There are many benefits associated with it. The main reason why people choose to register an LLP when considering their company registration in India is that it implies that even with business partners replacing their rights & liability the interests remain unchanged.
If you want to register your company for conducting a small business then LLP formation in India 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 for LLP registration in India. 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.
Is Foreign Direct Investments (FDI) permitted in LLP?
Yes, the Foreign Direct Investments (FDIs) are permitted in LLPs, but Foreign Institutional Investors (FIIs) and Foreign Venture Capital Investors (FVCIs) will not be allowed to invest in LLP’s.
Who can become a partner at an LLP?
Any individual or body corporate can be a partner in LLP.
What are the requirements for the incorporation of LLP?
You must have the designated partner identification number (DPIN/DIN) for all the partners, your DISC and a copy of e- form.
What is the cost of registering LLP in India?
This is a tricky question to answer, there are two variables that are in the picture here. One is the government fees that is generally the same across India, another is consultant fees. Consultants like us offer several packages for LLP registration in India, depending upon the complexity of the case we recommend our clients for choosing a package. At times the costs are all inclusive, however there might be instances where certain extra elements might be required, for that you must contact one of our executives to get an exact estimate of costs involved.
Can NRIs / foreign nationals be designated partners in an LLP?
Yes, an NRI can become a designated partner in LLP, provided he has a valid DIN. Having mentioned that we would also like to tell you that in a LLP at least one partner should be Indian. To know more connect with us. Such things should be made clear before you register LLP in India.
Is LLP Registration in India to be renewed every year?
No, once an LLP is registered in India then you don't need to get it renewed. It is legally valid till the company is officially closed.