LLP was started in India under the “Limited Liability Partnership Act, 2008” which states that partners are not liable for other’s misconduct. LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership.
The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP. Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct.
Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity.
Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership.
List of documents required for LLP Registration :
1. Copy of PAN Card, Aadhaar card, photo, Bank statement, Mobile No and email id of partners
2. Electricity/ Water bill/ Telephone bill as proof of Registered Office (Business Place)
3. Copy of Sale Deed/Property Deed (If owned property)/ Notarized Rent agreement
What all included in LLP Registration ?
- Two Digital Signature Certificate
2. Two DIN
3. ROC Name approval and Registration certificate ‘
4. PAN and TAN
5. LLP Agreement