement of minimum capital: In the case of companies there should be a minimum amount of capital that should be brought by the members or owners who want to form it. But to start an LLP there is no requirement of minimum capital.
3.Minimum number of members: To start a limited liability partnership at least two members are required initially. However, there is no limit on the maximum number of partners.
4.No requirement of compulsory audit: All the companies, whether private or public, irrespective of their share capital, are required to get their accounts audited. But in case of LLP, there is no such mandatory requirement. A limited liability partnership is required to get the audit done only if the contributions of the LLP exceeds S77; 25 lakhs or b. If the annual turnover of the LLP exceeds S77; 40 lakhs
1.Obtain digital signature for the partners.
2.Apply for the DIN (Director Identification Number) which is necessary to become a partner in the LLP.
3.Apply for the name approval for the LLP registration.
4.Registrar of Companies issues the Certificate of Incorporation which is the proof for the registration.
5.File for a Permanent Account Number (PAN) from NSDL Website.
6.File LLP agreements and open a current bank account.
Company details can be checked on Ministry of Corporate Affairs, Companies Master Data WebsiteTo register a LLP in India, the following documents are required:
- PAN Card of the Partners.
- Address Proof of the Partners.
- Utility Bill of the proposed Registered Office of the LLP.
- No-Objection Certificate from the Landlord.
- Rental Agreement Copy between the LLP and the Landlord.