Partnerships are one of the most common forms of corporate world and organization to commence business. LLP gives a window to coordinate efforts and capital with relative ease to set up a sustainable business. Since 2008, any partnership formed in India implied unlimited liability for partners.
The case of inability of the business to repay debt and your personal assets used to repay debt. After settling financial obligations. Although for the startups this risk is always inherent for protecting interests and entrepreneurship was recognized by JJ Irani Committee at 2005. The JJ Irani Committee is suggested introducing Limited Liability Partnerships in India.
In 2008, The legislature approved the Limited Liability Partnership Act. This Limited Liability Partnership Act,2008 provides both professionals CA/CS/CWA/Doctors/Architects/Engineers/Lawyers, etc. and Non-Professionals Individuals opportunity(single person owner) to run a business as a company enmeshes with the flexibility of the partnership company.
The new process is implemented with effect from 2nd October 2018. Here are the steps for the LLP registration process.