LLP or Limited liability partnership is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership.
Limited liability partnership
The LLP or Limited liability partnership is a separate legal entity, is liable to the full extent of its assets but the 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.
Generally, professionals such as Doctors, Lawyers prefer LLP over Companies.
What is the difference between LLP and traditional partnership firms?
- Under “traditional partnership firm”, every partner is liable, jointly with all the other partners and also severally for all acts of the firm done while he is a partner.
- Under LLP structure, the liability of the partner is limited to his agreed contribution.
Whether a charitable activity can be carried out under LLP?
No. The essential requirement for setting LLP is ‘carrying on a lawful business with a view to profit’.
How many people are required to start a LLP?
A minimum of two partners will be required for formation of an LLP. There will not be any limit to the maximum number of partners.
Can a company be a partner in Limited liability partnership (LLP)?
Yes. A company can be a partner in LLP
Where is the Limited liability partnership (LLP) to be registered?
LLPs shall be registered with the Registrar of Companies (ROC)
Whether foreigners can incorporate LLP?
Yes, the LLP Act allows Foreign Nationals including Foreign Companies & LLPs to incorporate a LLP in India provided at least one designated partner is resident of India. However, the LLP/Partners would have to comply with all relevant Foreign Exchange Laws/ Rules/ Regulations/ Guidelines.
Registration required for proprietary concern depending on business :
- GST Registration
- Registration under Karnataka Shops and Establishment Act
- Profession Tax Registration
- MSME | Udyog Aadhaar Registration
- Employee Provident Fund Registration (PF Registration)
- Employee State Insurance Registration (ESI Registration)
- STPI Registration or Non-STPI Registration
- Import Export Code (IEC)
- Trade License from BBMP
Not looking for LLP registration? Click below to find other forms of entity registration :
- Partnership Firms Registration in Bangalore
- One Person Company or OPC Registration in Bangalore
- Setting up of Proprietary Concern in Bangalore
- Private Limited Company Registration
- Subsidiary Company Registration in Bangalore
- Setup Branch / Liaison Office in India