Find A Law Firm

LLP Registration Procedure

n LLP Registration :-

A Limited Liability Partnership, popularly known as LLP combines the advantages of both the Company and Partnership into a single form of organization. An important feature of LLP compared to that of an unlimited partnership is that one partner is not responsible or liable for another partner's misconduct or negligence. In an LLP, all partners have a form of limited liability for each individual's protection within the partnership, similar to that of the shareholders of a corporation. However, unlike corporate shareholders, the partners have the right to manage the business directly. An LLP also limits the personal liability of a partner for the errors, omissions, incompetence, or negligence of the LLP's employees or other agents.

Foreign Direct Investment in LLP :-

The Cabinet Committee on Economic Affairs has approved the proposal to amend the policy on allowing Foreign Direct Investment (FDI) in Limited Liability Partnership (LLP) firms. Highlights of the Cabinet Committee on Economic Affairs Approved Proposal

  • LLPs with FDI will be allowed, through the Government approval route, in those sectors/ activities where 100% FDI is allowed.
  • An Indian Company having FDI, be permitted to make downstream investment in LLPs, if the company and LLP is operating in sectors where 100% FDI is allowed
  • The designated partners will be responsible for compliance conditions and liable for all penalties imposed on the LLP for their contravention
  • Foreign Capital participation in the capital structure of LLPs will be allowed only by way of cash consideration, received by inward remittance, through normal banking channels or by debit to NRE/FCNR account of the person concerned, maintained with an authorised dealer/authorised bank.
  • Further, LLPs with FDI not be permitted :-
  • To operate in agricultural / plantation activity, Print Media and Real Estate Business
  • To make any kind of downstream investments
  • To avail External Commercial Borrowings
  • To accept FDI in the form of consideration in kind
  • To accept investments from Foreign Institutional Investors and Foreign Venture Capital Investors
  • Important Features of Limited Liability Partnership :-
  • LLP shall be a body corporate and a legal entity separate from its partners.
  • Mutual rights and duties of partners of an LLP inter se and those of the LLP and its partners shall be governed by an agreement between partners or between the LLP and the partners
  • The LLP will be a separate legal entity, liable to the full extent of its assets, with the liability of the partners being limited to their agreed contribution in the LLP
  • Every LLP shall have at least two partners and shall also have at least two individuals as Designated Partners, of whom at least one shall be resident in India
  • The LLP shall be under an obligation to maintain annual accounts reflecting true and fair view of its state of affairs
  • Basic Setup Requirements for Limited Liability Partnership :-
  • Minimum 2 Partners (atleast one shall be an individual resident in India)
  • Contribution by the Partners
  • LLP Agreement
  • Registered Office
  • Advantages :-
  • Separate legal entity and Easy to establish with less cost of formation
  • Flexibility without imposing detailed legal and procedural requirements
  • Perpetual existence irrespective of changes in partners
  • Internationally renowned form of business in comparison to Company
  • No requirement of minimum capital contribution
  • No restrictions as to maximum number of partners
  • LLP & its partners are distinct from each other
  • Partners are not liable for Act of other partners
  • Easy to dissolve or wind-up
  • Disadvantages :-
  • LLP cannot raise funds from Public
  • Any act of the partner without the other may bind the LLP.
  • Under some cases, liability may extend to personal assets of partners.
  • No separation of Management from owners
  • Comments
    Domoonencybox November 9, 2011
    AntonSondids January 8, 2017
    Montreal Online Pharmacy Hcpcs Code Cephalexin Buy Cialis Online Pharmacy Reviews 2013 Acquistare Levitra Online Sky Pharmacy Canada Mail Order Cheap Cialis Comprar Viagra Online Sin Receta Medica Cialis 20 Mg Opiniones Abbreviation Antibiotic With Out An Rx Where To Buy 3 10percent Cream Eurax Levitra De Bayer Precios usa kamagra supplier Viagra Legal Kaufen Schweiz Where Can I Buy Propecia Yahoo online pharmacy Brand Levitra Canada Amoxicillin And Clavulanate Potassium Without Prescription Compare Flagyl In Elk Grove Amoxil Medication viagra Viagra Telefonisch Bestellen
    RichbexOvelt March 21, 2017
    Cialis Costo cialis Ajanta Kamagra 100 Acheter Cialis Internet Est Propranolol Online Cheap Tamoxifene Arrow Cheap Meds4u Levitra Where To Buy Purchase Viagra In Canada Levitra Prezzo In Vendita Generic Amoxil Order Z Paks Isotretinoin Acne Best Cheap Cytotec Online Amoxicillin Eg Best Place To Get Viagra Levitra Tablet Online Viagra Quality Cialis 10mg Online Bestellen Zithromax Generic Trouver Du Viagra A Paris Uso Viagra Ninos Acheter Frusemide Where Can I Get Atorvastatin Without A Cialis Spedizione Contrassegno Buy Acutane Cialis Vendita On Line In Italia Comprar Cialis Levitra Viagra Buy Zoloft Cheap Prix Cytotec France Low Priced Cialis Order Zoloft In Usa How Much Is Viagra With A Prescription Kamagra Next Day Delivery Purchase Antabuse Usa Kamagra 100mg Reputable Site Eliferx Cialis Zithromax Dose Acheter Propecia Canada On Sale Discount Isotretinoin Tablets Online Visa Accepted Buy Amnesteem Foros Sobre Priligy Bentyl Internet Order Lasix Tablets Propecia 10 Mg Does Generic Viagra Really Work Buy Cialis Product 176 Advair Best Cialis Online Clobetasol Temovate Best Website Canadianpharmacyonline Prozac Online Pharmacy Acquisto Cialis Pagamento In Contrassegno Viagra Venta Madrid Buy Cheap Viagra Cialis En Madrid Viagra From India Cheap Cheap Deltasone For Sale Promethazine And Codeine For Sale Cheapeast Zentel Buy Inderal Cheap Cialis Compare Viagra
    (Please Enter the code above shown on image)