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An LLP has both types of elements to it - ‘a corporate structure’ with ‘a partnership firm structure’. LLP’s minimum partner requirement is 2 and Audit becomes mandatory for those whose contribution exceeds 25 lakhs or annual turnover exceeds 40 lakhs. The foremost advantage of LLP over a Pvt. Ltd. Company is that there is less compliance requirement in comparison to a Company.
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An LLP is a separate legal entity. so, in case there is change in ownership or in case of death or departure of any partner it does not affect its existence until it is dissolved by the procedure established by law
Surcharge on income tax or dividend distribution tax does not apply to an LLP
In LLP, creditors are only liable for the amount of debt and in case of bankruptcy the starting business amount is lost there is no effect on personal assets of the members
compliance if annual turnover is less than 40 lakh and contribution is less than 25 lakhs
PAN CARD of Directors and Members
Passport If NRI or Foreign National
Aadhar/Driving License/Voter Id of Directors and Members (As identity Proof)
Bank Statement/Electricity or Gas Bill/Telephone or Mobile Bill (As Address Proof)
Passport Size Photograph of Directors and Members
Business Address Proof:
Electricity Bill/Water Bill (Latest)
If Rented: Rent Agreement and NOC from the Property owner
If Owned: Copy of Property Papers
Note : *In case of NRI or Foreign National the documents of Directors and Shareholders must be Notarized or Apostilled.
An LLP is required to file an annual return with the ROC and maintain proper books of account. In addition, the LLP is required to get its accounts audited if its turnover or capital contribution exceeds certain thresholds.
Yes, an LLP can convert into a private limited company by filing the necessary documents with the ROC and obtaining a fresh certificate of incorporation for the private limited company.
A LLP requires a minimum of two partners.
The Designated Partner is the partner appointed by the LLP to take care of the compliance and legal formalities of the LLP. He/She is responsible for filing the annual returns and other documents with the ROC and ensuring that the LLP is in compliance with the laws and regulations.
No, there is no limit on the number of partners in an LLP.
Yes, it is necessary for LLP to have a registered office where all the communications and notices can be sent.
Yes, a foreign national can become a partner in LLP provided they have a valid visa and comply with the FDI policy of India.