At the Act of 2008, the LLP was regulated in India. LLP is the characteristics of both the partnership firm and company.in this partnership minimum 2 partners are required to incorporate an LLP However, there is no upper limit on the maximum number of partners of an LLP.
Importance of LLP
There should be a minimum of 2 designated partner who shall be individuals, and at least one of them should be resident in India. Both the partner right and duties are governed by the LLP agreement. The purpose behind this record is to build up a reasonable business connection between members, guaranteeing that the rights and interests of every person and the LLP overall are protected.
A LLP’s name should be unique, and it should not be something very similar or like the name of any existing organization, LLP, or brand name that is registered or applied.
Document required for LLP
- Both partner’s recent passport size photo.
- Pan card of each partner.
- Each partner’s address proof (bank statement or passbook, electricity bill, telephone bill, aadhar card or any utility bill).
- Specimen signature
- Registered office address proof – electricity bill with rent agreement and NOC / ownership proof of the proposed registered office
- The agreement of stamp paper of the relevant state in which the LLP will be incorporated.
- Copy of each and every partners’ mobile bills, telephone bills, electricity bills, or bank statements with current addresses
Choosing LLP which are the best option for you?
- Ease of incorporation
- No limit of business owner.
- LLP must registered atleast 2 partner.
- One of the LLP designated partners must be a resident of India.
- LLP is to be audited when its turnover is equal to or more than ₹ 40 lakh and when its total capital contribution is equal to or more than ₹ 25 lakh.
- Tax benefits.
- Capital in the case of an LLP is determined by the needs of the business and the participant’s contributions to the partnership. The amount of capital determines the Stamp Duty on the deed
- There is no capital minimum capital requirement for LLP.
- LLP have more flexibility as compared to company.
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