Often it has been seen over the time that due to the illicit activities of one partner in the partnership firm, the damage was to everyone associated. This process was first introduced in India by means of Limited Liability Partnership Act, 2008. This type of business has much opted because it is quite easy to maintain and run and also giving the limited liability to the owners. Since the inception of this type of partnership, it saw the great amount of registration which was quite astonishing as well.
The best advantage of this is that a particular partner is not responsible for the actions, negligence, and misconduct of another partner. All the partners associated in the LLP enjoy the LLP for the protection of each individual which is quite similar to that of the shareholders of the private limited company. Also, the partners associated with LLP have the right as to manage the company businesses which cannot be done by the shareholder of the private limited company.
This type of business is quite easy to manage in India, and that is why plenty of small and micro business along with professionals tends to prefer the LLP. Also, if the business is closely held or family-owned, then this type of business is the best for them. The approximate time required for the complete procedure of the Limited Liability Partnership registration is fifteen to twenty business days as it depends on the submission of the documents of the client and the government processing time. Once all the llp registration requirements are met then only it is issued.
There is the mandatory need of certain documents required for LLP registration. They are
The address and identity proof of all the partners are required so that the LLP can be incorporated. If any of the partners is not the citizen of India, then the passport is mandatory, and for the Indian nationals, PAN card is mandatory.
The submitted documents have to be valid, or issues can turn up. Moreover, the documents for the residence proof have to be less than 2 months old.
There should be a registered office in India, and for its submission, the recent copy of property tax receipt or the electricity bill is valid. If it is rented, then the documents of the rental agreement or consent letter must be submitted.
There are several benefits too associated with the registering a Limited Liability Partnership such as separate legal entity, perpetual succession, no requirement of Audit, easy transferability of ownership, can own property under its name, etc.
It is advised that to ensure smooth and fast registration of the company, the name should be picked which is unique and all the required documents should be ready at the time of submission. That will ensure that the process will be quite simple. There are several online portals which are in this field, and they take over all the process so that the client does not have to face any issues and there are even several packages available as well.