Limited Liability Partnership

 Limited Liability Partnership (LLP) is a distinct form of business entity that combines the features of a traditional partnership with the advantage of limited liability for its partners. Here's an overview of LLP:

Characteristics of a Limited Liability Partnership (LLP):

Limited Liability: Similar to a corporation, partners in an LLP have limited liability, protecting their personal assets from the debts and liabilities of the business.

Separate Legal Entity: An LLP is considered a separate legal entity from its partners. It can own assets, enter contracts, sue, or be sued in its name, separate from its partners.

Partnership Agreement: The LLP agreement defines the rights, duties, responsibilities, and profit-sharing ratio among the partners. It provides flexibility in managing the LLP as per the agreed terms.

No Minimum Capital Requirement: There is no mandatory minimum capital requirement for forming an LLP.

Perpetual Existence: LLP's existence is unaffected by changes in partners unless dissolved or wound up as per legal provisions.

Designated Partner Identification Number (DPIN): Designated partners in an LLP require DPINs for registration.

Process of Registering a Limited Liability Partnership (LLP):

Name Reservation: Choose a unique name for the LLP and apply for name availability through the LLP registration portal provided by the Ministry of Corporate Affairs (MCA).

Partnership Agreement: Draft an LLP agreement defining the rights, duties, and responsibilities of partners and specifying the profit-sharing ratio.

Documents Preparation: Prepare required documents including identity/address proofs of partners, address proof for registered office, and the LLP agreement.

Digital Signature Certificates (DSCs): Obtain DSCs for designated partners to digitally sign the incorporation documents.

Incorporation Application: File an application for LLP incorporation online through the MCA portal, providing necessary details and attaching required documents.

LLP Incorporation Certificate: Upon successful verification and processing, the Registrar of Companies (RoC) will issue the Certificate of Incorporation, acknowledging the establishment of the LLP.

PAN and TAN Application: Apply for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the newly formed LLP.