Limited Liability Partnership registration is one of the easiest process in India. With very simple compliance and procedures it takes a short time to complete and is one of the reasons many are choosing for this kind of business, especially small businesses.
ADVANTAGES OF LLP REGISTRATION
LOWER COMPLIANCE REQUIREMENTS
An LLP is much easier and cheaper to run than a private limited company as there are just three compliances per year. On the other hand, a private limited company has a lot of compliances to fulfil and conduct an audit of its books.
EASY TO DISSOLVE
LLP is easy to dissolve as compared to a private limited company registration. It takes around two to three months to complete an LLP wind up compared to a private limited company where it takes over a year.
The liability of the partners is limited to the extent of contribution to the LLP. Unless fraud has been detected, the personal assets of the partner are protected from any liability of the LLP.
An LLP is a separate legal entity and can have assets in its own name and can sue and be sued. One partner is not responsible or liable for another partner’s negligence.
The partners are free to draft the agreement as they please, with regard to their rights and duties.
MINIMUM REQUIREMENTS FOR LLP REGISTRATION
Here is what is required of all new LLP registration, at the very least:
- An LLP must have minimum two partners. There is no restriction on maximum number of partners
- At Least one partner must be an Indian resident
- The LLP should have an authorised capital of at least Rs. 1 lakh.
- Registered office doesn’t have to be a commercial space, it could also be a home.