Are you interested in establishing a company with a trustworthy colleague and are seeking an adaptable yet systematic framework? Perhaps registering a Limited Liability Partnership (LLP) would suit you best. We at The Wealth Mantra are here to assist you. Unlike in the past when you had to deal with multiple legal requirements, now you can go about the business model you wish to operate freely without being encumbered with tedious processes.
A Limited Liability Partnership, or LLP, is a business structure that incorporates the advantages of having a company along with the advantages of having a partnership. It allows you and your partners to run and control the business while at the same time shielding you from personal liability for any debts incurred. Any business model ranging from a budding startup to a flourishing small enterprise to even professional services can effectively utilise an LLP as a business structure.
A minimum of two partners are required to incorporate an LLP. There is no upper limit on the number of partners.
An LLP has fewer compliance requirements, lower registration costs, and no mandatory audits unless the turnover exceeds ₹40 lakh or capital contribution exceeds ₹25 lakh.
The registration process usually takes around 10-15 working days, depending on document verification and approval by the Ministry of Corporate Affairs (MCA).
Can an LLP be converted into a private limited company?Yes, an LLP can be converted into a private limited company by following the legal process prescribed by the Companies Act, 2013.
Can a foreign national or an NRI be a partner in an LLP?Yes, foreign nationals and NRIs can be partners in an LLP, but at least one designated partner must be an Indian resident.
LLPs must file an annual return (Form 11) and a financial statement (Form 8). If turnover exceeds ₹40 lakh or contribution exceeds ₹25 lakh, a statutory audit is required.