Limited Liability Partnership

The LLP must be a separate legal entity from its partners and have its own body corporate. A Limited Liability Partnership can be formed by signing an incorporation document and filing it with the Registrar if two or more people are associated for the purpose of carrying on a lawful business for profit. The LLP will continue to exist indefinitely.

The mutual rights and obligations of LLP partners, as well as those of the LLP and its partners, are controlled by an agreement between partners or by the LLP and its partners, pursuant to the LLP Act 2008. The statute gives them the freedom to create the agreement they choose.

The LLP will be a separate legal entity, liable to the full extent of its assets, with the partners’ liability limited to their agreed contribution to the LLP, which may be material or intangible, or both tangible and intangible. No partner would be held liable for the independent or unauthorized activities or misconduct of other partners. The LLP’s and partners’ responsibilities for all or any of the LLP’s debts or other liabilities are unlimited if they are proven to have acted with the intent to cheat creditors or for any dishonest purpose.

Every LLP must have at least two partners, as well as at least two Designated Partners, at least one of whom must be a resident of India. Designated Partners’ responsibilities and obligations are governed by the law.

The LLP will be required to keep annual accounts that show a true and fair picture of its financial situation. Every LLP must file an annual statement of accounts and solvency with the Registrar. The accounts of LLPs must also be audited unless the Central Government exempts any class of LLPs from this requirement.

Documents Required for Limited Liability Partnership

ID proof of all the Partners – Voter ID or DL or Passport.

One Partnership Deed between the partners which shows the share of each partner.

One electricity bill or water bill for office premises.

NOC from the landlord of the premises.

Name of the company and nature of business.