What Is a Limited Liability Partnership? 



The limited liability partnership has the combined benefits of both a partnership firm and agency into a single type of organization. Limited liability partnership (LLP) has become a popular organizational structure among entrepreneurs. 



While being simpler to maintain compliance, an LLP offers many of the advantages of a Private Limited Company. Keep reading to learn more about an LLP and LLP company registration 



Limited liability partnership



A limited liability partnership has its own legal identity and corporate body that is distinct from its partners. It can enjoy the status of a legal entity after its incorporation. Once registered, an LLP can hold, buy, and sell any form of asset. Both suing and being sued in its name are possible with LLP.



Limited liability will apply to each partner even though an LLC will recognize them as separate legal entities. As a result, the personal assets of the partners cannot be used to settle any outstanding debts owed by the LLP firm.



Features of LLP



• Like companies, it has a unique legal entity.

• There are fewer rules and regulations.

• Each partner's liability is limited to the contribution made by the partner.

• There is no mandated minimum capital contribution.



Keep in mind that there should be minimum of 2 partners in an LLP. For a maximum number of partners, there is no upper limit. For all registration, one of the partners must be an Indian citizen, and as mentioned above there must be a minimum of two chosen partners.



LLP registration process



Step 1: Obtain a digital signature certificate 



You must apply for the selected partner's digital signatures for the proposed LLP before starting the registration process. The designated partner must therefore obtain their digital signature certificates from certifying organizations that are recognized by the government.



Step 2: Generating the Director Identification Number 



The DIR-3 program can be used to generate a Director Identification Number (DIN) for each partner. Aadhaar and a PAN card must be submitted with this form. It also requires the signature of the LLP business's company secretary or the managing director, director, CEO, or chief financial officer.









Step 3: Name Approval



LLP-RUN (Limited Liability Partnership-Reserve Unique Name) application is submitted to reserve the proposed LLP's name. This application is processed by the Central Registration Center as a Non-STP.



Step 4: Incorporation of LLP



The LLP incorporation process is done by submitting the FiLLiP or the Form for incorporation of Limited Liability Partnership.



The FiLLiP form must be submitted to the registrar whose jurisdiction includes the city where the registered office of the LLP firm is located.



Step 5: Limited Liability Partnership Agreement 



The Limited Liability Partnership Agreement must also be submitted. The agreement had to be filled in a stamp paper. The Limited Liability Partnership Agreement must be submitted within 30 days of the LLP company's incorporation.



Professionals, Medium-sized businesses, and small businesses prefer LLP registration in Mumbai due to fewer compliance requirements and an easy incorporation process. LLP is a better option from a tax perspective, which is also less expensive to incorporate and maintain than a Shah & Doshi Private Limited Company.