llp registration online in india Archives - Business , Financial & Legal Consultant In India

April 25, 2023April 25, 2023

A Guide to Unregistered Partnership to Limited Liability Partnership Conversion

One of the choices open to business owners who want to grow their company is the creation of a Limited Liability Partnership (LLP). It is an excellent technique to safeguard the owners’ private assets while enabling them to raise more money and resources. However, what if you already have a partnership and want to change it into an LLP? This article will go over the stages involved in transforming an unregistered partnership into an LLP as well as the associated legal ramifications. The advantages and potential disadvantages of creating an LLP will also be covered. Connect with BiatConsultant to transform your unregistered partnership into an LLP using a single platform.

Overview of Limited Liability Partnerships (LLPs) and Unregistered Partnerships

A business arrangement known as an unregistered partnership is one in which two or more people join forces to operate a business for profit. The partners in an unregistered partnership are personally responsible for the debts and obligations of the company. As a result, the partners can be forced to use their personal assets to settle obligations if the company is unable to pay them.

The components of a corporation and a partnership are combined to form a limited liability partnership (LLP), a type of company organization. The partners in an LLP are not individually responsible for the debts and obligations of the company. This implies that the assets of the partners are safeguarded in the event that the company is unable to pay its debts. Because they provide the advantages of a partnership (such as the ability to share earnings and losses) while shielding the partners from personal liability, limited liability partnerships (LLPs) are frequently favored by professional service firms, such as law or accounting firms.

Benefits of Transforming an Unregistered Partnership into an LLP

The transformation of an unregistered partnership into a limited liability partnership (LLP) has various benefits:

Limited Liability Protection: One of the key advantages of an LLP is that the partners’ liability for the debts and obligations of the company is restricted. This implies that the assets of the partners are safeguarded in the event that the company is unable to pay its debts. The partners in an unregistered partnership, on the other hand, are responsible for the debts and obligations of the company.
Greater Credibility: Because an LLP is a more official company structure than an unregistered partnership, potential clients and business partners may view it as having greater credibility.
Separation of Personal and Business Funds: An LLP treats the company as a separate legal entity, which can assist in making a distinction between personal and business funds. This can make it simpler to handle the company’s finances and may be especially helpful for partners who desire to keep their personal assets separate from the company’s assets.
Potential Tax Benefits: LLPs may qualify for certain tax benefits, such as the option to file a tax return as a partnership rather than as a partnership with each individual partner.
Easy to Add New Partners: An unregistered partnership may need to dissolve and create a new one in order to add new partners. LLPs, on the other hand, make it simple to bring on new partners without ending the partnership.

In general, transforming an unregistered partnership into an LLP can offer enhanced credibility, increased liability protection, and potential tax benefits. It may also make it simpler to recruit additional partners and manage the company’s finances.

How to Transform an Unregistered Partnership into an LLP

These steps must be followed in order to register a limited liability partnership (LLP) in India:

Obtain a Digital Signature Certificate (DSC) for the proposed directors of the LLP: Obtaining a Digital Signature Certificate (DSC) for the proposed directors of the LLP is the first step in registering an LLP. Government-approved certification organizations issue the DSCs.
Obtain a Designated Partner Identification Number (DPIN): Following the receipt of DSCs, the proposed directors must submit an application for a DPIN via the MCA portal.
Obtain Name Approval: The following step after acquiring DPINs is to submit an application for name approval. The name must be distinct and not similar to any LLP or company already in existence.
Submission of Incorporation forms: After the prospective directors’ names have been authorized, the LLP Incorporation forms must be submitted to the MCA. The LLP Agreement, Statement of Capital, and necessary papers are among these documents.
Registration Fees Payment: The payment of the registration costs is the next step. Through the MCA site, the costs may be paid with a credit card or through net banking.

Before Converting an Unregistered Partnership into an LLP: Things to Think About

Review the Partnership Agreement: You should review the partnership agreement before converting an unregistered partnership to an LLP. The partnership’s ownership structure, rules, and regulations should be described in this document.
Analyze the Advantages and Disadvantages: Numerous advantages of an LLP include reduced taxation, less liability, and improved reputation. However, there are certain disadvantages that you should take into account, such as more paperwork and expenses.
Consult a specialist: Before deciding to convert an unregistered partnership into an LLP, it is crucial to speak with a skilled professional. Given that BiatConsultant is one of India’s major legal services platforms, you can select them for any legal proceedings.
Calculate the Cost: Changing an unregistered partnership into an LLP may be expensive. You should calculate the cost of submitting the required documents, registering the LLP, and any other expenses involved.
Once you’ve made the decision to change a non-registered partnership into an LLP, you should draught an operational agreement. The procedures for decision-making, conflict resolution, and LLP dissolution should be outlined in this document, together with the rights and obligations of each partner.
Prepare the Required Documents: In order to finish the conversion procedure, you must prepare and submit the required paperwork to the appropriate government agencies. The articles of association must be submitted, the LLP must be registered, and all necessary costs must be paid.

Conclusion

It can be concluded that changing an unregistered partnership into a Limited Liability Partnership (LLP) is a wise decision. It makes the company appear more professional, provides limited liability, and enhances its corporate image. The procedure is also rather simple. However, it’s crucial to conduct thorough research to make sure you adhere to all applicable regulations. Additionally, it is advised that you get the assistance of a licensed attorney or expert legal counsel during the conversion process. You can use the full range of services offered by BiatConsultant to get assistance with the conversion process and ensure that you follow all applicable rules.

Read Our Other Blog to know More About LLP – Justifications for Selecting An LLP (Limited Liability Partnership)

April 6, 2023April 6, 2023

Some Ideas on Forming a Limited Liability Partnership for Your Small Business

Are you a small business owner struggling to find the perfect business structure to match your needs? Look no further than the Limited Liability Partnership (LLP). This type of business structure offers a unique combination of flexibility and protection that makes it ideal for small businesses. In this blog post, we’ll explore the top five advantages of forming an LLP, including tax benefits, shared liability, ease of management, and more. By the end of this post, you’ll have a clear understanding of why an LLP may be the perfect fit for your small business. So, let’s dive in!

Benefits of Limited Liability Partnership for Your Business

A Limited Liability Partnership (LLP) Company is a business structure that provides a combination of flexibility and protection to its partners. Through the LLP registration process, the company is formed as a hybrid of a general partnership and a limited liability company. This means that the partners of an LLP can enjoy the benefits of a general partnership, such as flexibility in governance and management, while also having their personal assets protected in the event of the company’s insolvency. This protection is particularly important for small and medium-sized businesses, where the partners may have invested significant personal funds into the company. With an LLP company, they can rest assured that their personal assets are safeguarded, even in the event of bankruptcy or legal action. Overall, the flexibility and protection offered by an LLP make it an attractive option for entrepreneurs and business owners seeking to establish a new venture.

Moreover, it’s important to note that LLP company registration is a relatively easy process. The legal requirements for setting up and managing an LLP are minimal, and the associated costs are typically lower than those associated with forming a corporation. Additionally, an LLP provides its members with greater flexibility in terms of management structure, which can be especially beneficial for small businesses. All these factors combined make an LLP a highly attractive option for entrepreneurs and established companies alike. So if you’re looking for a simple and cost-effective way to protect yourself from personal liability while running your business, an LLP may be the perfect solution for you. Don’t hesitate to explore this opportunity and seize the benefits of this type of business organization!

Understanding the Basics of an LLP

An LLP or Limited Liability Partnership Company is a type of incorporated business structure that offers a lot of benefits to its members. One of the most significant advantages of an LLP is the limited liability protection it provides its members. This means that the personal assets of each member are not at risk in case the company faces financial difficulties. An LLP is similar to an LLC in this regard, making it an attractive option for businesses operating in industries where there is a high risk of liability, such as professional services.

Moreover, an LLP enjoys tax advantages that make it a preferred option for many businesses. The members of an LLP are not required to pay taxes on the company’s profits. Instead, the profits are distributed among the members, who are then responsible for paying taxes on their individual share of the profits. This tax structure can help businesses reduce their tax liabilities significantly.

In conclusion, establishing an LLP can be a wise decision for businesses looking for limited liability protection and tax advantages. It is highly recommended for businesses operating in industries that carry a high level of risk or require specialized skill sets, such as accounting, law, or consulting firms. Overall, an LLP is a dependable business structure that can provide members with peace of mind while enabling them to work in their preferred industry.

Besides, LLPs also offer a flexible and favorable tax structure, making them a highly preferred choice for many entrepreneurs. Along with the liability and tax benefits, LLPs are also easy to set up and manage, with fewer compliance requirements and lower registration fees compared to other forms of business structures. However, it is important to note that LLP registration and compliance requirements vary from country to country, so it is essential to seek professional assistance before establishing an LLP. In conclusion, the Limited Liability Partnership Company model is a great option for small businesses looking for protection, flexibility, and ease of management.

Advantages of Forming an LLP

When it comes to starting a new business venture, one of the most important decisions that entrepreneurs must make is choosing the legal structure of their company. For those considering a partnership, forming a Limited Liability Partnership (LLP) Company can be an excellent option. With an LLP, partners can enjoy the flexibility of a partnership while still gaining the liability protection of a corporation. This means that each partner’s personal assets are protected against potential business liabilities or legal issues, which can be especially valuable in today’s litigious society. Additionally, thanks to advancements in technology, it has never been easier to register an LLP online in India. Entrepreneurs can simply visit an online LLP registration portal and complete the necessary forms and documentation to establish their new company. Overall, forming an LLP can be an attractive option for those looking to start a new business venture while minimizing their personal risk and maximizing their flexibility.

Thereafter, it is easy to see why so many people choose to form an LLP. The limited liability aspect provides some protection to partners, ensuring that their personal assets are not at risk in the event of business insolvency or legal issues. This makes it an attractive option for those who seek to start their own business while minimizing risk. With the added benefit of simpler management and tax filing procedures, the LLP is a viable option for entrepreneurs looking to build a successful business.

The Pros and Cons of Forming a Limited Liability Partnership Company

LLP or Limited Liability Partnership Company is a popular business structure among entrepreneurs due to its numerous advantages. One of the main benefits of forming an LLP is that its members are more protected in comparison to other business structures. LLP members have limited liability, which means they are not personally liable for the company’s debts and obligations. It provides peace of mind to business owners who can focus on growing their business without worrying about being held liable for any potential losses. This feature makes the LLP an attractive option for those looking to start a business due considering the risk management benefits it offers. Therefore, forming an LLP can prove to be a wise decision for those entrepreneurs who want to safeguard their personal assets and reduce the risks associated with running a business.

For entrepreneurs and small business owners, LLPs are a common business form. One of the primary advantages of LLPs is the flexibility they offer in terms of taxation. As compared to traditional partnerships, where partners are taxed as a single entity, LLPs allow members to pay tax on their share of profits. This means that members are only taxed on what they actually earn, resulting in lower tax burdens. This flexibility is particularly useful for businesses that have partnered with varying income levels or who invest different amounts of capital into the business. Overall, LLPs are excellent choices for entrepreneurs seeking a business structure that offers greater flexibility and tax efficiency.

Meanwhile, the concept of Limited Liability Partnership (LLP) has revolutionized the business world by providing a vast range of benefits to business owners. One of the most significant advantages of forming an LLP is the flexibility it offers to members to share resources and capital without the need to create subsidiaries or holding companies. As a result, each member can retain their individual business identity and at the same time benefit from shared resources and assets. Additionally, as the name suggests, the LLP structure ensures limited liability for its members in case of losses or legal disputes, making it an attractive option for entrepreneurs looking to minimize risk while maximizing returns. Thus, opting for an LLP structure provides a win-win situation, aligning with the needs of modern-day businesses and their owners.

Final Say

In conclusion, forming a Limited Liability Partnership can be a game-changer for small business owners. It offers flexibility and protection that can help boost growth and minimize risks. As discussed in this blog post, the advantages of an LLP extend beyond just tax benefits and shared liability. The ease of management, ability to attract new partners, and clear ownership structure are all compelling reasons to consider this type of business structure. So, if you’re a small business owner looking for a better way to structure your company, the LLP is definitely worth considering.

March 16, 2023March 16, 2023

Complete Guide to Stay Organized and Compliant for LLP Registration in India

While Limited Liability Partnerships Registration (LLPs) are corporate company arrangements, they contain the finest traits and advantages of both companies and partnerships. They include restrictions on owners’ liability, a separation of management from ownership, and a requirement for registration. Professional know-how and entrepreneurial spirit can work together in this way to operate in a flexible, creative, and effective way.

The LLP agreement, a document signed by all of the partners and containing all the terms and conditions mutually agreed upon by them, is what determines whether an LLP is a partnership firm or not. The LLP Agreement contains information about the partners’ capital contributions, their rights and obligations, the profit-sharing percentage, and the process for admitting and dismissing partners.

What prerequisites must be satisfied before establishing or going for an LLP registration online?

You must first satisfy the following requirements in order to LLP registration online Done:

A number of partners: At least two partners are required to register an LLP. The number of partners that an LLP may have, however, is not capped.
Minimum Prescribed Capital: There is no required minimum capital to establish an LLP. For the firm to run well, the partners must inject enough money, though.
The number of designated partners is: The partners of an LLP are not required to oversee the operation of the company, in contrast to the partners of a partnership firm. The minimum number of chosen partners for this purpose is two, with at least one of them having to be an Indian resident. A firm may have a maximum of fifteen Designated Partners.
Name: The name of the LLP must be distinctive, unique, and not the same as the name of another LLP or firm that already exists. A registered trademark or a trademark application must not be identical to the name. To learn more about choosing a name that is appropriate for an LLP, read our blog post on name standards.
Before beginning the process of its establishment and registration, the LLP must have a registered address for its principal office or place of business.

What advantages come with LLP Registration in India?

To benefit from both types of company organizations, Limited Liability Partnerships (LLP) combine the greatest traits of private limited companies and partnership firms. The list of all such advantages that come with LLP Registration in India can be found below.

Partners’ liabilities are restricted in the proportion that has been mutually agreed upon.
An LLP has a distinct legal character as a result of its registration or incorporation.
Due to the fact that it has a distinct legal personality, an LLP is able to make transactions and open bank accounts in its name.
An LLP can be created for less money than a business.
Less compliance is necessary for an LLP than for a Private Limited Corporation.

What paperwork is necessary for Online LLP registration in India?

Documents of all partners, paperwork for the applicant’s designated partner, documents for the registered company address, and other legal draughts can all be classified as necessary for LLP registration. All of the paperwork required for Online LLP registration in India is mentioned here. Your LLP registration application form may be rejected if any of these documents are missing.

Documents for Partners and Designated Partners

Evidence of Partners’ Identity

All partners, including the applicant’s chosen partner, are required to present one of the following documents as identification:

Passport Voter ID
driving permit
ID card, Aadhar

The PAN cards of all partners are necessary for the incorporation of the LLP in addition to the ID evidence. Make sure the paperwork is accurate and up-to-date before submitting them to the Registrar of Companies for the establishment of the LLP.

Proof of Partners’ Address

Account Statement
Notably, none of them should be older than two months. Power. Telephone. Water.

Photograph A passport-sized, well-colored photo with a white background must be submitted by each partner as well as the applicant’s designated partner.

Passport The spouse must present his passport as identification proof if he or she is a non-resident Indian or a foreign national. This document must be notarized and apostilled by the relevant authorities or the Indian Embassy of the country where the foreign national or NRI is based.

Documents pertaining to the LLP’s registered offices

Before starting the process of formation, an LLP must have a registered address for its principal office or place of business. However, within 30 days after the date of incorporation, it must have a registered office address and notify the Registrar of Companies in form INC 22. If it doesn’t have a registered office location, it can still proceed with incorporation with a temporary address.
The rent agreement and the owner’s no objection certificate must be supplied during the LLP registration process if the registered office is rented. The LLP may not use the facility as its “registered office” without the landlord’s consent.
Moreover, any of the following utility invoices that are no older than two months can be provided as proof of address: a gas, electricity, telephone, or water bill.

Certificate for Digital Signature (DSC)

A digital signature certificate must be used to sign the LLP registration application online. Only the signatory designated partner is required to have a DSC before the LLP may be registered because the application for LLP registration can be signed by any designated partner who is permitted to do so, as well as by any or all of the partners. The digital signatures of partners may also be required on a number of forms and applications after registration, though. Hence, getting a DSC for future use is encouraged for all partners and authorized partners.

Step-by-step LLP registration procedure followed for LLP Registration Online In India

The following are the actions to take in order to get LLP Registration Online In India Done:

getting the applicant’s selected partner’s DPIN and DSC
To minimize any headache or difficulty during the registration process, gather all the documents needed for LLP registration in advance.
A Limited Liability Partnership must be registered (new registration).
Using Form 1 or the RUN application, reserve the LLP’s name.
Form 2 must be completed and submitted along with the other documentation for LLP registration.
Create and sign the LLP Agreement after the LLP is registered, then submit it within 30 days after the registration date.

Conclusion

Due to its formal incorporation, an LLP Registered in India has a separate legal existence and is entirely responsible for upholding its commitments. In an LLP, the partners’ rights and obligations are defined by mutual agreement. The process for forming an LLP and the necessary paperwork has previously been described above.

November 22, 2022November 22, 2022

Thing To Know Before Registering for a Limited Liability Partnership Company In India

LLP Registration is a type of association structure like a partnership firm however with an element of limited liability of partners. It is compulsory to record yearly LLP gets back to the Ministry of Corporate Affairs (MCA). LLP has a ton of advantages when contrasted with a Partnership firm or Sole Proprietorship firm. Our objective at Biat Consultant is to finish your enlistment in a Powerful, Proficient, and Practical way. This type of association ought to have no less than 2 accomplices (assigned accomplices) and no less than one assigned accomplice ought to be an occupant of India to instate the most common way of laying out a private limited company. Proworktree provides you most effective services for Limited Liability Partnership Registration.

What are the Benefits of LLP Company Registration In India?

The benefits of Limited liability Partnership Company Registered In India are:

Separate Legal Identity
Limited Liability Benefits
Minimal Registration Cost
Other Benefits of LLP Registration

What is the Meaning of a Limited Liability Partnership?

LLP is a Limited Liability Partnership and is a corporate business vehicle that gives the advantages of limited liability of an organization to its individuals and furthermore permits them to deal with their interior administration based on commonly shown-up understanding as in the event of a partnership firm. Accomplices have lower liabilities than any obligation which might emerge in the future in maintaining the business. It contains components of both a corporate design’ as well as ‘an organization firm construction’ and is known as a half-and-half between an organization and an organization. The Accomplices are expected to contribute towards the LLP as determined in the LLP Understanding. Their portion can be in any structure for example unmistakable or theoretical, versatile or enduring property, monies and money.

As far as a responsibility under a Limited Liability Partnership the Company is at risk for misfortunes or obligations if emerges in maintaining the business where the singular individuals from the LLP will not be at risk for such misfortunes or obligations.

Example

XYZ LLP has 2 accomplices J and K, and XYZ takes credit of Rs.20 lakhs and can’t reimburse the advance. Its capital is Rs. 10 lakhs where J should contribute Rs. 6 lakhs and K Rs. 4 lakhs however both the accomplices contribute s. 5 lakhs as J contributed Rs. 3 lakhs and K contributed Rs. 2 lakhs. In such a case LLP will be responsible for up to how much Capital for example Rs. 10 lakhs and J and K will be responsible for Rs. 5 lakhs according to their portion of the commitment. The Leaders can’t recuperate more sums, assuming such sum is lacking to get the obligations free from the LLP.

What are the Advantages and Disadvantages of a Limited Liability Partnership Company Registered in India?

The advantages of a limited liability partnership Company Registered in India are

The principal benefit of an LLP is that an LLP is more straightforward to begin and oversee and the cycle has fewer conventions.
It has a lesser expense of enrollment when contrasted with an Organization.
LLP resembles a corporate body having a different presence other than its accomplices.
LLP can be begun with any measure of least capital.
The accomplices would have limited liability to their concurred commitment in the LLP.
No prerequisite for mandatory Review.
Contrasted with Private Limited Companies, the yearly ROC consistency in LLP is lesser.
Attributable to adaptability in its construction and activity, the LLP is a reasonable vehicle for little undertakings and for speculation by funding.

The disadvantages of a Limited Liability Partnership Company Registered in India are

The primary downside or burden of an LLP is that regardless of whether an LLP has any action, it is expected to document a personal government form and MCA yearly return every year. In the event that it neglects to do as such, it might need to cause a weighty punishment.
If an accomplice has any desire to move his/her proprietorship privileges then he/she needs to get the assent of the relative multitude of accomplices.
A limited liability partnership should have no less than two individuals. Assuming that one party decides to leave the organization, the LLP might need to be broken up.
It is critical to recall that FDI in LLP is permitted exclusively with the earlier endorsement of the Save Bank of India (RBI).

What all Documents are Required for The LLP Company Registration in India?

Documents Required for LLP Company Registration in India are

Documents of Partners

ID Proofs/PAN Cards of Partners
Address Proof of Partners
Resident Proof of Partners
Photographs
Passports of NRI Partners

Documents of LLP

Address Proof of the Registered Office
Digital Signature Certificate

What is the Process Of LLP Company Registration in India?

The Process of a Limited Liability Partnership Company Registered in India are:

Obtain DSC– A digital signature certificate of the assigned individual of the proposed LLP should be gotten prior to applying for LLP enrollment. The principal purpose for acquiring DSC is that every one of the reports for the enrollment of the LLP is recorded on the web. Consequently, a digital signature is required. A DSC can be gotten from an administration-coordinated guaranteeing organization.
Apply for DIN– The subsequent stage is to apply for the Director Signature Number of the multitude of assigned accomplices of the proposed LLP. The application for Racket can be made with Structure DIR-3 and the examined duplicates of the Aadhaar or PAN Card should be appended with it.
Name Reservation- The third step is to save a name for the LLP which will be checked by the Focal Enlistment Community. It is suggested that you run an LLP enlistment name check, assuming the name you are choosing is free or not before you quote a name on the LLP registration MCA portal. The framework there will suggest other intently looking names in light of the name you are looking for. This will help in picking a name that isn’t like any current name or reserved name. Also, consequently, your LLP name would be supported in the first go. The Structure RUN-LLP should be filled to hold the name. On the off chance that the name is dismissed, the re-accommodation structure should be submitted in 15 days or less. Likewise, there is an arrangement to propose 2 names in the RUN-LLP Structure
Incorporation of LLP-

The Structure for consolidation of Limited Liability Partnership (FiLLiP) will be recorded with the Recorder having purview in the state where the enrolled office of the LLP is arranged.
Pay the charges according to Annexure ‘A’.
With the consolidation structure, an individual can likewise apply for the designation of DPIN, on the off chance that he/she is named as the planned accomplice in the LLP and doesn’t have a Commotion or DPIN.
The application for designation of DPIN is taken into consideration by two people as it were.
On the off chance that the proposed name is supported by the Central Registration Centre, the endorsed name will be filled as the name of the LLP.

File LLP Agreement–

This understanding states the mutual duties and rights among the accomplices of the LLP. Additionally, between the LLP and the accomplices.
The LLP agreement should be recorded in Form 3 online on the MCA gateway. Outstandingly, the Structure must be filed within 30 days of joining the LLP.
Finally, the LLP arrangement should be imprinted on the Stamp paper.

April 3, 2020April 3, 2020

LIMITED LIABILITY PARTNERSHIP COMPANY [LLP] FORMATION IN INDIA

The LLP stands for limited liability partnership which can be defined as a corporate entity registered under the limited liability partnership act ,2008.

It can also be defined as a hybrid form of partnership that enjoys limited liabilities and also includes features of a company.One should note that the compliances for a company are applicable to limited liability partnership.

BUSINESS WHERE LLP NEED APPROVAL FOR REGULATORY AUTHORITIES –

There are certain business activities where the limited liability partnership companies need prior authority of regulatory authorities before the beginning and usch business activities are venture capital ,banking , stock exchange ,merchant banking ,architecture , chit fund ,reconstruction , NBFC ,mutual fund etc.

All the activities marked above need the prior approval for concerned authorities and bodies before starting the business as per terms and conditions of the companies act ,2013.

FOREIGNER CAN BECOME A PARTNER IN LLP –

According to new companies act ,2013 , the foreigner can also become a partner in the limited liability company keeping in mind that there should be at least one member or partner in the company who is an indian citizen and resident of India in the previous calendar year.

CONVERSION OF PARTNERSHIP FIRM INTO LLP –

A partnership firm can be easily converted into the limited liability partnership firm according to rules defined below –

A form 17 is needed to be filed along with the form 2 for the conversion of the partnership firm into the limited liability partnership company.

One should note that an existing partnership firm by complying with the provisions of clause 58 and schedule 2 of Limited liability partnership act can be easily converted into a limited liability partnership company.

MINIMUM PARTNERS REQUIRED TO FORM LLP –

As per the Limited Liability Partnership act,2008, The minimum partners required to incorporate a limited liability partnership firm is two and there is no limit for the maximum number of partners.

A FOREIGN LLP CAN ESTABLISH BUSINESS IN INDIA –

According to the new companies act,2013 a foreign limited liability partnership company can easily establish a business in India.The process involves filing of form 27 with the ROC.

The form includes various details such as foreign LLP incorporation , two authorized representatives ,designated partners for compliances under the act.

ADVANTAGES OF FORMING LIMITED LIABILITY PARTNERSHIP COMPANY –

The advantages of forming limited liability partnership companies are defined below –

1] FEATURES OF PARTNERSHIP AND COMPANIES –

The basic and foremost advantage is that LLP includes features of both partnership firm as well as the company.Therefore both the types of feature are available here.

2] INCORPORATION COST INVOLVED –

The cost involved in the incorporation of the limited liability partnership company is very low.

3] MINIMUM TWO AND MAXIMUM PARTNERS EXEMPT –

In LLP there is no limit for the maximum number of the partners and minimum required partners for the incorporation is two.

4] AUDIT NOT MANDATORY –

There is no mandatory audit to be done in LLP unless the turnover exceeds Rs. 40 lac. And the capital contribution exceeds rs.25 lac.

5]MAINTAIN ONLY ACCOUNT BOOKS-

There are very few records to be maintained i,e only the books of account are needed to be maintained.

6] LIMITED LIABILITY OF PARTNERS –

In the case of LLP , the partners’ liability is limited to his shares and therefore the personal assets of every partner is safe and secured.