Limited Liability Partnership (LLP) : Procedure,Advantages

Why LLP? 

An LLP in India is a smart option for professionals who want to limit their liability but want to keep a corporate type identity. LLP provides A limited liability to partners, tax savings and a reduced cost of compliance as compared to Private limited company.

What is Limited liability?

LL clause segregates business and business owners, It says the liability of business owners are limited to the investment made in the business. To illustrate in an unfortunate incidence if the business incurs a loss then the owner (i.e. Partners) will be liable only till the extent of their capital contribution

The advantages of the limited Liability registration are discussed as below

• Comparatively Less cost of formation
• Lower cost of operation
• Corporate Identity with Limited liability
• Lower cost of Compliance
• Easy winding Up

Procedure

If you want to start your business with Limited Liability Partnership, then you must get it registered under the Limited liability Partnership Act, 2008. Limited Liability Partnership registration process requires

1. Application for Digital signature
2. Application for Director Identification Number (DIN)
3. Application for Name Approval
4. Drafting & Signing of Partnership Deed
5.  Filing of Required documents
6. The issue of Certificate of incorporation
7. PAN Card Application
8. TAN Card Application