Limited Liability Partnership (LLP) Registration in India
Limited Liability, Lesser Compliance, Cost Effective, Corporate Form, Ease of Business
Related Guide
Limited Liability Partnership (LLP) is a body corporate formed and registered under the Limited Liability Partnership Act, 2008 and is a legal entity separate from that of its partners. LLP has perpetual succession. Any change in the partners of LLP shall not affect the existence, rights or liabilities of the LLP.
Every LLP shall have at least two designated partners who are individuals and at least one of them shall be resident in India. In case of an LLP in which all the partners are bodies corporate or in which one or more partners are individuals and bodies corporate, at least two individuals who are partners of such LLP or nominees of such bodies corporate shall act as designated partners.
The main object behind is that one partner should not be liable for the acts or negligence of other partners. It combines the features of Partnership and a Company like separate legal entity, limited liability etc. Further, it involves less legal formalities and is easy to register.
A Comprehensive Guide to LLP Registration in India
Limited Liability Partnerships (LLPs) have emerged as a preferred choice for businesses in India due to their flexible structure and reduced compliance requirements. LLP registration offers entrepreneurs a unique blend of partnership and corporate features, ensuring limited liability protection while fostering collaboration. In this guide, we delve into the intricacies of LLP registration in India, providing a roadmap for aspiring business owners.
Understanding LLP Registration:
LLP registration in India is governed by the Limited Liability Partnership Act, 2008. It offers a corporate entity structure with the flexibility of a partnership, making it ideal for small and medium-sized enterprises (SMEs) and professional service providers. To initiate the registration process, partners must first obtain a Digital Signature Certificate (DSC) and Designated Partner Identification Number (DPIN) for partner.
Documents required for registration of LLP
- Passport size photograph of all the partners
- PAN Card of all partners
- Business Address Proof for Registered Address : Latest Govt. Electricity Bill or Water Bill
- Proof of Address of Designated Partners: Utility Bill/Bank Statement/Telephone Bill which should not be later than 2 months in the name of Designated Partners
- Proof of Identity : Aadhar Card/Driving License/Voter ID Card/Passport of the Designated Partner
- Disclosure of interest in other entities
- Engagement Letter
Minimum Requirements For Limited Liability Partnership(LLP) registration
There are certain minimum requirements and eligibility requirement for LLP Registration Such requirements are as follows
- At least one Designated Partner should be Indian Resident
- Minimum two Designated Partner
- DPIN of the Designated Partners
- No Minimum Capital requirement.
- Digital Signature Certificate of one Designated Partner
- Contribution whether tangible or intangible property or other benefits of LLP
LLP Registration Process
Name Reservation for LLP Registration
LLP registration begins with selecting a unique name for your partnership. Remember that the name should not be identical or similar to any existing LLP or company. A catchy and distinctive name can leave a lasting impression on your clients and partners.
Once a unique name is selected, the process of LLP Name Reservation is to be undertaken to proceed the process.
Once the registrar receives the application for name reservation, the Govt reviews it and if everything is within the guidelines then the registrar will reserve the LLP Name. The provisions relating to LLP name reservation are been provided under section 16 of the LLP Act.
Obtain the DSC & DPIN of partners for LLP Registration
Digital Signatures are then to be obtained from any of the certifying authority for the disignated partners. The DPIN can be obtained in advance or the same may be allotted by MCA with LLP registration.
E-filing for incorporation of a LLP
Once the name is approved, an online application is required to be filed through E-Form Fillip along with the requisite documents as obtained with ROC
Get Certificate of Registration of LLP
Once the name is approved, an online application is required to be filed through E-Form Fillip along with the requisite documents as obtained with ROC
Filing of LLP Agreement
Within 30 days of the incorporation, LLP Agreement as drafted by our team will be shared and after approval from the partners it will be printed on the stamp paper and will be filed with the Registrar of Companies.
How much Income Tax is Payable by Limited Liability Partnership (LLP)
The Income Tax Slabs for LLP are same as are applicable to Partnership Firms and not a Private Limited Company. Further, LLP pays Income Tax in the same manner as a Partnership Firm does with one exception i.e Section 44AD and/or Section 44ADA is not applicable on LLP.
Let’s delve into the details of LLP tax filing, including LLP income tax rates and the procedure for filing LLP income tax.
Income Tax Rate on LLP
The rate of Income Tax applicable to LLPs is 30% on its total income.
Surcharge
A Surcharge of 12% is levied on incomes above Rs 1 crore of LLP
Health and Education Cess Rate
The income tax and surcharge will be subject to an additional 4% health and education cess on the total amount.
Key Benefits of LLP Registration:
- Limited Liability: Unlike traditional partnerships, LLPs provide limited liability protection to partners, shielding their personal assets from business liabilities.
- Flexibility: LLPs offer operational flexibility, allowing partners to manage the business as per the LLP Agreement while maintaining statutory compliance.
- Separate Legal Entity: LLPs enjoy the status of a separate legal entity, enabling them to enter into contracts, own assets, and sue or be sued in their own name.
- Tax Advantages: LLPs are taxed at a lower rate compared to companies, making them a tax-efficient choice for entrepreneurs.
- Less Compliance Formalities: The Limited Liability Partnership involves less compliance burden in comparison to any other corporate entities in thereby making it cost friendly also.
- Lower Registration Cost: The cost involved in registration of a Limited Liability Partnership is much less than any other corporate entity.
- Flexible Agreement : LLP Agreement can be modified as per the requirements of the partners like addition or removal of partners, banking transactions.
- No compulsory requirement of Audit
LLP Registration Easy Online Process:
- Submission of the documents and details to our email Id [email protected] or whatsapp number 9971782649
- Scrutiny of the documents and details by our Professional Chartered Accountants
- Application for Digital signatures of partners from our office
- Filing for LLP Name Approval
- Filing of Incorporation forms with government for approval of LLP Registration with CA certification (as may be required)
- Issuance of LLP Registration Certificate, LLP Pan Card and Tan Card
LLP Registration Fee
The fee for LLP Registration with 1 Lakh Capital and 2 Desiganted Partners is Rs 7500.
The fee for LLP Registration with GST Registration, MSME Registration and Startup India Registration is Rs 9500.
*The fee may vary on certain factors such as state of registration, capital and number of desiganted partners
LLP Compliance:
After LLP registration, partners must adhere to ongoing LLP compliance requirements, including:
- Annual Filings: LLPs must file Annual Return (Form-11) and Statement of Accounts and Solvency (LLP Form-8) with the Registrar of Companies.
- Taxation: LLPs are required to file income tax returns annually and comply with Goods and Services Tax (GST) regulations, if applicable.
- Changes in LLP Agreement: Any changes to the LLP Agreement or designated partners must be notified to the ROC within the prescribed time frame.
More about LLP Registration
LLP registration in India offers entrepreneurs a conducive environment to establish and operate their businesses with limited liability and operational flexibility. By understanding the registration process and compliance requirements, aspiring business owners can navigate the complexities of LLP formation and unlock growth opportunities. Embrace the advantages of LLPs and embark on your entrepreneurial journey with confidence.
For those seeking LLP registration in India, understanding the nuances of the process is crucial. From obtaining DSC and DIN to filing incorporation documents, each step plays a pivotal role in establishing your business as an LLP. Stay informed about the post-registration compliance requirements to ensure smooth operations. Explore the benefits of limited liability protection and tax advantages offered by LLPs. For expert guidance and seamless LLP registration services, consult trusted professionals today.
LLP Name Approval Guide
The name of the LLP should be unique which is not already been taken by any Company or LLP already. Also, the name should not be resembling to an existing company or LLP.
LLP name availability can be checked on the Govt website. The name must end with “LLP” or “Limited Liability Partnership”.
The detailed provisions related to name are given under section 15 of the LLP Act, 2008
Convert a Private Limited Company to LLP
In today’s dynamic business environment, companies often seek structures that align with their evolving needs. Converting a Private Limited Company (Pvt Ltd) to a Limited Liability Partnership (LLP) is a strategic move that combines the benefits of both structures. A Pvt Ltd offers limited liability to shareholders and structured governance, whereas an LLP provides flexibility in management and reduced compliance burdens.
Frequently asked questions on LLP Registration
Q1: Can a foreign national be a partner in an LLP registered in India?
A1: Yes, a foreign national can be a partner in an LLP registered in Jaipur, provided they comply with the Foreign Exchange Management Act (FEMA) guidelines and obtain the necessary approvals.
Q2: Is there a minimum capital requirement for LLP registration in India?
A2: No, there is no minimum capital requirement for LLP registration. You can start an LLP with any amount of capital.
Q3: How long does it take to complete the LLP registration process in India?
A3: The LLP registration process typically takes around 7 to 10 days, subject to government processing times and document submission.
Q4: Do I need a physical office space for LLP registration in India?
A4: Yes, you will need a physical address for your LLP’s registered office in India. It can be a commercial or residential address.
Q5: Can an LLP convert into a private limited company later?
A5: Yes, an LLP can convert into a private limited company, subject to compliance with the Companies Act and approval from the concerned authorities.
Q6: Registration of LLP is granted by ?
A6: LLP i.e Limited Liability Partnership Firm is registered under Limited Liability Partnership Act and Registration of LLP is granted by Registrar of Companies (ROC) as presently all LLP are registered and governed by Ministry of Corporate Affairs through e filings.
Q7: Are limited Liability Partnership are eligible for registration on Marketplaces such as Myntra, Amazon, Big Basket etc ?
Yes, Limited Liability Partnership are legal entity and are fully eligible for Myntra Registration, Amazon Registration, Big Basket Registration and registration at other market places.