Limited Liability Partnership
Limited Liability Partnership
- Application for DSC (Digital Signature Certificate).
- Apply for the DPIN (Designated Partner Identification Number)
- Application for the name availability.
- Filing of the EMOA and EAOA to register Limited Liability Partnership
- Apply for the PAN and TAN of the LLP
- GST Registration
- Application for Digital Signature Certificate.
- Apply for the DPIN
- Application for the name availability.
- Filing of the EMOA and EAOA to register Limited Liability Partnership
- Apply for the PAN and TAN of the LLP
- GST Registration
Limited Liability Partnership Registration - An Overview
Nowadays, LLP Registration is obtained by various budding entrepreneurs, Law Firms, Auditing Firms, Real Estate Agencies, Financial Advisory Services, Business Consultancies, and Small and Medium-Sized Businesses. The main reason behind this is that the concept of LLP is very prominent. Moreover, it would protect the personal assets in the event of a dispute and also provide various tax benefits.
Documents Required
Director's Document
- PAN Card or Passport (Foreign Nationals & NRIs)
- Voter’s ID/ Passport/Driver’s License
- Latest Bank Statement / Telephone Bill / Electricity or Gas Bill
- Passport-sized photograph and specimen signature
Registered Office Document
- Latest Bank Statement / Telephone Bill / Electricity or Gas Bill
- Notarized lease agreement in English
- No-Objection Certificate from the property owner
- Sale Deed/ property deed in English (if owned property)
PROCESS
- Application for DSC (Digital Signature Certificate).
- Apply for the DPIN (Designated Partner Identification Number)
- Application for the Name Availability.
- LLP Agreement
- LLP Incorporation Certificate
- Apply For PAN & TAN
POST REGISTRATION
- Open Bank Account within 30 Days
- File LLP Agreement within 30 Days in MCA
- Capital Contribution by each partner in deposits
- Auditor Appointment only if turnover exceeds 40 lacs
- Filing LLP Annual Return within 60 days with end of FY
- GST Registration for LLP
Benefits of Limited Liability Partnership Registration
A limited liability partnership or an LLP enjoys the status of a separate legal entity distinct from its members.
The term “limited liability” denotes that the liability of each and every member is limited to the extent of the amount contributed by them. On the other hand, this also means that if in case the said LLP firm incur any losses, then the personal assets of the partners will not be confiscated. Hence, the partners are made liable to the extent of their respective contributions.
Unlike the case of a Private Company, transferring ownership to others is pretty much as easy task under the concept of limited liability partnership.
A Limited Liability Partnership (LLP) has a feature of perpetual succession, which means the entry of a new member and exit of an existing member will not affect the existence of an LLP firm.
Section 3 of the Limited LLP Act, 2008, states that for obtaining LLP registration, a firm is considered as a corporate body.
Two people can easily start an LLP firm that, too, without any amount in their pocket as no minimum capital requirement has been prescribed under the act regarding the incorporation of an LLP firm.
LLP agreement is a printed stamp paper duly signed by all the partners. This agreement defines the roles, responsibilities, and duties of every partner working in the firm. Moreover, the LLP agreement also helps the firm in the process of decision-making.
One more significant advantage annexed with the concept of LLP is that there no audit requirement. However, there are two conditions in which there is an audit requirement –
- Whenever the annual turnover of the concerned business exceeds the threshold of Rs 40 lakhs, or
- If in case the capital contribution exceeds Rs 25 lakhs.
Why BizOkay India?
Frequently Asked Questions
The term LLC means a limited liability company. It is similar to a private or public limited company; however, the concept of this business structure is not applicable in India. Whereas, LLP stands for Limited Liability Partnership, it is a hybrid structure of a private limited company and a partnership firm prevalent in India.
In India, LLP is one of the most preferred business formats for budding entrepreneurs as it incorporates the benefits and privileges of both a Private Limited Company and a Partnership firm. Further, an LLP can easily be incorporated by two people who wish to carry out a lawful business to earn profit. Therefore, any entity that has the objective of not carrying out a business with a profit-earning motive cannot form an LLP, for example, a Trust, NGO, etc.
Yes, the concept of LLP is better than a Company. The reasons why an LLP is better than a Company include limited liability, more credibility, various tax advantages, fewer compliances, lower cost of incorporation, no set limit on the maximum number of partners.
Any individual or a body corporate can become a partner in a Limited Liability Partnership. However, an individual shall not qualify to become a partner if he/she has been declared as of unsound mind by the court or an undischarged insolvent. Moreover, an individual who has filed the application for adjudicating someone as an insolvent in an ongoing case is also not eligible to become a partner in an LLP.
Yes, getting an Audit done is compulsory under the LLP Act, 2008. However, it is significant to note that only those LLPs whose annual turnover exceeds the threshold of Rs. 40 lakhs or whose capital contribution exceeds the limit of Rs 25 lakhs are obligated to get their accounts, and financial statements audited.
No, it is not mandatory to appoint a Company Secretary in an LLP for LLP compliances. Also, the LLP Act, 2008 does not contain any provision regarding the appointment of a CS.
The requirements for designated partners include the appointment of at least two DP (Designated Partners) shall be compulsory for all LLPs. Designated Partners are also accountable and answerable for all the regulatory and legal compliances, in addition to their liability as partners.
Yes, as per the provisions of Section 60 to 62 of the LLP Act, 2008, LLPs are allowed to carry out mergers and amalgamation. Moreover, these provisions also provide the manner in which compromises or arrangements can take place.
Yes, as per the provisions of the LLP Act 2008, Foreign Nationals, including Foreign Companies and LLPs are allowed to incorporate a Limited Liability Partnership in India, provided at least one DP (Designated Partner) is a resident of India. However, the LLP/Partners would have to abide by all the relevant Foreign Exchange Laws/ Rules/ Guidelines/ Regulations.
A Foreign LLP can establish its place of business in India by filing Form-27 along with the particulars of incorporation of foreign LLP, details of the Designated Partners of that foreign LLP, and details of at least two authorised representatives for obeying the regulation of LLP Act, 2008.
Yes, an existing partnership firm is eligible to be converted into a Limited Liability Partnership by adhering to the provisions of Clause (58) and Schedule II of the LLP Act, 2008. Further, a partnership also needs to file Form 17 along with Form 2 for such incorporation and conversion of LLP.