What is a Limited Liability Partnership?

LLP Registration, a prime reason why it has evolved is that of its simplicity in formation and easy maintenance. It helps owners also to limit their liabilities. This is the biggest advantage of an LLP over a traditional partnership firm.

Incorporating LLP Company has both Limited Liability features of a Private Limited company and the flexibility of a Partnership firm. No partner is liable on account of unauthorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s misconduct. LLP form of organization is usually preferred by Professionals, Micro and Small businesses that are family owned or closely-held.

LLP registration procedure is the easiest and transparent process as it has a blend of the benefits of a company and partnership firm namely, limited liability feature of a company and the flexibility of a Partnership firm. Procedure of LLP registration is not lengthy as you can file your incorporation form online. Online LLP registration procedure will save you a lot of time and energy. LLP registration process includes following steps:

1. Get a digital signature (DSC)
2. Apply for Director Identification Number (DIN)
3. Get the name of the company approved.
4. Incorporation of LLP.
5. File ‘Limited Liability Partnership Agreement’

Government Fees / Cost for LLP Registration:

For registration of Limited Liability Partnership, government fees are as below. Note that there are additional costs such as DIN application fees, stamp duties, LLP form filing fees as well:

1. Limited Liability Partnership whose contribution does not exceed Rs. 1 lakh Rs. 500/-
2. Limited Liability Partnership whose contribution exceeds Rs. 1 lakh but does not exceed Rs. 5 lakhs Rs. 2000/-
3. Limited Liability Partnership whose contribution exceeds Rs. 5 lakhs but does not exceed Rs. 10 lakhs Rs. 4000/-
4. Limited Liability Partnership whose contribution exceeds Rs. 10 lakh Rs. 5000/-

However, it may vary according to the stamp duties of respective states.

Every LLP is required to have at least two Designated Partners who shall be individuals and at least one of them shall be a resident of India. The mutual rights and duties of partners shall be governed by the agreement between LLP and the partners. This Agreement would be known as “LLP Agreement”.

Do not miss about filing Form INC 20A once you start your company.

Carefortax.com is an eminent business platform and a progressive concept, which helps end-to-end incorporation, compliance, advisory, and management consultancy services to clients in India and abroad. Incorporating a Public Limited Company is easy, seamless, cheapest, and quickest with Carefortax.com! Apart from a Public Limited Company, Carefortax.com also helps entrepreneurs with Private Limited Company Registration, Nidhi Company Registration, Partnership Registration, HUF, LLP Incorporation, and One Person Company registration easily. You may get in touch with the Carefortax compliance manager on 909-993-3788 or email info@carefortax.com for a free consultation.