Is it cheaper to run an LLP than a private limited company? Yes, its cheaper to run an LLP than a private limited company, especially in early start-up days. That’s because, compliances such as audit apply to LLP’s only after the turnover becomes sizeable. Also, the compliance and registration works are much less, when compared to private limited companies. What kind of startups normally register LLP’s? Normally, startups that don’t look for Venture Capital funding, register LLP’s. It’s because venture capitalists invest only in private and public limited companies. What is the minimum number of partners required to start an LLP? As per the Act 2008, minimum of two designated partners are required to start an LLP. The designated partners have to fulfill all the requirements of starting and running an LLP. What is an LLP agreement? An agreement made between the partners and the LLP, regarding the relationship between the individual partners in the LLP. The agreement usually consists of management policies, the inclusion of new partners, policy-making strategies, and so on. What are the rules of starting an LLP? Any group of persons who are interested in investing money in a business can start an LLP. A person or an investor becomes a partner of the LLP agreement, as per the Act of 2008. Can an NRI start an LLP business in India? Yes, non-resident Indians and foreign nationals, willing to enter into an LLP partnership, can do so, provided, all the mandatory documents are submitted, after getting it notarized by the concerned authorities. But, at least one of the partners in the designated partners in the LLP should be an Indian national. What is the eligibility of designated partner/partners in LLP? Any individual, company or LLP can become a partner. But, only an individual can become a ‘designated partner’ in an LLP.