Limited Liability Partnership Registration
In India, a Limited Liability Partnership (LLP) is a legal form of business entity that combines the features of a partnership and the benefits of limited liability. It was introduced in India through the Limited Liability Partnership Act, 2008. Here are some key characteristics of LLPs in India
Documents Requires For Company Registration
- PAN Card
- Aadhar
- Latest Bank Statement/ Utility Bill
- Photo
- Address Proof (For Address Proof: Bank Statement, Electricity Bill, Telephone Bill, Mobile Bill.(Anyone, not older than 2 months).
6. Proof Of The LLP Registered Office Address
1. Latest electricity bill OR any other utility bill in the name of the owner
2. Rent agreement b/w owner & company promoter OR NOC from Owner (if owner is the company’s promoter)
Requirement In Case of Foreign Nationals/ NRIs- Notarised/ Apostilled document required as under
1. Passport for Foreign nationals and NRIs. As ID Proof
2. Evidence of address Proof- Driver’s licence, bank statement, residence card, or any other Government-issued identity proof with an address.
Packages
- Name Approval Certificate
- 2 Digital Signature in Two Years Validity
- LLP Incorporation Certificate
- Drafting and filing of LLP Agreement
- 2 DIN, PAN & TAN
- Current Bank Account*
- Name Approval Certificate
- 2 Digital Signature in Two Years Validity
- LLP Incorporation Certificate
- Drafting and filing of LLP Agreement;
- 2 DIN, PAN & TAN
- Current Bank Account
- Process GST Registration
- Name Approval Certificate
- 2 Digital Signature in Two Years Validity
- LLP Incorporation Certificate
- Drafting and filing of LLP Agreement
- 2 DIN, PAN & TAN
- Current Bank Account*
- Process GST Registration
- GST Compliance Services for one financial year validity
What is Limited Liability Partnership?
In India, a Limited Liability Partnership (LLP) is a legal form of business entity that combines the features of a partnership and the benefits of limited liability. It was introduced in India through the Limited Liability Partnership Act, 2008. Here are some key characteristics of LLPs in India
1. Limited Liability
Similar to LLPs in other jurisdictions, an LLP in India offers limited liability protection to its partners. This means that the personal assets of the partners are protected, and their liability is limited to their contribution to the LLP.
2. Separate Legal Entity
An LLP in India is considered a separate legal entity distinct from its partners. It can own property, enter into contracts, and sue or be sued in its own name.
3. Flexibility in Management
LLPs in India provide flexibility in management structure. Partners can choose to have designated partners who are responsible for the day-to-day operations of the LLP, while other partners may have a more passive role.
4. Perpetual Succession
LLPs in India have perpetual succession, meaning the LLP continues to exist irrespective of changes in its partners. The death, retirement, or insolvency of a partner does not affect the continuity of the LLP.
5. Less Regulatory Compliance
LLPs in India generally have fewer regulatory compliance requirements compared to companies. For example, they are not required to hold annual general meetings or conduct audits unless specified by the LLP agreement or regulations.
6. Taxation
LLPs in India are taxed as a partnership, with profits taxed at the partner level rather than at the entity level. This often results in tax savings for partners, as they can offset business losses against personal income.
7. Professional Services
LLPs are commonly used by professionals such as lawyers, accountants, architects, and consultants in India due to the limited liability protection they offer.
8. Minimum Capital Requirement
There is no minimum capital requirement for forming an LLP in India. Partners can contribute capital based on their agreement, and the LLP agreement governs the distribution of profits and losses among partners.
How to Register for LLP Registration?
Registering for Limited Liability Partnership (LLP) registration in India involves several steps and adherence to the guidelines provided by the Ministry of Corporate Affairs (MCA). Here’s a step-by-step guide on how to register for LLP registration in India
1. Obtain Digital Signature Certificate (DSC)
All designated partners of the LLP must obtain Digital Signature Certificates (DSC). This is required for digitally signing the incorporation documents.
3. Reservation of Name
Choose a unique name for the LLP and check its availability using the LLP-RUN (Reserve Unique Name) service on the MCA portal. Once approved, the name will be reserved for 20 days
5. Filing of Incorporation Form
File Form FiLLiP (Form for incorporation of Limited Liability Partnership) with the Ministry of Corporate Affairs. This form includes details such as the name of the LLP, its registered office address, details of designated partners, and the LLP agreement.
7. Verification and Approval
The Registrar of Companies (RoC) will verify the documents submitted. If everything is in order, the LLP will be registered, and a Certificate of Incorporation will be issued.
9. Bank Account Opening
Open a bank account in the name of the LLP using the Certificate of Incorporation, PAN, and other required documents.
2. Obtain Designated Partner Identification Number (DPIN)
Every designated partner needs to obtain a Designated Partner Identification Number (DPIN). This can be obtained by filing Form DIR-3 with the Ministry of Corporate Affairs.
4. Draft LLP Agreement
Draft the LLP Agreement, which outlines the rights, duties, and responsibilities of the partners and the operational aspects of the LLP.
6. Payment of Fees
Pay the prescribed fees for the LLP registration process. The fee amount depends on the capital contribution of the LLP.
8. PAN and TAN Application
Apply for the LLP’s Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) with the respective authorities.
10. Post-Incorporation Compliance
Fulfill post-incorporation compliance requirements, including obtaining a certificate from a professional (Company Secretary, Chartered Accountant, Cost Accountant, or Advocate) and filing annual returns.
It’s advisable to seek professional assistance or consult with a chartered accountant or company secretary to ensure compliance with all legal requirements. The LLP registration process is typically completed online through the MCA portal, and proper documentation and adherence to timelines are crucial for a smooth registration process.
It is advisable to seek professional assistance or consult with our dedicated team of professionals and advisors like chartered accountant or company secretary to ensure compliance with all legal requirements. The registration process can be completed online through the MCA portal, and proper documentation and adherence to timelines are crucial for a smooth registration process.
Frequently Asked Questions
What is LLP?
The LLP stands for Limited Liability Partnership it is a better version of a general partnership firm. It is governed by limited liability partnership act 2008
How LLP is better than general partnership firm?
LLP has all features of partnership firm with an additional benefit of limited liability of partners and it also immunes the business name from being copied by others
What are the minimum required partners to start LLP?
Minimum 2 Partners are required to start an LLP. There is no limit on the maximum number of partners in an LLP.
How much investment is required to start a LLP?
Unlike a private ltd company no minimum capital required to start an LLP
What is the legal proof of LLP firm?
A legal proof of LLP is certificate of incorporation as well as LLP agreement
What is an LLP agreement?
LLP agreement is similar to a partnership deed where all the rights, liabilities and share of profit and loss are mentioned/drafted
Can I name my LLP whatever I want?
Name allotment as desired by you is wholly a discretionary power of ROC. Normally ROC allot your desired business name if it is unique and not resembling with any existing company/LLP
Is DSC required for LLP firm?
Yes, DSC of an authorized director is required while incorporating an LLP.
