Limited Liability Partnership is a corporate element enrolled under Limited Liability Partnership Act, 2008. It is a type of organization that appreciates limited obligation. It is a cross breed type of an organization that includes the highlights of a company. Compliances for a company are relevant to LLP.
Limited Liability Partnership (LLP) was formed around January 2009, making it a favorite among new businesses and expert administrations. Limited Liability Partnership Registration, administered by LLP Act 2008 joins the advantages of an organization with that of a limited risk company. LLP was introduced to help proprietors by giving them limited risk. The most vital reason for registering as LLP is the limited liability. The members of the firm are only liable for a small amount of debt incurred by it. This is entirely different from proprietorship and partnership where the personal assets of directors and partners are not protected if the business becomes bankrupt. LLPs having a capital amount less than 25 lakhs and turnover below 40 lakhs per year do not require any formal audits. It makes registering as LLP beneficial for small businesses and startups.
Steps to register LLP in India
- STEP 1: OBTAINING DSC AND DIN
- STEP 2: APPLICATION FOR NAME APPROVAL
- STEP 3: LLP AGREEMENT
- STEP 4: LLP INCORPORATION CERTIFICATE
- STEP 5: APPLY FOR PAN & TAN & BANK ACCOUNT