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Limited Liability Partnership

Limited Liability Partnership

A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. In an LLP, each partner is not responsible or liable for another partner's misconduct or negligence. LLP is a new corporate structure that combines the flexibility of a partnership and the advantages of limited liability of a company at a low compliance cost. Owing to flexibility in its structure and operation, it would be useful for small and medium enterprises, in general, and for the enterprises in services sector, in particular. Internationally, LLPs are the preferred vehicle of business, particularly for service industry or for activities involving professionals. LLP is governed by the provisions of the Limited Liability Partnership Act 2008.

Characteristics of LLP

  • The LLP shall be a body corporate and a legal entity separate from its partners

  • Every LLP shall have at least two partners and shall also have at least two individuals as Designated Partners, of whom at least one shall be resident in India.

  • The LLP shall be governed by the provisions of the LLP  Act, 2008 .

  • Easy to Incorporate with much more less Compliances as Compared to a Company

  • The LLP will be a separate legal entity, liable to the full extent of its assets, with the liability of the partners being limited to their agreed contribution in the LLP.

  • No requirement of minimum capital contribution

  • It has a separate legal entity just like companies

Documents of Partners:

  • PAN Card/ ID Proof of the Partners

  • Address Proof of the partners

  • Residence Proof of Partners

  • Photograph

  • Passport (in case of Foreign Nationals/ NRIs)

Documents of LLP:

  • Proof of Registered Office Address

  • Digital Signature Certificate

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