FAQs on Limited Liability Partnership (LLP) Formation
1.What is a Limited Liability Partnership (LLP)?
A Limited Liability Partnership (LLP) is a business structure that combines the flexibility of a partnership with the benefits of limited liability, protecting partners from personal liability for the business's debts or obligations.
2.What are the key advantages of forming an LLP?
An LLP offers the flexibility of a partnership with limited liability protection, separate legal entity status, minimal compliance requirements, and no restrictions on the number of partners.
3.Who can become a partner in an LLP?
Any individual or corporate body can become a partner in an LLP. However, at least one designated partner must be an Indian resident.
4. What is the minimum number of partners required to form an LLP?
A minimum of two partners is required to form an LLP, with at least one designated partner being a resident of India.
5. What are the steps involved in forming an LLP?
The LLP formation process includes obtaining a Digital Signature Certificate (DSC), applying for a Director Identification Number (DIN), reserving the LLP name, filing the incorporation form with the Registrar of Companies (ROC), and executing the LLP Agreement.
6.How long does it take to register an LLP?
The LLP registration process typically takes 10-15 business days, depending on the timely submission of required documents and approvals from the authorities.
7. What documents are required for LLP registration?
Key documents include PAN cards, identity proof, address proof of partners, registered office address proof, and the LLP Agreement.
8.Is there any minimum capital requirement for forming an LLP?
No, there is no minimum capital requirement for forming an LLP. The capital contribution can be decided mutually by the partners.
9.Can an existing partnership firm be converted into an LLP?
Yes, an existing partnership firm can be converted into an LLP by following the prescribed procedure under the Companies Act, 2013.
10.What are the annual compliance requirements for an LLP?
LLPs must file annual returns, financial statements, and income tax returns with the Registrar of Companies (ROC) and other relevant authorities.