LLP
How to choose the right Name for LLP You may know how to choose the right Name for LLP. In this article, you can follow the points to choose the right name for LLP.
Limited Liability Partnership:
Limited Liability Partnership (LLP) is an alternative form of corporate business that offers limited liability and the benefit of limited liability with a separate legal entity.
It can also be called a hybrid combination and partnership of a company.
An LLP is a new form of business operated by the Ministry of Corporate Affairs under the Limited Liability Partnership Act, 2008.
A limited liability partnership requires a minimum of two partners and restricts the maximum number of partners that can be part of the business.
The LLP has gradual succession, a common seal, can sue and sue in its own name and continue to exist, regardless of changes in the constitution of the partners.
The LLP can enter into contracts and hold property and property in its own name. Furthermore, in LLP, no partner is liable due to the independent or unauthorized actions of the other partners. It is organized and operated on an agreement basis.
Why should a Limited Liability Partnership be registered?
There have some points to registered a LLP:
- Separate legal entity:
An LLP is a separate legal entity as distinct from its affiliates, and differs in law from its clients, promoters, etc. An LLP attributes itself, the ability to incur debt and exercise a number of legal rights.
- Low and easy compliance:
LLP has less compliance than a company. This does not require holding board meetings, annual general meetings, etc., the Process to file LLP Annual compliances is easy. whichever is helps the partners to focus more on business and operations and is also cost-effective.
- Perpetual succession:
An LLP is “continuous succession”; Which means that the life of the company is not determined by the longevity of its partners. If a partner dies, or hypothetically, all LLP partners die or resign, only their shares in the company will be transferred to new people.
- Borrowing capacity:
Limited Liability Partnership can benefit from better scope for borrowing. Banking institutions and venture capital firms prefer to provide financial support to an LLP rather than partnership firms, proprietary concerns or any other form of unregistered business.
- Limited liability:
Limited liability protects the personal property of LLP’s partners and customers in the event of a loan or bankruptcy. The liability of the members in relation to the debts of the firms is limited only to their investment of capital in the organization and not on their personal assets.
How to choose the right name for LLP?
Your company name represents the ideologies, vision, and work of LLP and its founders. So it is extremely important to choose the right name for your LLP as you do not want to get stuck with a wrong or bad name that is not with your company’s product/service and vision.
The name should be relevant, attractive, and meaningful. However, there are some other factors that should be kept in mind while choosing a name for your business. Here are some important points to remember.
- Short and simple:
Your LLP name should be short and easy to remember. It should also be easy to pronounce. You should not have a name that is difficult for someone to pronounce every time.
- Name meaning something:
Your LLP name should be short and easy to remember. It should also be easy to pronounce. You should not have a name that is difficult for someone to pronounce every time.
- Type of business in your business name:
Adding the type of business to the end of the desired company name helps people locate your company’s products/services and establishes a brand image in the respective domain.
- Unique Business Name:
The proposed name must not be the same or similar to an already existing LLP or company or in any way a trademark. Similar names for already existing companies are usually rejected by the Ministry of Corporate Affairs during the company registration process.
- Invalid or derogatory names:
The company name should be as per law. It may be derogatory, immoral, prohibited, or against any customs, faith, religion, ethnicity, or country.
- Business name must have a suffix:
The business name should end with the words “Private Limited” in the case of a private limited company, “OPC Private Limited” in the case of an OPC company, and “LLP” in the case of Limited Liability Partnership.
