LLP (Limited Liability Partnership) | Registration Services
Through limited liability act 2008, limited liability partnership entities were introduced. The basic premise behind LLP entities was to offer easy incorporation process and limited liability to owners. LLP company registration offers the benefit of both private limited and partnership entities. The limited liability is the only difference between normal partnership and LLP company. It is the most preferred type of company for small businesses who are not willing to do huge funding.
LLP can be registered with a minimum of two partners
- One partner is not responsible for other partners misconduct
- Each partner has his own liability towards the business
Advantages of LLP registration | Importance of LLP
The biggest advantage of LLP company is that it has the limited liability protection. The partners have no personal liabilities in case of any misconduct and loss in company.
No annual compliances, unlike pvt ltd and one person company there are no annual tax compliances for LLPs unless the annual turnover of the company exceeds 25 lakh and 40 lakh.
Limited liability partnership is a registered separate legal entity under The Companies Act 2013 by the government of India. An LLP is a legal entity and juristic person for the law.
The incorporation process of LLP company is very easy. And the ownership of LLP company can easily be transferred by transferring the shares of the company
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Procedure of LLP company registration-:
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Step 1: Obtain Digital Signature certificate
The first step in the process of LLP registration is to obtain DSC because all the documents need to be submitted in digital format with partners signature. The digital signature should be used by the file the registration, ROC compliance forms and the tax returns of the company. -
Step 2: Director Identification Number
DIN is an 8 digit unique Director identification number allotted by the Central Government to any person intending to be a Director or an existing director of a company. DIN has a lifetime validity. It mandatory to file DIN number by all the directors. -
Step 3: Reserve Name
Minimum one and a maximum of 6 name choices must be submitted to MCA. The name should be unique and not in prior use. Approval for the name can be obtained within 5-7 working days. -
Step 4: LLP agreement
In LLP company this agreement is very essential as it determines the mutual rights and duties among the partners and also between the LLP and the partners. This procedure of the LLP agreement has to be done within 30 days of the date of incorporation. -
Step 5: LLP certification of Incorporation
Submit the application and get the LLP certification. You have to submit all the documents to the registrar and the time frame is between 10-12 days. Once you are done with this you're ready to go. - Step 6: Apply for TAN, PAN & Bank accountAs soon as you get the incorporation certificate, you need to apply for the companies PAN, TAN & NSDL. It takes around 3 weeks to get done and the cost of this procedure is less than Rs.200.
Documents required for LLP registration
- PAN Card of all the partners
- ID Proof
- Scanned passport size photo of the director
- Bank statement of all partners
- Rent Agreement/ NOC if property is one rent
- Registered office proof
Frequently Asked Questions
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What is an LLP (Limited Liability Partnership)?
An LLP (Limited Liability Partnership) is the one where the liability of the partners is limited i.e. the partners’ personal assets cannot be attached to pay off the firm’s liabilities.
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What are the steps to incorporate an LLP (Limited Liability Partnership)?
Following are the steps to incorporate an LLP (Limited Liability Partnership):
- Name reservation
- Incorporate the LLP by duly filing the E-form 2, it contains the details of LLP proposed to be incorporated.
- LLP agreement is required to be filed in E-form 3 within 30 days of incorporation of LLP.
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Can an existing partnership be converted into an LLP (Limited Liability Partnership)?
Yes! An existing partnership can be converted into an LLP by complying with the provisions of clause 58 and Schedule 2 of the LLP Act. Form 17 needs to be filed along with form 2 for such conversion and incorporation of LLP.
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What are the documents required for the ISI mark registration?
Copy of product test copy, business registration proof, PAN card and the list of the manufacturing goods.
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Can a listed company be converted into an LLP ((Limited Liability Partnership)?
Yes! Any existing private company or existing unlisted public company can be converted into an LLP by complying with the provisions of clause 58 and schedule 3 and 4 of the LLP Act. Form 18 needs to be filed with the registrar along with Form 2 for such conversion.
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How to reserve the name for the LLP (Limited Liability Partnership)?
In order to reserve the name for your LLP. The LLP Form No. 1 needs to be filed on to the LLP portal along with the fee prescribed and attaching the DSC (Digital signature Certificate) of the designated partners proposing to incorporate an LLP.
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Is it mandatory to file and get registered the partnership agreement under LLP?
Yes, it is mandatory to execute and file LLP agreement in view of Section 2(0), 22 and 23 of the Act.
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Can a foreigner become a member of the LLP (Limited Liability Partnership)?
Yes, a foreign resident can become a member of the LLP on the condition that out of two designated partners, one must be Indian National.
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What is ‘Statement of Accounts and Solvency’ and whether it has a prescribed format?
Every LLP (Limited Liability Partnership) in prescribed LLP Form 8 which contains a declaration on the of solvency of the LLP by the designated partners.
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What are the documents required to be filed by an LLP annually?
The LLP is required to form the following:
- Form 8
- Form 11
- Annual return