A Limited Liability Partnership firm (LLP) is a hybrid structure between a partnership firm & a private limited company i.e. it gives the benefits of limited liability of a company and the flexibility of a partnership.
LLP is a body corporate and a legal entity separate from its partners. It will have perpetual succession. All LLP is governed under the limited liability partnership act of 2008.
Every LLP is required to have at least two Designated Partners who shall be individuals and at least one of the Designated Partners shall be a resident of India.
The advantage of LLP is that the liability of partners is limited & it does not extend to the personal assets of the partners. Also, no partner is responsible for any other partner’s misbehavior or misconduct.
LLP is quite useful for small and medium enterprises in general and for the enterprises in the services sector in particular especially professional firms i.e. CA, CS, Lawyers, etc.
LLP Registration is done through the MCA portal. Procedure For LLP Registration (1) Step 1: Obtain Digital Signature Certificate (DSC) of designated partners of the proposed LLP (2) Step 2: Apply for Designated Partner Identification Number (DPIN) (3) Step 3: Name Approval – LLP-RUN is filed for the reservation of the name (4) Step 4: Incorporation of LLP – The form used for incorporation is FiLLiP (5) Step 5: File LLP Agreement – LLP agreement must be filed in form 3 online on MCA Portal.
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