Keynotes on LLP Registration
It takes 10 to 15 days for LLP Registrationn
Completely online service - No physical presence required
No minimum capital requirement
A LLP (Limited Liability Partnership) can be better business compared to a regular partnership. LLP is the easiest type of business to be incorporated and formed. One Click Business Solutions Private Limited is the market leader to provide its clients with LLP registration services. We have experienced professionals to process LLP registration documents appropriately in order to avoid any legal hazards. They are well-versed in the procedure of LLP registration services.
One Click Business Solutions Private Limited also provides its clients with other business services like private limited company registration, public limited company registration etc. Although client document submission and government processing time are important factor yet, we take utmost care to register your start-up within a quick turnaround time. You may contact us to know more about LLP registration online procedure.
Get in touch with us to know how to start your LLP today and establish your start-ups quickly. You may get a free consultation on LLP registration and business establishment by making an appointment with our qualified and experienced LLP registration consultant. So it's your time to ensure fastest LLP registration and business setup. We at One Click Business Solutions Private Limited are always committed to serve our clients in the best way.
LLP or Limited liability partnership (LLP) is a type of business organization in India. LLP registration provides business owners with enhanced advantages as compared to the general partnership business. LLP contributes benefits of both a company and a general partnership business.
Small and medium sized business owners and professional service providers prefer LLP business. LLP registration in India is highly opted by businesses that are family-based or closely managed by few people.
LLP (Limited liability partnership registration) is known as the official procedure to incorporate the LLP business organization. The business partners submit essential documents to the Ministry of Corporate Affairs in order to get the certificate of incorporation. It is suggested to get this process done with the help of professionals.
LLP businesses are governed by the Limited Liability Partnership Act, 2008. Besides, 'LLP' word should be added by every LLP in India as suffix at the end of the name of the LLP.
No need of Minimum Capital –
There is no need of minimum capital to incorporate LLP.
Limited Liability –
In the case of LLP, the liability of all the partners is limited. The personal assets of the partners will not be taken to pay off the company's losses.
Limited liability also denotes that the partner is not affected by the effects that occur due to the wrong actions of other partners.
Simple transfer of ownership -
Ownership of LLP can be transferred easily. Unlike, the common partnership business, introduction of a new partner does not have influence on its existence.
No need of Audit -
In the case of LLPs, there is no need of an audit except annual turnover exceeds the limit of Rs 40 lakhs or the capital contribution exceeds Rs 25 lakhs.
Distinct Legal Entity -
LLP is a distinct legal entity regarding its capability. The principle of constant sequence is followed by LLPs. When a new partner is added or an existing one exits, it does not affect its existence. Besides, the partners do not own the assets of the business.
However some limitations are involved in the registration of LLPs. Let us have a summary of them :
Money cannot be raised from the public by Limited Liability Partnership business.
LLP can be affected with any wrong action taken by one partner without his other counterparts
Venture capital business and angel investors do not prefer to make investment in LLPs. Private Limited companies prefer to do LLP registration.
At least two designated partners –
At least two designated partners are essential for LLP registration but there is no maximum limit for the number of partners (Partners can be human being or corporate body)
One partner residing in India –
At least 1 Designated Partner must live in India.
Registered office -
Address proof is mandatory for the registered office. (Office can be either a residential or commercial place)
DSC (Digital Signature Certificate) is meant for all Designated Partners
Required details :
Email ID and Mobile number
PAN and Aadhaar
Let us know about the documents used for LLP registration :
For all Designated Partners
PAN Card : A copy of the PAN Card of all the partners
Identity proof : Voter's ID/Driver's License/Passport of Partners during incorporation
Address proof : Current telephone/mobile bill and bank statement issued on the proposed partner's name
Passport : (When a foreign national or NRI is a partner): Passport needs to be notarized as prescribed by the applicable authorities
Photograph : Passport-sized photographs of all directors and shareholder are required
For planned Registered Office (Residential or Commercial)
Current Registered Address Proof (property tax receipt/electricity bill/ landline bill/water bill)
No Objection Certificate (NOC) from the owner
If the property is on rent, scanned copy of notarized rental agreement
Following steps are to be followed in order to perform LLP registration in India :
Step 1 - Application for Digital Signature Certificate (DSC) -
At first an application is to be made to get DSC for all proposed partners. Digital signatures (DSC) are used while filing LLP registration, tax returns and ROC compliance forms.
Step 2 - Approval of Name -
Filing for name approval form to ROC is to be done through LLP RUN (Reserve Unique Name) feature exists on the website of Ministry of Corporate Affairs.
Under this method, maximum two names can be applied. Maximum three working days are needed to complete name approval by the Registrar of LLP.
Step 3 - Filing of Application for Incorporation –
Once name approval of the LLP is completed successfully, an application for incorporation is essential to be filed in e-Form FiLLiP. Fees of LLP registration is stated in the website of Ministry of Corporate Affairs. Application for incorporation must include the following :
Details of the designated Partners
All the supporting documents as attachments
It needs to be submitted to the registrar, having authority across the state where the LLP's registered office is situated.
Step 4 – Filing of Limited Liability Partnership Agreement –
This is a must to submit a properly notarized partnership agreement in Form-3 on the website of Ministry of Corporate Affairs within 30 days since when incorporation is done. This step is to be done after completing LLP registration and getting Certificate of Registration from Ministry of Corporate Affairs.
Step 5 – Filing of PAN Application -
For the newly registered LLP, once its registration process is done, this is compulsory to file PAN Application by the applicants and all the relevant documents are required to be given.
Earlier applicants were needed to obtain Designated Partner Identification Number (DPIN) before filing for name reservation but this rule has been discontinued in LLP (2nd Amendment) Rules, 2018. Now, distribution of DPIN is done directly along with LLP registration in India by Ministry of Corporate Affairs.
Fees of LLP registration in India involves nominated partner identification number (DIN) for 2 partners, the cost for 4 Digital Signature Certificate (DSC) for 2 partners, incorporation fee, charge for name reservation of LLP, notary and stamp charge. All this including professional fees may vary as it depends on the service providers. Generally 10 to 15 days are required to register a LLP in India.
Limited Liability Partnership (LLP) was launched in 2008. It becomes a popular legal status for businesses quickly. Its main plus-point as compared to general partnership includes that it has limited liabilities of its partners about their contributions to the business. LLP also offers protection to its partner from the misdeeds, negligence or ineffectiveness of the other partners.
During the registration process, the need of money to establish a LLP is not of a major concern. A LLP can be started with any amount of capital and there is no need to produce evidence of capital investment at the time of incorporation procedure.
Minimum 2 partners are required to incorporate a Limited Liability Partnership and there is not any maximum limit about the number of partners.
Following documents of partners are required :
ID Proof – Any one of Voter ID/ Passport / Driving Licence
In order to incorporate a LLP, following are the steps :
Reservation of Name
Incorporation of LLP by properly filing e-form 2 which includes the details of proposed LLP
It is necessary to file LLP agreement in E-form 3 within 30 days since when LLP incorporation is finished
No, registered office is not needed. Address of rented home or own residential home can be produced as the address of registered office of a LLP. Office address can be changed after incorporation of LLP is completed.
No, LLP is not a good option to collect funds from private investors. Investment in a company is done by investors instead of the stake or equity but stake cannot be accessed by investors.
Yes, foreigners and NRIs can work in a Limited Liability Partnership as partners. A DPIN (Designated Partner Identification Number) is to be obtained. However one of the partners must be Indian resident/ national.
Yes, a salaried individual can become the director in LLP. There is not any legal objection regarding this. However he needs to follow the employment agreement if there is any restriction on doing so.
No. Once the LLP is created, it will be legitimate till it is closed down by the owners officially but LLPs must file basic returns with the office of Registrar of Companies every year.
If the turnover of a LLP is less than 40 lakh and capital contribution is below Rs 25 lakh, there is no need to file annual compliances with registrar.
It is essential to meet annual compliances regularly as they are the factor on which the validity of a LLP depends. The moment the annual compliances are not produced by the LLP, it will become a dormant. After certain time, its registration will be removed.
Yes, a partnership which is into existence can be converted to a LLP. It needs to comply with the provisions of Schedule 2 of the LLP Act and Clause 58. Form 17 is required to be filed with Form 2 in order to do such conversion or incorporation.
Prescribed LLP Form 8 includes a declaration about the solvency of the LLP done by designated partners.