LLP registration ( Limited Liability Partnership )

LLP registration (Limited Liability Partnership) service provided by TaxHills.We have made Startup incorporation services online,simple and easy for India.

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Limited Liability Partnership (LLP) Registration

Limited Liability Partnership (LLP) was introduced in India by way of the Limited Liability Partnership Act, 2008. The basic premise behind the introduction of Limited Liability Partnership (LLP) is to provide a form of business entity that is simple to maintain while providing limited liability to the owners. Since, its introduction in 2010, LLPs have been well received with over one lakhs registrations in India.

LLP is one of the easiest types of business to incorporate and manage in India. With an easy incorporation process and simple compliance formalities, LLPs are preferred by Professionals, Micro and Small businesses that are family-owned or closely-held. Since LLPs are not capable of issuing equity shares, LLP should NOT be chosen for any business that has plans for raising equity funds from Angel Investors, Venture Capitalist or Private Equity Funds.

Difference between LLP & Partnership

Authority

LLPs are registered in India under the Ministry of Corporate Affairs, Central Government. Partnership firms are registered with the Registrar of Firms, Controlled by the respective State Government in which the firm is registered.

Limited Liability Protection

The main advantage of a Limited Liability Partnership over a traditional partnership firm is that in a LLP, one partner is not responsible or liable for another partner’s misconduct or negligence. A LLP also provides limited liability protection for the owners from the debts of the LLP. However, unlike private limited company shareholder, the partners of an LLP have the right to manage the business directly.

Number of Partners: LLPs and Partnership Firms must have a minimum of two partners to be registered. Post incorporation, a LLP can have unlimited partners. In case of a Partnership Firm, if the number of partners at any time reduces below the mandatory minimum of 2 due to death, incapacitation or resignation of a Partner, the partnership firm would stand dissolved. On the other hand, in case of a LLP, if the number of Partners reduces below 2, the sole Partner can still find a new Partner to fill the position without dissolution of the LLP.

Difference between LLP & Company

Private limited company registration process and the LLP registration process are very similar with some differences in the documents and forms filed for incorporation.

Cost

The cost for the incorporation of a private limited company or an LLP is the same.

Features

Both LLP and Private Limited Company offer many of the same features. LLP and Private Limited Company are both separate legal entities and have assets and liabilities that are separate from that of the promoters. LLP and Private Limited Company are both transferable, though a Private Limited Company offers more flexibility when it comes to transferring or sharing of ownership. LLP and Private Limited Company both have perennial life, unless and otherwise closed by the promoters or competent authority.

Fundraising

A private limited company can raise funds from Angel Investors, Private Equity Funds, Venture Capitalists, banks and NBFCs. An LLP can raise funds from Partners, Banks and NBFCs.

Non-Resident Indian (NRI) & Foreign Ownership of LLP

Post changes to FDI regulations on 10th, November 2015, 100% FDI in LLP is permitted under the automatic route. In most sectors, 100% FDI in LLP is allowed through the automatic route, and there are no FDI-linked performance conditions. In addition, LLPs will also be permitted to make downstream investment in another company or LLP in sectors in which 100% FDI is allowed under the automatic route. Therefore, FDI in LLP is now permitted, and NRIs or Foreign Nationals can start or invest in an LLP.

DIN and DSC for Two Partner

Name Approval of the LLP

Certificate of Incorporation of the LLP

 PAN and TDS Number for the LLP

LLP Agreement Drafting & Filing

Bank A/c Opening Support

GST Registration

GST Return for Six Months

TDS Return for Six Months

BENEFITS OF LLP REGISTRATION

 Limited Liability Protection to Directors personal assets

Many times startups need to borrow money and take things on credit. In case of normal Partnerships, Partners personal savings and property would be at risk incase business is not able to repay its loans. In an LLP, only investment to start a business is lost, personal assets of the Partners are safe.

 Better image and credibility in Market

Limited Liability Partnership (LLP) is a popular and well known business structure in the world. Corporate Customers, Vendors and Govt. Agencies prefer to deal with LLP instead of proprietorship or normal partnerships.

 

 No Audit Requirement & Minimal Compliances

LLP is easy to manage and statutory audit is not required for Limited Liability Partnership. LLP is most ideal for small enterprises. Tax Audit is also not required for LLPs with capital less than Rs. 25 lac and turnover not exceeding Rs. 40 lac.

 Continuity of Business

LLP continues to exist beyond the existence of its Partners. This is not possible in traditional partnership firms.

MINIMUM REQUIREMENTS FOR LLP REGISTRATION

   Minimum 2 Partners

   DIN (Director Identification Number) for all the Designated Partners

   If a body corporate is a Partner, it has to nominate a natural person as its Nominee

   DSC (Digital Signature Certificate) for all the Designated Partners

   There is no concept of share capital, but each Partner has to contribute towards capital of LLP

   Address proof for office of LLP

1. What documents required to set up LLP in India?

You need to arrange very simple documents of director like photograph, Pan card and one address proof. For more details, please fill the above details 

2. Do I have to have office (commercial) space to start a LLP?

No, commercial office space is not required. You can show your own residential or rented home address as the registered office address of LLP. This office address can be changed at any time after incorporation of LLP. Once your startup is set up, stable and ready to move on to a nice corporate space you can change the registered office address by informing to the ROC office.

3. Who is Registrar of Companies (ROC)?

ROC is a Government office with whom companies get registered. Every State has one ROC office except Maharashtra and Tamilnadu where there are two ROC offices. In Maharashtra companies are registered with Mumbai & Pune ROC. In Tamilnadu companies are incorporated at Chennai and Coimbatore ROCs. In all other States like Delhi there is only one ROC office, like at Bangalore, Hyderabad and so on.

4. Do I have to physically visit ROC Office during registration of LLP?

No. TaxHills provides complete online LLP Incorporation process. All legal documentation and visits are done by us.

5. Is LLP Registration to be renewed every year?

No. Once the LLP is formed, it will be valid till it is officially closed down by the owners. No renewal or fees is required. However, every year LLPs have to file very basic returns with ROC office.

6. What is a DIN?

Director Identification Number (DIN) is a unique identification number required for a person to become Partner of LLP. DIN is issued by ROC office (Ministry of Corporate Affairs) It is similar to a PAN Card number.DIN is to be mentioned in documents while appointing a person as a Partner of an LLP.

7. What is a DSC?

A digital signature is electronic signature, which is in the form of codes. It is used for signing the electronic forms, filed with ROC for formation of LLP. Digital Signature cannot be used in physical documents.

8. What is LLP Agreement?

LLP Agreement is byelaws or rules based on which important matters like main business of the LLP, capital or meetings is decided. This is a standard legal document prepared by Company Secretaries during registration of LLP.

9. Can we change office address of LLP after Incorporation?

Yes, LLP office address can be changed anytime after incorporation.