LLP registration gives freedom to partners to form a partnership structure where the liability of each partner is limited to the amount they contribute into the business.
For income tax purposes, LLP is treated on a par with partnership firms. Thus, LLP is liable for payment of income tax and share of its partners in LLP is not liable to tax. Thus no dividend distribution tax is payable. India has become one of the prominent markets for start-ups, where LLP is one of the most usual business formations for startups.
Ideal for small and Medium Enterprises:
Stated as a Formal Partnership Business
Can raise Foreign Direct Investment
Time taken approx 7 days
Eligible to apply for Startup India Recognition & Tax Exemption
Minimum Compliances compare to a Company
Minimum Requirements to Incorporate an LLP:
Register your Limited Liability Partnership with at least two persons to act as the initially designated partner in the LLP. No number limit for Partners.
One Designated Partner
One Designated Partner of the LLP should be resident of India.
LLP requires the proof of the registered address not older than 2 months and the NOC from the registered address owner.
Owner can keep the capital/contribution of the LLP as per the LLP Business requirement as there is no maximum or minimum limit.