LLP ( Limited Liability Partnership )

LLP is similarly to the Partnership Firm but here is one of the best advantage i.e is limited liability feature. so you can enjoy the LLP Features in partnership firm registration costing. LLP is preferred by the startups when they have partners but need limited liability in the business or have closely family member as investors.

Requirements - Its required also the 2 partners similar to private limited company.

Procedure to Register a LLP in India -

1. You have to Prepare the DSC which is already explained on above.
2. You have to Prepare the DIN Number which is also similar to process of pvt ltd.
3. After that here you have to provide the 4–6 names of the LLP which is unique and not registered previously as pvt ltd company or llp.
4. After the name approval from the govt, you have to file some Forms, your Final Certification of Incorporation has been issued.
5. Now you have to file a LLP Agreement which is similar to the partnership deed and have to file with the govt.
6. then At the end you can apply for the PAN & TAN.

Documents Required -

• Partners ID & Address Proof like PAN CARD, Voter id or aadhar card or driving license or passport + any utility bill copy like elect bill or phone bill etc.
• Registered office address proof like any utility bill copy with the NOC or rent agreement etc. its can be a residential place also.

Advantages -

• Nearly Same Cost as Partnership Firm with the Registration but you can enjoy limited liability in the business.
• Less Compliance as compare to Private Limited Company like Appointment of the Auditor.

Disadvantages 

• VC or Investor not prefer the LLP because valuation is complicated on the per share.
• Annual Compliance high cost nearly Rs 12000.

Costing -

• Its Cost generally nearby 10000 to 12000/- INR.