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LLP Registration

LLP Registration

If you are thinking of registering a limited liability partnership company then we can help you and it is a great idea for any start-up to start their new business with a limited liability partnership company.

Limited liability partnership Act 2008 which is a hybrid of the Indian Partnership Act 1932 and company act 1956 which enacted for the creation, operation and relevant matters of limited liability partnership.LLP possesses the qualities of sole proprietorship, partnership and company. In this a partner is not responsible for the misconduct and negligence of another partner, this feature is a most significant compared to unlimited partnership.LLP has a separate legal entity and its liability is limited to its assets. The liability of its partners is also limited to the contribution made by them. A LLP firm has to putting a LLP word at the end of its name. Its important document is the LLP agreement.

  • A limited liability partnership is an association formed by two or more persons for the purpose of profit, which is made by legislation and has a separate legal existence. Its partner’s liability is limited to the contribution made by them. Its existence remains unaffected by coming and going of partners. On LLP there is no effect of retirement or admission of partners.
  • LLP has own existence compared to partnership. In this each partner acts as an agent of LLP and not as an agent of the other partners. It is mandatory to register with the registrar of LLP. Due to legal existence of LLP, it can sue anyone and anyone can sue on LLP.

Know the basics

Minimum Requirements for LLP Registration

Number of members

Minimum tow members required for LLP company registration and maximum no limit.

Partner in an LLP

At least one designated partner should be an Indian resident.

Authorized Capital

LLP should have an authorized capital of at least ₹1 lakh.

Documents required for a LLP Registration

  • PAN card of all partners
  • Aadhar card or Driving license or passport
  • Passport size photograph of all partners
  • Bank statement
  • Registered office address proof (Rent agreement or Electricity Bill)
  • Stamp paper for LLP agreement
  • No – objection certificate

Process for Register an LLP

  • Step 1.Obtaining DSC And DIN

    All the forms that need to be submitted online require the directors’ DSC. So, the first step in the process is to get DSCs and DINs for 2 partners. We collect the necessary information from you and file it on your behalf.

  • Step 2.Application For Name Approval

    Simultaneously, we check if the name you want to register under is available and reserve it for your LLP. You can check for name availability in the MCA portal.

    The approval of the name will be made by the registrar only if the central government does not deem it undesirable. The name should not hold any resemblance to any of the existing partnership firms, LLPs, trademarks, or body corporates.

  • Step 3.LLP Agreement

    The next step is to draft the LLP agreement and other documents for registration. An LLP agreement is very crucial in a limited liability partnership as it determines the mutual rights and duties amongst the partners, and between the LLP and the partners. Thus, our experts take utmost care in drafting this agreement.

  • Step 4.LLP Incorporation Certificate

    Our team will file the necessary forms and documents with the registrar. Once the registrar approves all the forms and documents, you get your LLP incorporation certificate and are almost set for running your business.

  • Step 5.Apply for Your PAN, TAN, & Bank Account

    As soon as you get the incorporation certificate, we will apply for the PAN, TAN, and bank account for your LLP.

    The following are included in LLP Registration

    • DSCs for 2 directors.
    • DINs for 2 directors.
    • Drafting of MoA & AoA.
    • Drafting partnership agreement.
    • Registration fees and stamp duty.
    • Company incorporation certificate.
    • PAN and TAN registration.

Advantages of a LLP

  • 1.Limited Liability

    The members of an LLP are only liable for a small amount of debt incurred by the firm. In case of bankruptcy, the personal assets of the partners will not be taken into account. On the other hand, for proprietorships and partnerships, the personal assets of directors and partners will be seized if the business goes bankrupt.

  • 2.Separate Legal Entity

    An LLP is a separate legal entity from the partners in it. It has an uninterrupted existence that follows perpetual succession, i.e., the partners might leave, but the business remains. The terms of dissolution have to be mutually agreed upon for the firm to dissolve.

  • 3.Flexible Agreement

    Transferring the ownership of an LLP is also simple. A person can easily be inducted as designated partner in LLP and the ownership is transferred to them.

  • 4.Suitable For Small Business

    LLPs having a capital amount less than ₹25 lakhs and turnover below ₹40 lakhs per year do not require any formal audits. This makes registering as an LLP beneficial for small businesses and startups.

Frequently Asked Questions

  • Q1.What is an LLP agreement?

    Regarding the relationship between the various partners in the LLP, an LLP agreement is made between the partners and the LLP. An LLP agreement typically includes management guidelines, provisions for adding new partners, methods for formulating policy, etc.

  • Q2.What is the minimum number of partners required to form an LLP?

    An LLP must be established with at least two designated partners, as per the LLP Act. The designated partners are in charge of completing all requirements necessary to establish and maintain an LLP.

  • Q3. How to incorporate LLP?

    You can reach out to Vakilsearch to complete the process, we can register your LLP within just a few minutes. Make sure to resolve all your queries with our expert team.

  • Q4. Is maintaining an LLP less expensive than a private limited company?

    Yes, running an LLP is significantly less expensive than running a private limited company, especially in the beginning. This is so because many compliances, like an audit, only apply to LLPs once they have a sizable turnover. In their first year, LLPs typically spend half as much on registrations and compliance tasks as a private limited company does.

  • Q5. What kind of start-ups commonly register LLPs?

    Typically, only start-ups that will not be looking for venture capital funding register LLPs. This is because venture capitalists only invest in private and public limited companies.

  • Q6. What is the process to register an LLP company for foreign directors?

    The Indian government has permitted 100% foreign investments in LLPs to welcome foreign investors and to permit NRIs and other foreign citizens to freely invest in Indian business. Non-resident Indians, also known as NRIs, and foreigners who seek to launch or conduct business in India typically choose a private limited company. This is because private limited firms permit 100% FDI through the automatic method for several industries.

  • Q7. What are the primary posts involved in an NGO ?

    An NGO has basically 3 min posts which that of a President, General Secretary and Treasurer. In some cases, you can also have a Vice President.