Why Register as LLP?

Limited Liability Partnership offer limited liability protection for an association of persons doing business. LLP is ideal for small businesses.

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Requirement for LLP Registration

Latest Update: There is no need to have Minimum Capital nowadays.

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Quick LLP Registration

It is easy to become a Partner or leave the LLP or otherwise it is easier to transfer the ownership in accordance with the terms of the LLP Agreement.

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LLP Registration Fees

  • Register LLP @ the All Inclusive Cost of `8,300/-
  • Register Your Startup Company as LLP in Less Than 20 days.

Know How to Register LLP?

Kindly fill-up the form below and we will get back to you shortly to initiate the process.

LLP Registration Form:

Number of Directors (required) -

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Documents Required For LLP Registration:

  1. Colour PP Photograph
  2. PAN Card – Self Attested
  3. Address Proof – Any One Self Attested
    (Driving License / Passport / Aadhar Card / Voter ID Card / Latest Electricity Bill / Latest Telephone Bill / Latest Mobile bill)

LLP Registration Package Includes:

  • 2-Digital Signature Certificate (DSC)
    2-Director Identification Number (DIN)
  • Company Name Approval by Ministry
  • LLP Agreement
  • Registration Certificate
  • Permanent Account Number (PAN)
  • Tax Account Number (TAN)

Minimum Requirements for LLP Registration

  • Minimum 2 Partners (Individual or body corporate)
  • Minimum 2 Designated Partners who are individuals and at least one of them should be resident in India.
  • No Mimimum Capital Required

Procedures for Registering a Limited Liability Partnership Company:

Process of Limited Liability Partnership (LLP) Registration:

Registration Process of LLP:-

Obtain Digital Signature for the partners:

Director Identificaton Number: Every Designated Partner is required to obtain a DIN from the Central Government. If a person already has a DIN, the same can be used for forming LLP.

Apply for the DIN ( Director Identification Number) Number which is necessary to becoming a partner in the llp:

The DIN can be applied online at (http://www.mca.gov.in/MCA21/Din.html).
Digital Signature Certificate: All the forms like eForm 1, eForm 2, eForm 3 etc which are required for the purpose of incorporating the LLP are filed electronically through the medium of Internet, it is not possible to sign them manually. Therefore, for the purpose of signing these forms, the Designated Partner of the proposed LLP needs to obtain a Digital Signature Certificate (DSC) from government recognized DSA’s.The signatures shall also be required for signing and filing of all relevant forms and documents to be filed, annually or event based after incorporation of the LLP, asking for approvals or as intimation.

Apply for the Name Approval for the LLP Registration:

The next step is to decide the name for the proposed LLP to be incorporated, anyone intending to incorporate an LLP has to evaluate his proposed name under the prescribed parameters and make an application in Form 1of Rule 18(5) of the Limited Liability Partnership Act 2008, for reservation of the desired name. The name of the limited liability partnership shall not be similar or identical with Company or LLP already registered in India and it should not contains words prohibited under the ‘Emblems and Names (Prevention of improper use) Act, 1950’or which are also not ‘Undesirable’ in the opinion of Central Government or which satisfies the conditions prescribed under rule 18(2). For more information check Name Availability Guidelines.

File LLP Agreements and Open a Current Bank Account:

The next pertinent step is drafting of Limited Liability Partnership Agreement governing the mutual rights and duties among the partners and among the LLP and its partners.

The basic contents of Agreement are:

  • Name of LLP
  • Name of Partners & Designated Partners
  • Form of contribution
  • Profit Sharing ratio
  • Rights & Duties of Partners
  • Proposed Business
  • Rules for governing the LLP

In case no agreement is entered into, the rights & duties as prescribed under Schedule I to the LLP Act shall be applicable.
It is not necessary to have the LLP Agreement signed at the time of incorporation, as the details of the same needs to field in eform 3 within 30 days of incorporation but in order to avoid any dispute between the partners as to the terms & conditions of the agreement after the formation of LLP, it is always beneficial to have the LLP Agreement drafted and executed before the incorporation of the LLP.

Issued the Certificate of Incorporation which is the proof for the registration:

After the Registrar is satisfied that all the formalities with respect to the incorporation has been complied, he will issue a Certificate of Incorporation as to formation of the LLP within maximum of 14 days from date of filing of documents. The Certificate of Incorporation issued shall be the conclusive evidence of formation of the LLP.

Advantages of Limited Liability Partnership Registration

  • Renowned and accepted form of business worldwide in comparison to Company.
  • Low cost of Formation.
  • Easy to establish.
  • Easy to manage & run.
  • No requirement of any minimum capital contribution.
  • No restrictions as to maximum number of partners.
  • LLP & its partners are distinct from each other.
  • Partners are not liable for Act of partners.
  • Less Compliance level.
  • No exposure to personal assets of the partners except in case of fraud.
  • Less requirement as to maintenance of statutory records.
  • Less Government Intervention.
  • Easy to dissolve or wind-up.
  • Professionals can form Multi-disciplinary Professional LLP, which was not allowed earlier.
  • Audit requirement only in case of contributions exceeding `25 lacs or turnover exceeding `40 lacs..`

Limited Liability Partnership  

llp registration

Why Register as Limited Liability Partnership

Limited Liability Partnership Registration
Limited Liability Partnership, popularly known as LLP combines the advantages of both the Company and Partnership into a single form of organization.
Renowned form of business
Though the concept of Limited Liability Partnership has been recently introduced in India but it is very known concept in other countries of the world especially in service sector.
Easy to Form
It is very easy to form Limited Liability Partnership, as the process is very simple as compared to Companies and does not involve much formality. Moreover, in terms of cost the minimum fees of incorporation is as low as `800 and maximum is `5600.
Body Corporate
Just like a Company, Limited Liability Partnership is also body corporate, which means it has its own existence as compared to partnership. Limited Liability Partnership and its Partners are distinct entity in the eyes of law. LLP will know by its own name and not the name of its partners.
Liability
A Limited Liability Partnership exists as a separate legal entity from your personal life. Both LLP and person, who own it, are separate entities and both functions separately. Liability for repayment of debts and lawsuits incurred by the LLP lies on it and not the owner. Any business with potential for lawsuits should consider incorporation; it will offer an added layer of protection.
Flexible to Manage
Limited Liability Partnership Act 2008 gives LLP the at most freedom to manage its own affairs. Partner can decide the way they want to run and manage the Limited Liability Partnership, in form of LLP Agreement. The Limited Liability Partnership Act does not regulated the LLP to large extent rather than allows partners the liberty to manage it as per their will and fancies.
Easy Transferable Ownership
It is easy to become a Partner or leave the LLP or otherwise it is easier to transfer the ownership in accordance with the terms of the LLP Agreement.
Separate Property
A Limited Liability Partnership as legal entity is capable of owning its funds and other properties. The LLP is the real person in which all the property is vested and by which it is controlled, managed and disposed off. The property of Limited Liability Partnership is not the property of its partners. Therefore partners cannot make any claim on the property in case of any dispute among themselves.
Taxation
Another main benefit of incorporation is the taxation of a LLP. Limited Liability Partnerships are taxed at a lower rate as compared to Company. Moreover, LLP are also not subject to Dividend Distribution Tax as compared to company, so there will not be any tax while you distribute profit to your partners.
Raising Money
Financing a small business like sole proprietorship or partnership can be difficult at times. A Limited Liability Partnership being a regulated entity like company can attract finance from PE Investors, financial institutions etc.
No Mandatory Audit Requirement
Under Limited Liability Partnership, only in case of business, where the annual turnover/contribution exceeds `40 Lacs/ `25 Lacs are required to get their account audited annually by a chartered accountant. This provides great relief to small businessmen.

 

Partners are not agent of other Partners
In LLP, Partners unlike partnership are not agents of the partners and therefore they are not liable for the individual act of other partners in Limited Liability Partnership, which protects the interest of individual partners.

 

Compliances
As compared to a private company, the number of compliances are on lesser side in case of Limited Liability Partnership.

 

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