The Limited Liability Partnership (LLP) has become a popular business structure among entrepreneurs since it combines the advantages of a partnership firm and a corporation into a single entity. LLP registration stands for limited liability partnership company registration which is best provided by Nurture labs.
In 2008, the idea of a Limited Liability Partnership (LLP) was established in India. An LLP combines the qualities of a partnership firm and a corporation. In India, the LLP is governed under the Limited Liability Partnership Act of 2008. An LLP must be formed with a minimum of two partners. An LLP, on the other hand, has no upper restriction on the number of partners it can have.
There should be a minimum of two authorized partners who must be people, at least one of them must be a resident of India. The LLP agreement governs the rights and obligations of chosen partners. They are directly accountable for ensuring that the terms of the LLP Act, 2008 and the LLP agreement are followed.
- It has its own legal entity, much like a company.
- Each partner’s responsibility is limited to the amount contributed by the partner.
- The formation of an LLP is inexpensive.
- Less regulation and compliance.
- There is no requirement for a minimum capital contribution.
The minimum number of partners required to form an LLP is two. The maximum number of partners in an LLP is unlimited. There should be a minimum of two authorized partners who must be people, at least one of them must be a resident of India.
The LLP agreement governs the rights and obligations of chosen partners. They are personally responsible for ensuring that the terms of the LLP Act 2008 and the LLP agreement are followed.
If you wish to form a firm as a Limited Liability Partnership, you must register it under the Limited Liability Partnership Act of 2008.
BENEFITS OF LLP
- There is no obligation for a minimum donation.
In the case of an LLP, there is no minimum capital requirement. An LLP can be founded with as little cash as feasible. Furthermore, a partner’s contribution might include tangible, mobile, or immovable property, intangible property, or other advantages to the LLP.
- There is no restriction on the number of business owners.
An LLP needs a minimum of two partners and has no upper limit on the number of partners. This is in contrast to a private limited corporation, which is limited to no more than 200 members.
- Registration fees are reduced.
In comparison to creating a private limited or a public limited business, the cost of registering an LLP is inexpensive. However, the cost of forming an LLP vs. a Private Limited Company has recently decreased.
- There is no obligation for an audit.
Regardless of share capital, all firms, private or public, are obligated to have their books audited. However, there is no such necessity in the case of LLP. This is seen as a big compliance benefit.