Limited Liability Partnership Company or LLP Company is a type of partnership firm which is mostly preferred by entrepreneur. It is the easiest form of business structure with the benefit of limited liability. LLP Company Registration gives freedom to partners to form a partnership structure where the liability of each partner is limited to the amount they contribute into the business. Limited Liability Partnership Company Registration or LLP Company Registration means that if the partnership fails, creditors cannot ask for partner’s personal property or income.
In short, LLP is a separate legal entity from its member that has the power to extend all its assets keeping the liabilities of partners limited. Hence, a Limited Liability Partnership is a hybrid of a company and a partnership firm.

Separate legal entity
An LLP rejoices the independent legal status, just like companies. The LLP holds different status from its partners. Such entities have the right to sue the third party in case of legal dispute and vice versa.
The contracts are signed in the LLP’s name, which aids to foster the trust of various stakeholders and renders the end-users and vendors a sense of confidence in the business.

Limited liability of the partners
The partners of such entities have limited liability. The partners’ liability is limited to the agreed contribution to the company. This indicates that they are accountable to pay only the quantum of contributions made by them and are not personally obligated to address any loss in the business. If an LLP ends up insolvent during winding up, only the LLP assets are liable for compensating its debts. The partners possess no personal liabilities, and therefore they can operate as credible businessmen.

Low cost as well as minimal compliance
The cost of incorporating an LLP is quite low compared to other business structures such as private and public limited companies. Also, the quantum of compliances is on the lower side for these entities. The LLP is mandated to file only two statements yearly basis, i.e. Statement of Accounts and Solvency and an Account return.

No scope of minimum capital contribution
The LLP can be incorporated in the absence of any minimum capital. Also, there is no requirement of procuring any amount of capital contributed by the concerned partners.

Checklist of documents required for registering an LLP

Here are the list of checklist and documents that are required during the registration of LLP in India-

Minimum of two designated partners

DPIN of all serving partners

Name of the entity, which is not identical to any prevailing company or trademark

The capital contribution made by the serving partners of the LLP

LLP Agreement

PAN Card/ Identification Proof of Proposed Partners: All proposed partners are mandated to furnish their PAN during registration time. PAN card serves as a fundamental ID proof.

Partners’ Address Proof: Proposed partner furnish any one document out of passport, Voted ID, DL, or Aadhar Card. Name as well as other information as per address proof & PAN card ought to be exactly the same.

Partners’ Residence Proof : Updated bank statement, utility bill, should be furnished as residence proof. Such bills should be the latest one, i.e. not older than 2-3 months & must entail the partner’s name as cited in PAN card.

Photograph: Partners must furnish the latest passport size photo, preferably on white background.

Passport (In Case Of Overseas Nationals/ NRIs) : To become a partner of Indian-based LLP, overseas nationals & NRIs have to furnish their passport mandatorily. Passport must be notarized by the concerned authorities in the nation of such foreign nationals and NRI, else Indian Embassy located in the nation can also sign the documents.

Foreign nationals or NRIs must facilitate address proof, bank statement, and legit identity proof enclosing the address.

Registered Office Address Proof: Registered office proof must be furnished during the registration process or within 30 days of incorporation.
If the registered office is rented, a rent agreement and a NOC from the actual land owner have to be furnished. NOC shall be the landlord’s consent to permit the LLP to use the premises as a registered office’.
Also, anyone document out of gas, electricity, or telephone bill should be submitted. The bill should not be older than two months and must reflect the address of the premise and the owner’s name.

Digital Signature Certificate (DSC): One of the designated partners must hold DSC for signing the documents electronically.