LLP Incorporation

LLP (Limited Liability Partnership) basically is a hybrid of both Partnership Firm and Company, which runs in the concept of Partnership but the liabilities of the partners are limited just like Companies and also both LLP and Companies are govern by MCA (Ministry of Corporate Affairs). Basically LLP gives the benefit of both Partnership Firm and Company in a Single Form of Organization.

The concept of LLP was Introduced in India in the Year 2008 for the very First time by the Limited Liability Partnership Act, 2008. Limited Liability Partnership Act, 2008 regulates the Limited Liability Partnership (LLP) in India.

Minimum 2 Partners are required for Incorporation and to run the LLP but there is no maximum limit for partners are given in the Act.

Minimum 2 Designated Partners should be in LLP who shall be Individuals and at least one should be Resident in India. The LLP govern by MCA (Ministry of Corporate Affair) and regulated by Limited Liability Partnership Act, 2008. But the rights, Duties, Obligations Profit Sharing etc. should be governed by the LLP Agreement.

CS Club India helps you to register your LLP across India at a very reasonable price. You can register your LLP with us in a few easy steps. We will provide you facilities at the time of Incorporation. Such as:

• Name Reservation (RUN Application)
• PAN & TAN
• Draft of your LLP’s constitution (LLP Agreement)
• Certificate of Incorporation
• GST Registration Certificate

Features Of LLP:

• Separate legal entity just like companies
• The liability of each partner is limited to the contribution made by the partner
• cost of forming an LLP is low
• No requirement of minimum capital contribution
• Less compliance and regulations
• Minimum 2 Designated Partners required but no limit of maximum Partners.
• Rights and Duties of Partners are governed by LLP agreements, so they can decide there Terms and Conditions with There Mutual Consent.

Advantages of LLP:

• Separate separate legal entity just like companies
• liability of each partner is limited to the contribution made by the partner
• No requirement of minimum capital contribution
• LLP gives Advantages of both Partnership Firm and Company
• No Partner will be responsible for any kind of misconduct done by any other partner
• Incoprporation is cheaper than Company

Disadvantages of LLP:

• Penalty and Non Compliance : As LLP has minimal Compliance but in case of non-compliance heavy penalty will impose in LLP’s in comparison to Companies.
• Winding Ups and Dissolution of LLP: In case of minimum Partner requirement goes below 2 for 6 months LLP will be dissolve.
• Difficult to Raise Capital : LLP can not raise equity and Other shares like Companies. Angel Investors and Ventures can not invest in LLP as they needs to become partner for contribute in LLP. Only Partners can raise Capital.

LLP Registration Process:

• Obtain Class 3 DSC for all Proposed Partners
• Apply for Name Reservation (can apply upto 2 names)
• Prepare Documents for Incorporation
• Fill the information in Incorporation Forms (FiLLip)
• Attach DSC and submit the forms
• Got Certificate of Incorporation
• Prepare LLP Agreement and Submit within 30 days from date of Incorporation.
• Apply for Bank account Opening and partners Contribute their Contribution in the Bank Account of the LLP.