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LLP Formation Service

An LLP or a Limited Liability Partnership is relatively similar to a standard partnership except that the individual members have lower or limited liabilities to any debts that arise from the running of the business. In a nutshell, LLP offers the flexibility of partnership while operating a limited company.

LLPs are business entities that are a mixture between companies and partnership firms. As the name suggests, partners liability is limited to the extent of their stake in the LLP. Unlike private limited companies where the number of shareholders is limited to 50, an LLP can have unlimited number of partners.Besides, LLPs are not burdened with cumbersome fulfillment such as meetings and maintenance of statutory records.

LLP Formation Procedure:

Steps in LLP Formation
The first step in LLP Formation is finalizing a 'Deed of Partnership.' This is a legally binding agreement between the members as it intricates the rights and responsibilities of each party.

The deed also administrative details such as names and addresses of the members, the amount of capital that is contributed by each member in addition to individual roles and responsibilities.

The agreement also mentions the changes that need to be made in case a partner intends to leave the business at any point of time.

LLP Formation does not need a Memorandum or Articles of Association. Once formed, the LLP is required to file annual returns and annual accounts with the Companies House.

For these purposes, at least two of the partners of the LLP must be 'designated members,' who would have to meet the statutory requirements pertaining to the LLP.

The two basic requirements for LLP formation are:
  • A registered address
  • At least two members or partners
  • A lawfully binding agreement between them

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