LLP Registration - Prologic Web Solutions

LLP Registration

  3. LLP Registration

LLP Registration

Limited Liability Partnership (LLP) may be a separate legal entity that has the advantage of “limited liability”. it’s governed and registered under the indebtedness Partnership Act, 2008 (notified on 31st March 2008) and therefore the rules made thereunder. Small and Medium Enterprises (SMEs) can function as LLPs. LLP is especially suitable for the service sector for professionals like Company Secretaries, Chartered Accountants, Lawyers, Cost Accountants etc.

Advantages of indebtedness Partnership

  • Limited Liability Partnership combines the advantages of both company and partnership organizations in one form.
  • In a Limited Liability Partnership, one partner isn’t responsible or responsible for the misconduct or negligence of another partner.
  • In Limited Liability Partnership, all partners have indebtedness for the security of every person within the partnership, very similar to the shareholders of an Ltd.
  • However, unlike the shareholders of the corporate, the partners have the proper to manage the business directly. An LLP also limits a partner’s liability for errors, omissions, inefficiencies, or negligence of LLP employees or other agents.

REQUIREMENTS BEFORE INCORPORATION OF LLP

PARTNER:

  • The formation of an LLP would require a minimum of two partners. there’ll be no limit to the utmost number of partners.
  • A body also can be a partner of a company LLP

DESIGNATED PARTNER:

  • Each LLP will be got to have a minimum of two DESIGNATED PARTNER.
  • The designated partner is going to be the person.
  • At least one among the nominated partner is going to be a resident of India.
  • In the case of LLPs during which all partner bodies are corporate or during which one or more partner individuals and bodies are corporate, (at least two persons who are nominees of such LLP or such body corporate shall act as designated partners).