A single member can form an LLP?
If you wish to form a Limited Liability Partnership, you must do so under the Limited Liability Partnership Act of 2008. According to the act, there should be a minimum of two partners in an LLP. In an LLP, anyone can become a partner. In addition, there should be a minimum of two designated partners, one of whom should be a resident of India.
LLP agreements spell out the rights and duties of designated partners. In addition, they are personally responsible for following the terms of the LLP Act 2008 and the LLP agreement.
We, therefore, conclude that no less than two partners are necessary to form a limited liability partnership. As a result, sole proprietors of businesses cannot register an LLP in India. You must find another trustworthy person to act as a partner in your entrepreneurial venture in order to incorporate your business through the LLP structure.
In India, LLPs are governed by the Limited Liability Partnership Act, 2008.
An LLP may be formed by any individual or body corporate. If a person is found to be of unsound mind by a court and the finding is currently in force, he will not be permitted to become a partner in an LLP; if an undischarged insolvent, or if an application to have an insolvency adjudication is pending, he will not be permitted to become a partner in an LLP.
The best option for a solo entrepreneur
Solo founders can use the OPC structure, which stands for One Person Company. One of the major benefits of adopting an OPC model for your business is being able to be the company’s director and shareholder at the same time.
With an OPC, entrepreneurs benefit from limited liability and the legal protection of a corporation without sacrificing ownership. Compared to private limited companies, an OPC has been given some generous leeway when it comes to compliance.
Let Vakilsearch help!
A solo entrepreneur of a business venture can rest easy and dedicate all their efforts to growing their business without having to worry about the hassle of legitimizing it. ‘How is that possible?’, you ask; by handing over all their troubles to Vakilsearch.
- You will need to file a name approval application for your one-person business with our experts. We will even prepare the AoA (Article of Association) and the MoA (Memorandum of Association)
- Following this, we will submit the incorporation documents to the MCA on your behalf. At the same time, assign your PAN and TAN.
- In addition, you will receive regular updates on the status of your OPC registration as well as post-incorporation compliance support.