The Limited Liability Partnerships (LLPs) becomes a most preferable form of organization structure with at least two designated partners to run the entity and who get registered under the Limited Liability Partnership Act, 2008. There is no upper limit on the maximum number's members who become the part of LLP. The LLP derives the benefits of both the partnership firm and the company which gets incorporated in one organization. One should understand that the Limited Liability Partnerships (LLPs) must have at least two designated partners to run the LLP based business setup In order to have a designated partner in LLP, a resolution needs to be passed among the existing partners who are already a part of LLP, and the designated partner should possess a Designated Partner Identification Number or the (DPIN) (DPIN is a mandatory registration required for any person to qualify himself to be a part of the LLP' Designated Partner).
The LLP Agreement becomes an integral component for the Limited Liability Partnerships, as the agreement defines the mutual rights and duties that need to be executed by the LLP partners. The members completely adhere to the LLP agreement and further register themselves to the Ministry of Corporate Affairs (MCA). The entire formalities are completed within 30 days from the date of incorporation.
The LLP Incorporation Certificate is given to the entity, once the registrar approves the Memorandum of Understanding (MOA) and Articles of Association (AOA). After the successful submission of the documents, to the registrar, the LLP Incorporation Certificate is generated and delivered within the time frame of 2-12 days.
Once the entity receives the Incorporation Certificate from the Registrar, the members can apply for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN). The members can receive the PAN and TAN in around three weeks from the date of submission of application for PAN and TAN.