LLP registration
Get Limited Liability Partnership registration certificate with PAN and TAN
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Introduction
Limited Liability Partnership (LLP) is a relatively new form of business entity in India. It is a hybrid form of business that combines the advantages of a partnership and the limited liability of a company. The concept of LLP was introduced in India in 2009, and since then, it has become a popular choice for entrepreneurs looking to start a business.
What is an LLP?
An LLP is a legal entity that has a separate legal identity from its partners. It has the benefits of a partnership, such as flexibility in management, tax benefits, and ease of formation, and the benefits of limited liability, which means that the partners are not personally liable for the debts of the business. This means that the personal assets of the partners are not at risk if the business is unable to pay its debts.
Advantages of forming an LLP
Some advantages of LLP registration are:
1. Limited liability:
The partners of an LLP have limited liability for the LLP’s debts and obligations. This means that their personal assets are not at risk in case of any losses or lawsuits against the LLP.
2. Separate legal entity:
LLP is a separate legal entity, which means that it can own property, enter into contracts, sue and be sued in its own name. This provides the LLP with a separate legal identity from its partners.
3. Perpetual existence:
LLP has perpetual existence, which means that the LLP continues to exist even if one or more partners leave the LLP or pass away.
4. Easy to manage:
LLP is easy to manage as it has fewer compliance requirements as compared to a company. There is no requirement of conducting board meetings, shareholder meetings, or maintaining records of these meetings.
5. Tax benefits:
LLPs enjoy tax benefits as they are taxed at a lower rate compared to a company. Moreover, the partners of an LLP are taxed as individuals and not as a separate entity, which leads to tax savings.
6. Easy to form:
LLPs are relatively easy to form and can be registered with the Ministry of Corporate Affairs (MCA) within a few weeks. The registration process is online and does not require much documentation.
7. Flexibility in ownership and management:
LLP provides flexibility in ownership and management. There is no limit on the maximum number of partners, and they can be individuals, companies or LLPs. Moreover, the partners are free to manage the LLP as per their own convenience and interests.
Eligibility for LLP Registration
Here are the eligibility criteria for LLP registration:
1. Partners:
An LLP must have at least two designated partners who will be responsible for managing the day-to-day affairs of the LLP. There is no limit on the maximum number of partners an LLP can have. The partners can be individuals or corporate entities.
2. Registered office:
Every LLP must have a registered office in India from the date of its incorporation.
3. Designated Partners:
All partners in the LLP are not responsible for the management of the LLP. At least two partners must be designated partners, and at least one of them must be a resident of India.
4. Capital Contribution:
There is no minimum capital contribution requirement for LLP registration. Partners can contribute any amount they deem appropriate.
5. Age limit:
There is no age limit for partners in an LLP. Even minors can be a partner in an LLP with the consent of their guardians.
6. Foreign nationals:
Foreign nationals can also be partners in an LLP, subject to the Foreign Exchange Management Act (FEMA) guidelines.
It is important to note that individuals or entities prohibited from entering into a partnership or a limited liability partnership under any law cannot form an LLP.
Documents Required for LLP Registration:
LLP registration requires certain documents to be submitted along with the application form. The following are the documents that are required for LLP registration:
1. PAN Card:
The LLP partners must have a valid PAN card.
2. Address Proof:
The partners must submit their address proof, which can be any of the following documents:
- Electricity Bill
- Telephone Bill
- Bank statement
3. Identity Proof:
The partners must submit their identity proof, which can be any of the following documents:
- Aadhaar Card
- Passport
- Driving License
- Voter ID Card
4. Passport Size Photograph:
Recent passport size photograph of the partners is required.
5. Digital Signature Certificate:
All designated partners of the LLP must have a Digital Signature Certificate (DSC) issued by a certifying authority.
6. LLP Agreement:
The LLP agreement must be drafted and submitted along with the registration application.
7. Address Proof of Registered Office:
The registered office address proof must be submitted, which can be any of the following documents:
- Property tax receipt
- Water bill
- Electricity bill
- Telephone bill
Process of LLP registration in India
The process of LLP registration in India is as follows:
Step 1: Obtain a Digital Signature Certificate (DSC)
The first step in LLP registration is to obtain a Digital Signature Certificate (DSC) for all the partners. The DSC is used to sign the documents electronically.
Step 2: Name reservation
The next step is to reserve a name for the LLP. The name should be unique, and it should not be similar to the name of any other company or LLP. The name can be reserved online through the Ministry of Corporate Affairs (MCA) portal.
Step 3: File Fillip form
Once the name is approved, the next step is to file Fillip form.
Step 4: Payment of fees
The final step in LLP registration is to pay the fees for the registration. The fees are based on the amount of capital invested in the business.
Once the ROC is satisfied with the documents submitted, it will issue a Certificate of Incorporation. This certificate confirms the formation of the LLP. Also you will get PAN and TAN.
The LLP registration process can take anywhere between 15-20 days. It is important to ensure that all the required documents are submitted correctly and all the formalities are completed on time to avoid any delays in the process.
Cost of LLP Registration
The cost of LLP registration may vary depending on various factors such as the state in which the LLP is registered, the number of partners, the amount of capital contribution, and the fees charged by the professional helping with the registration process. However, on average, the cost of LLP registration can range between Rs. 7,000 to Rs. 15,000. The cost includes government fees, professional fees for the assistance, and stamp duty charges. Additionally, the cost may also vary depending on the type of LLP agreement opted for by the partners. It is important to note that the cost may also increase if there are any errors in the application or if there are any additional requirements for the registration process.
Conclusion
In conclusion, LLP registration in India is a relatively easy and straightforward process. An LLP offers several benefits to entrepreneurs, including limited liability, tax benefits, and flexibility in management. It is important to note that once an LLP is registered, it is subject to certain compliance requirements, such as filing of annual returns and maintenance of proper books of accounts. It is recommended that entrepreneurs seek the advice of a professional before registering an LLP to ensure that they comply with all the legal requirements.
