Limited Liability Partnership (LLP) has become a preferred form of organization among entrepreneurs as it incorporates the benefits of both partnership firm and company into a single form of organisation.

Pre-requisites for Incorporating a Limited Liability Partnership

The name with which the promoters are desirous of running their business form should be unique and should not resemble with any ongoing business form as per Limited Liability Partnership Act, 2008.

A person above the age of 18 is capable to incorporate a Limited Liability Partnership and be the Designated Partner or Partner of the LLP.

There should be a minimum of two designated partners who shall be individuals, and at least one of them should be resident in India. The rights and duties of designated partners are governed by the LLP agreement. They are directly responsible for the compliance of all the provisions of the LLP Act, 2008 and provisions specified in the LLP agreement.

The individual/ body corporate who bring funds in the business are the one who are categorized as the Partner of the LLP. In this form of structure there is no upper limit on the maximum number of partners of an LLP.

There is no minimum and maximum amount stated for the infusion of funds in the company in LLP Act, 2008.

The place through which the activities of the business are to be carried on in legal terms is said to be the registered office of theLLP..The registered office should be capable of receiving and acknowledging all communications and notices as may be addressed to it.

Contact details in the form of Mail Id and phone no are to be registered at the time of incorporation of a company.

Process of Incorporation

• Availing the name of the LLP.
• Availing DSC of any one of the Designated partner of LLP.
• Documentation and procedural work
• Filing of Incorporation Fillip form with Ministry of Corporate Affairs
• Getting Certificate of Incorporation with PAN, TAN, and DIN.
• Filing Form 3 in which for the LLP Agreement executed between the Designated Partners / partners.

Benefits of Incorporating a LLP

• LLP is considered to be a booming sector as it has a separate legal entity just like company and comparatively lower cost of formation.
• The liability of each partner is limited to the contribution made by the partner.
• As compared to companies there is less government intervention and less requirement of maintenance of statutory records.
• It is more driven by the Agreement between the Designated Partners / Partners of the LLP.
• LLP being a separate legal existence there is no risk of Partners / Designated partners of being sued for wrong doings of LLP.