LLP is called Limited Liability Partnership which is introduced in the year of 2008 under the Limited Liability Partnership Act 2008. LLP is similar to the general Partnership Firm Registration but due to its legal structure there is no limited liability in the general partnership so govt of India introduce Limited Liability Partnership on 9th January 2009 and the First LLP Incorporated on 2nd April 2009 .
LLP Registration is a standard Process where 2 LLP Partners create a LLP Incorporation Entity with the limited liability and open a current bank account on the LLP Name & Start the business. Here partners have to pay the Government Fee & Professional Fee for the same.
Here are four major reasons why people tend to choose LLP as their business model:
The members of an LLP are only liable for a small amount of debt incurred by the firm. In case of bankruptcy, the personal assets of the partners will not be taken into account. On the other hand, for proprietorships and partnerships, the personal assets of directors and partners will be seized if the business goes bankrupt.
An LLP is a separate legal entity from the partners in it. It has an uninterrupted existence that follows perpetual succession, i.e., the partners might leave, but the business remains. The terms of dissolution have to be mutually agreed upon for the firm to dissolve.
Transferring the ownership of an LLP is also simple. A person can easily be inducted as designated partner in LLP and the ownership is transferred to them.
LLPs having a capital amount less than ₹25 lakhs and turnover below ₹40 lakhs per year do not require any formal audits. This makes registering as an LLP beneficial for small businesses and startups.
To be eligible for LLP company registration in india, one should meet the following criteria:
The following LLP registration requirements has to submitted while registering the firm
The partners has to provide the following documents:
Note: One partner must self-attest the first three documents. In the case of foreign nationals or NRIs, all the documents must be notarised (if currently in India or a non-commonwealth country) or apostilled (if from a commonwealth country).
For the registered office:
You can register LLP online through Finxurance. While we make LLP registration a simple 3-step process for you, the actual registration process is elaborate and is explained below for your knowledge:
All the forms that need to be submitted online require the directors’ DSC. So, the first step in the process is to get DSCs and DINs for 2 partners. We collect the necessary information from you and file it on your behalf.
Simultaneously, we check if the name you want to register under is available and reserve it for your LLP. You can check for name availability in the MCA portal.
The approval of the name will be made by the registrar only if the central government does not deem it undesirable. The name should not hold any resemblance to any of the existing partnership firms, LLPs, trademarks, or body corporates.
The next step is to draft the LLP agreement and other documents for registration. An LLP agreement is very crucial in a limited liability partnership as it determines the mutual rights and duties amongst the partners, and between the LLP and the partners. Thus, our experts take utmost care in drafting this agreement.
The partners enter into the LLP agreement upon registering the LLP by filing Form 3 online on the MCA portal. This procedure has to be done within 30 days of the date of incorporation.
Our team will file the necessary forms and documents with the registrar. Once the registrar approves all the forms and documents, you get your LLP incorporation certificate and are almost set for running your business.
As soon as you get the incorporation certificate, we will apply for the PAN, TAN, and bank account for your LLP.
The following are included in Vakilsearch’s LLP Registration in India package:
We also assist with the following to register a LLP company in india:
The key features of a Limited Liability Partnership (LLP) are:
Separate Legal Entity: LLPis a separate legal entity from its partners, which means it can own assets, borrow money, sue or be sued in its own name.
Limited Liability Protection: The liability of partners in an LLP is limited to the extent of their agreed contribution in the LLP. This means that the personal assets of the partners cannot be used to pay off the debts of the LLP.
Perpetual Succession: LLP has perpetual succession, which means that the LLP continues to exist even if the partners leave or change.
Flexible Management Structure: LLP can be managed either by the partners or by designated managers either by the partners or by designated managers. This allows for a flexible management structure.
Decide on the Partners: LLP requires a minimum of two designated partners who will be responsible for the legal compliances of the LLP.
Select a Suitable Name: Check for the availability of the desired name and ensure it complies with the LLP naming guidelines.
Obtain DSC: All designated partners must obtain a Digital Signature Certificate (DSC) for filing documents online
Obtain DIN: The designated partners must obtain a Director Identification Number (DIN) from the Ministry of Corporate Affairs (MCA)
File LLP Agreement: Draft an LLP agreement, which includes details such as partners’ contribution, profit-sharing ratio, etc., and file it with the Registrar of Companies (ROC)
Obtain PAN and TAN: Apply for PAN and TAN for the LLP.
File Form For Llp Incorporation: File Form FiLLiP (Form for incorporation of LLP) with the Registrar of Companies (ROC), along with the required documents.
Register for GST: Register the LLP for GST if the turnover is above the threshold limit.
Register For Other Taxes: Register the LLP for other taxes such as Professional Tax, Import Export Code, etc., as per business requirements.
Obtain Necessary Licenses: Obtain necessary licenses such as FSSAI, Trademark registration, etc., as per business requirements.
Maintain Compliance: Comply with the ongoing statutory requirements such as filing of annual returns, audit, etc.
PAN Card: PAN Card copy of the proposed Partners of the LLP will be required for the LLP registration process. The Department of Income Tax in India issues the PAN or Permanent Account Number which is a unique identification number
Address Proof: In addition to the PAN Card copy, the proposed Partner must also submit an address proof and residential proof. The address proof submitted must have the name of the Partner as mentioned in the PAN Card and the most current address. The document must also not be older than 2 months. The following documents are acceptable address proof for Indian Nationals.
Residential Proof: In addition to the address proof, submit a residential proof to register an LLP. The residential proof is used to validate the current address of the Partner. The following documents are acceptable residential proof:
Yes, running an LLP is significantly less expensive than running a private limited company, especially in the beginning. This is so because many compliances, like an audit, only apply to LLPs once they have a sizable turnover. In their first year, LLPs typically spend half as much on registrations and compliance tasks as a private limited company does.
Typically, only start-ups that will not be looking for venture capital funding register LLPs. This is because venture capitalists only invest in private and public limited companies.
The LLP Registration with foreign directors includes the following process.
Don’t worry!! Our expert will help you to choose a best suitable plan for you. Get in touch with our team to get all your queries resolved. Write to us at info@finxurance.com or call us @+91 9643 203 209.