Limited Liability Partnership (LLP) Formation

There is no minimum capital requirement for LLP. It can be registered with least possible amount of capital.

LLP is having flexibility in operations and it carries following additional benefit over Pvt. Ltd. company :

• Low incorporation cost

• Significantly low compliances

• No mandatory audit in case Turnover less than Rs. 40 Lakh & Capital less than Rs. 25 Lakh

Any person whether individual, company or LLP, can become a partner. However, only an individual can become a "Designated partner" in LLP.

Yes, conversion of LLP into Pvt. Ltd. is possible provided following basic conditions need to be satisfied in order to proceed with conversion procedure -

• LLP must have at least 7 partners and approval from all the partners is required for conversion

• Advertisement in local and a national newspaper is to be done

• No Objection Certificate (NOC) is required from the ROC where such LLP is registered

LLP agreement is an important document which governs the mutual rights and duties amongst the partners and also between the LLP and its partners.

Any individual who intends to become partner must hold the Designated Partner Identification Number, no separate application is required to have the DPIN. It can be obtained with the forms filled at the time of incorporation. DPIN once allotted to you can be used for the lifetime. No other specific qualification is required.