There are many benefits associated with it. The main reason why people choose LLP’s when considering their company registration in India is that it implies that even with business partners replacing their rights, liability and interests remain unchanged.
If you want to register your company for a small business then LLP is the best route for you as it grants limited liability.
The main reason that LLP’s are so widespread in India is that the partners do not have to be mutually responsible for the problems that arise due to the other partner. This is one of the major problems that we see in many partnership companies.
It also offers you many benefits such as no minimum capital required, easy company corporation, tax benefits and so on. All these things are very much beneficial for you.
You need a minimum of 2 partners to register a Limited Liability Partnership. There is no limit on the number of partners that are present at the time of company registration.
Advantages of a Limited Liability Partnership
Registering your business as a limited liability partnership has many benefits, here are some of the best ones for your knowledge.
1. Low costs
In case of LLP’s company registration and compliances are at a much lower rate. That’s why people prefer to get registered in LLP’s.
2. Separate legal existence
In LLP, the owner and the company are considered as two separate legal entities.
3. Perpetual succession
Company incorporation as an LLP means that it is a separate legal entity from the owner.
4. Limited liability
When you pursue a company registration in India as an LLP, then it ensures that the owner’s personal aspects are not in danger even if the company is financially loss.
For registering a limited liability partnership in India there needs to be a minimum of 2 partners and 2 directors. One director should be a resident of India.
Following documents are required for the Directors of the Company-
- Self attested copy of PAN Card
- Self attested copy of Aadhaar/ DL/ Passport/Voter ID Card, any one
- One Utility Bill (Electricity Bill/Mobile Post Paid/ Landline Bill/ Bank Passbook or Statement, any one) not older than two Months
- One Passport Size Photograph
- Personal Mobile & Email ID
Additionally, the following is required for the Registered Office-
- One Utility Bill (Electricity Bill/Mobile Post Paid/ Landline Bill/Gas Passbook, any one) not older than two Months
- Lease/ Rent Agreement
- No Objection Letter from the Owner of the Premises to use the Address of the registered office of the Company
Here are some questions that will clear all the doubts that may arise in your mind about limited liability partnership.