What is LLP?

A LIMITED LIABILITY PARTNERSHIP (LLP) is a business vehicle that came into force in 2008 by the act of Parliament. LLP is that form of the Partnership firm in which Liability of all the partners is Limited. One of the major advantages LLP is that the partners are liable for only that much amount which they agree to bear at the time of their admission.

This form of business structure is most suitable for professionals who desire to come together and provide their services with the limit on liabilities.

Benefits of LLP

Limited Liability: One of the major advantage in LLP is Liability of Partners are Limited.

No Minimum Contribution Requirements: In LLP there is no Requirement of Minimum Contribution and partners can start their business with any Amount.

Less statutory Compliances: In LLP there are fewer compliances as compared to other business entity.

Audit in LLP:  Requirement of Audit in LLP arises when

(i)The contributions of the LLP exceeds Rs. 25 Lakhs

Or

(ii)The annual turnover of the LLP exceeds Rs. 40 Lakhs

 

Documents required for LLP REGISTRATION

The following documents are mandatory to be filed by every partner for incorporation of LLP in India:

PAN Card- Permanent account number (PAN) is a 10 digit alphanumeric number that is issued by the Income-tax department to every person who filed an application in this regard. Submitting a valid PAN card is mandatory for every Partner who is an Indian National.

Note: In Case of Foreign Partner “Passport “is Mandatory

Identity Proof: Along with the PAN card the proposed Partners is required to file an identity proof. The following documents can be submitted as the identity proof.

  • Passport
  • Election Card or Voter Identity Card
  • Driving License
  • Aadhaar Card

Residential Proof: Partners have to submit residential proof at the time of incorporation of the LLP. The residential proof submitted must contain the name & Address of the Partners and must not be older than two months.

The following documents are acceptable residential proof:

  • Bank Statement
  • Electricity Bill
  • Telephone Bill
  • Mobile Bill/Landline Bill

Poof of Registered office: For proof of address of the Registered Office some documents must be submitted during the incorporation of the LLP and documents should not be older than 2 Month.

The following documents are acceptable as registered Office Proof

  • Electricity Bill
  • Telephone Bill
  • Mobile Bill/Landline Bill
  • Gas Bill
  • No objection certificate from the Landlord.
  • Limited Liability Partnership Agreement

Subscriber sheet- Every LLP is required to file the subscriber’s sheet along with other documents like registered office address proof and landlord NOC is the LLP subscriber sheet.  This subscriber sheet contains the details of designated partners of the LLP. One thing to be noted here is that the subscriber sheet must be witnessed by a Professional like Lawyer or Chartered Accountant or Company Secretary or Cost Accountant.

For more information or any other query feel free to get in touch with lawdef experts anytime.