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Required documents


A Limited Liability Partnership (LLP) is a hybrid of a partnership firm and a company which combines the benefits of both the company and a partnership firm into a single form of organization. LLP can be incorporated with a minimum of at least two partners who can be Individuals or Body Corporate through their nominees who should be a natural person. Further there should be atleast two Designated Partners, of which at-least one must be an Indian Resident (Who has stayed in India for a period of not less than one hundred and eighty two days during the immediately preceding financial year).There is no upper limit on the maximum number of partners of LLP. There is no concept of share capital, but there has to be some sort of contribution from each partner.

Owing to flexibility in its structure and operation, it would be useful for small and medium enterprises, in general, and for the enterprises in services sector, in particular.


Any individual or any sovereign entity might start with a Limited Liability Partnership.

Required Documents

The basic documents needed are given below. Apart from this the requirements vary case to case.
  • Identity proof of all Partners
  • Address proof of all Partners
  • Stamp Paper for the agreement based on capital contribution as well as State wise Stamp Duty Act.
  • Address proof of the place of business
  • Main Object Clause for the proposed business.
  • Consent Letter of all the partners.

LLP Formation

LLP Registration
  1. LLP Deed Preparation
  2. PAN
  3. TAN


‘Designated Partner’ means a partner who is designated as such in the incorporation documents or who become a designated partner by and in accordance with the Limited Liability Partnership Agreement. A designated partner has to be an individual.
  • It is a separate legal entity with perpetual succession.
  • Partners are severally liable for any unauthorized acts done during the course of the business unlike Partnership firms, where partners are jointly and severally liable.
  • Every Limited Liability Partnership shall have either the words “Limited Liability Partnership” or “LLP” as the last words of its name.
  • A minimum of two partners will be required which shall be considered as Designated Partners.
  • There will not be any limit to the maximum number of partners.
  • Under “Partnership Firm”, every partner is jointly and severally liable for all acts done during the course of business, whereas in LLP,  the liability of the partners are only severally liable for the independent or un-authorized acts of other partners done during the COURSE OF BUSINESS.
  • Also liability of partner in partnership firm is unlimited whereas in LLP liability of the partner is limited to his agreed contribution.
  • Easy formation.
  • No detailed legal and procedural requirements.
  • No requirement of minimum capital contribution.
  • No limit in the maximum number of partners.
  • Limited liability of the partners except in case of fraud.
  • Easy to dissolve or wind-up.
  • Statutory records except Books of Accounts are not required to be maintained.
  • Body corporate can be a partner of an LLP
  • Easy to dissolve or wind-up
The following points should be considered before formulating an agreement of LLP:
  1. Clause of Capital Contribution
  2. Liability Clause
  3. Profit and Loss sharing Ratio
  4. Partners Remuneration Clause.
  5. Addition/ Resignation of Partners.
‘LLP’ has to get their books of accounts audited when the total revenue is more than 60 lacs or total capital of partners exceeds 25 lacs.
Yes. The LLP Act contains such provisions wherein option of conversion into LLP is available for entities like firm or company. From the date of conversion, all tangible and intangible property vested in the converting organization and the whole of the undertaking shall be transferred to and shall vest in the LLP without further assurance, act or deed and the firm or the company, shall stand dissolved.
No. The essential requirement for setting LLP is carrying on a profit oriented business.
The LLP shall be under an obligation to maintain annual accounts reflecting true and fair view of its state of affairs. A statement of accounts and solvency shall be filed by every LLP with the Registrar every year. The accounts of LLPs shall also be audited on fulfillment of certain criteria, subject to any class of LLPs being exempted from this requirement by the Central Government.
No, The Limited Liability Partnership has a separate act and the Indian Partnership Act, 1932 is not applicable to it.
  • LLPs are taxed like firms @ 30.90%. They are exempted from 10% surcharge. LLPs tax payment is lower than that of companies, which pay a 33.99% tax on profits.
  • The tax will be imposed only on 10% or 40% of the LLP’s income, since the firm will be allowed to pay the balance 90% or 60% to the partners as remuneration. This means, the partners will have to pay tax on the amount paid to them to avoid double taxation.
  • No requirement for payment of Dividend distribution/Corporation Tax on distribution of income/profits among partners
  • No requirement as to Minimum Alternate Tax.
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