LIMITED LIABILITY PARTNERSHIP ACT ,2008






BACKGROUND


Limited Liability Partnership (LLP) is a separate legal entity which has the benefits of “Limited Liability”. It is governed and registered under the Limited Liability Partnership Act, 2008 and the rules made thereunder. Small and Medium Enterprises (SMEs) can function as LLP. LLP is suitable for service sector especially for the professionals like Company Secretaries, Chartered Accountants, Lawyers, Cost Accountants, etc.


SALIENT FEATURES OF LLP 


1. Separate Legal Entity / Status;
 
2.Limited Liability; 

3.Perpetual Succession;
 
4.Can sue and can be sued;
 
5.Minimum number of partners is two (individual or body corporate); 

6.No upper limit for maximum number of partners
 
7.No requirement of minimum capital contribution 

8.Easy and low cost to form 

9.Easy dissolution or winding up 

10.No need to maintain other statutory records excpet Books of Accounts 

11.Less compliances as compared to any company



IMPORTANT FACTS:



All the Designated Partners of the proposed LLP should have a Designated Partner Identification Number (DPIN). The Directors Identification Number (DIN) can be used instead of DPIN if the partner is already having a DIN.
One of the designated partner should have a Digital Signature Certificate (DSC) if he/she does not have one.
One of the Designated Partner of the proposed LLP should be a resident of India. In case of a LLP in which all the partners are bodies corporate or in which one or more partners are individuals and bodies corporate, at least two individuals who are partners of such LLP or nominees of such bodies corporate shall act as designated partners.

PROCEDURE FOR INCORPORATION OF LLP



The following things need to be ensured for the incorporation of LLP: 

1.Appoint/nominate partners and designated partners.
 
2.Obtain the DPINs and Digital Signature Certificates (DSCs)
 
3.Register a unique LLP name (applicant can indicate up to 6 choices) 

4.Draft the LLP Agreement
 
5.File the required documents, electronically 

6.Apply for the Certificate of Incorporation along with LLPIN (Limited Liability Partnership Identification Number)

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