LLP is a versatile, legally recognized entity which enables business partners to work efficiently, to maximize profits while also minimizing their liability for the actions of other partners.

LLP agreement – Importance

A legally binding agreement entered by the members (partners) of a partnership serves as the foundation for the creation of a Limited Liability Partnership (LLP). The purpose of this agreement is to promote good faith in business relationships among the partners while protecting their rights and interests as well as those of the LLP as a whole. General partnerships are not required by law to be registered, but LLP registration must be done with an executed LLP agreement.

Documents required for LLP company registration

• Passport size photograph (recent) of partners
• PAN card of partners
• Identity proof (Aadhaar card, Passport, Driving license or Voter ID card) of partners
• Specimen signature
• Address proof of partners (Bank statement or Passbook, Electricity bill, Telephone bill, Aadhaar card or Any utility bill)
• Copies of all partners’ mobile bills, telephone bills, electricity bills, or bank statements with current addresses of partners
• Address proof of Registered office – electricity bill with rent agreement and NOC / ownership proof of the proposed registered office
• LLP agreement and the state’s stamp paper, where the LLP will be incorporated

The above documents must be self-attested.

Is LLP registration in Surat the best option?

When forming an LLP, there are a few strict requirements. You can lawfully incorporate and run an LLP if and only if you can meet the requirements listed below :-

• A minimum of two individuals must register an LLP. There is no maximum cap on the number of partners, though.
• The requirements of the business and the participant’s contributions to the partnership determine capital in the case of an LLP. The Stamp Duty on the deed is based on the capital amount. To start an LLP, there is no minimum capital requirement.
• At least one designated partner for the LLP must be an Indian resident.
• An LLP’s accounts must be audited when its turnover is equal to or more than Rs. 40 lakh and its total capital contribution is equal to or more than Rs. 25 lakh.

When you are satisfied that you meet the above basic requirements for forming an LLP, you can then assess the feasibility of doing so by reading the reasons for Limited Liability Partnership registration outlined below.

Reason for LLP registration

Gain from a company's operational simplicity and flexibility

An LLP’s main advantage is that it requires less paperwork and is simpler to set up and run. LLP registration cost is less even though they are similar to companies. Because of flexibility in its structure and management, LLP is useful for smaller firms and venture capital investment.

Less compliance and tax obligation

An LLP has lower annual ROC compliance than a private limited company because there is no requirement for a compulsory audit. Additionally, given the structure of the company, its regulatory compliance is extremely minimal. Also, there is no incidence of dividend tax in the case of an LLP.

Establish a different legal entity to reduce your liability

In an LLP, the partners’ liability is limited to the amount of their investment. An LLP can sue and be sued since it is a separate legal entity from its partners. The LLP continues to operate even after a partner dies. Furthermore, ownership of an LLP may be easily transferred to another person (transferee), however, they must be admitted as LLP designated partner. Partners and the LLP may also lend to one another.

The Gist

We advise you to gain from the experience of professionals at Finaccle while you’re determining if it would be feasible to get LLP registration done for your LLP or you’re looking to complete LLP company registration online. With constant effort to make sure that you adopt the business structure that is most suitable for your needs, our team of professionals will leave no stone unturned.

In addition, get in touch with us to avail services such as Financial, Accounting, and Legal services and for all taxation related work! Stay tuned for more such informative blog posts and share it with your close ones through the platforms below!