Limited Liability Partnership
Limited liability partnership is a combination of both partnership and corporation. It has the feature of both these forms. As the name suggests partners have limited liability in the company which means that personal assets of the partners are not used for paying off the debts of the company. Nowadays it has become very popular form of business as many entrepreneurs are opting this. There are a number of partners in the firm and hence they are not liable or responsible for others misconduct. Every one is liable for their own acts. All limited liability partnership is governed under the limited liability partnership act of 2008. However in India LLP was introduced in April 2009.
It is a separate legal entity distinct from its owners. It can enter into a contract and acquire property in its name. LLP form is not just prevailing in India.
Advantages of registering a business as an LLP:
- Limited Liability of Partners
- Operational Flexibility
- Separate Legal Existence
- Minimum Compliance Requirement compared to Private Limited
Documents required for registration of an LLP:
- PAN Card (PAN Card of all partners)
- Partners Address Proof (Aadhar Card/ Voter ID/ Passport/ Driving License of all partners)
- Photograph Latest (Passport size photograph of all partners)
- Business Address Proof (Latest Electricity Bill/ Telephone Bill of the registered office address)
- NOC from owners
- Rent Agreement