A Limited liability partnership (LLP) is governed under Limited Liability Partnership Act- 2008, in which partners have limited liabilities.LLP exihibits the elements of both partnerships and corporation .Limited Liability partnership provides advantage of limited liability to its owners and at the same time requires minimal maintenance .
The Major difference between a company and a LLP is that LLP has less regulatory and compilance are simple as compared to a company which makes it easy and more cost effective to manage business.
Document Required For LLP Registration
At least two partners are required for LLP registration. The maximum partners can be 200.
The process time for registration of an LLP is 14 days from the date of submission of all the aforesaid documents and filing of registration fees. (Rule 12(1) of LLP Act, 2008)
Appointment of at least two “Designated Partners” is mandatory for all LLPs. And both shall be individuals and at least one of the Designated Partners shall be a resident of India.
In case of a LLP in which either one or all the partners are bodies corporate, then at least two individuals who are partners of such LLP or nominees of such bodies corporate shall act as designated partners.
‘LLP’ is required to get their books of accounts audited when the total revenue is more than INR Rs. 40 lacs or total capital of partners exceeds INR Rs. 25 lacs.
Advantages of LLP