Limited Liability Partnership (LLP) Registration
LLP was started in India under the “Limited Liability Partnership Act, 2008” which states that partners are not liable for other’s misconduct. LLP is preferred by “experts, Micro and Small businesses” that are family-owned or are closely-held.
Limited Liability partnership provides the advantage of limited liability to its partners and at the same time needs essential care. The partners of a private limited company have limited responsibility to creditors. In case of failure, banks/creditors can just sell the organization’s assets and not the individual assets of directors
Accordingly, all partners in an LLP enjoy a type of “limited liability”, which acts as a protection for them, within the partnership. LLP Registration is done by “FinBiz” which is situated in “Delhi NCR, Bengaluru, Mumbai, Chennai, and all other Indian cities.”
Choose LLP because
- Double benefits- Company and a Partnership
- Limits the liabilities of its partners
- No partner will be liable for other partner’s misbehave
- Cheaper to incorporate than a private limited company
Documents Required For LLP Registration
- Copy of PAN Card of partners
- Passport size photograph of partners
- Copy of Aadhaar Card/ Voter identity card/ Driver’s license as address proof
- Electricity/ Water bill/ Telphone bill/ Latest bank statement as proof of Registered Office (Business Place)
- Copy of Sale Deed/Property Deed (If owned property)
- Landlord NOC (Format will be provided)
- Digital Signature Certificate
- Passport (in case of Foreign Nationals/ NRIs)
- Copy of Notarised Rental Agreement
- Copy of NOC from the property owner
Why choose LLP Registration?
- It has a different legal entity, not at all like partnership firms.
- The liability and duty of each partner are limited to the commitment made by the partner.
- The expenditure on establishing an LLP is low.
- An audit is not required as LLPs are medium and independent companies.
- Less agreement and guidelines in the formation of LLP.
- No terms for least capital commitment.
- The responsibility of an LLP can be effortlessly moved to someone else. All you require is to select them as a Designated Partner of the LLP.
- An LLP has a ‘never-ending progression’ that is broadened endurance until it is brought to an end by a shared agreement between the partners.
7 Steps to form an LLP
Digital Signature Certificate (DSC)
Prior to beginning the procedure of enlistment, you should Register for the DSC for the assigned partners of the proposed LLP. Applying for DSC is necessary because the procedure for registering an LLP is done online and requires to be digitally signed. In this way, the partners in an LLP must get the DSC from government-affirmed confirming offices.
Application of DIN (Director Identification Number) and DPIN (Designated Partner Identification Number)
Subsequent to applying for DSC, the next stage is to enlist for DPIN and DIN for the proposed Partners of the LLP, within a time period of 5 to 7 days. The application for the allocation of DIN must be made in Form DIR-3. You need to attach a scanned copy of the Aadhaar card and PAN card to the form. The form should be marked by a Company Secretary who is in full-time employment with the company or by the “Managing Director, Directors, or CEO” of the existing company, in which the candidate shall be designated as a director.
Name Approval and Reservation with ROC
“LLP-RUN” i.e. “Limited Liability Partnership-Reserve Unique Name” is required to register for the reservation of the proposed LLP’s name. This is additionally treated by the Central Registration Center under Non-STP. In any case, before circulating the name in the form, it is suggested that you utilize the free name search facility on the “LegalRaasta” website. “One to six” is the limit of proposed names, which are to be given to the “MCA”. The registrar will approve the name only if the name is not impractical in the opinion of the Central Government and does not match any existing partnership firm or an LLP.
Name approval procedure will take 5 to 7 working days. A re-submission of the form should be made within 15 days, in case of an occurrence of dismissal.
Document Submission
We will create all the required documents including LLP agreement.
Get Incorporation Certificate of LLP
The form utilized for joining is FILLIP (Form for consolidation of Limited Liability Partnership) which must be enrolled with the Registrar who has jurisdiction over the state in which the enrolled office of the LLP is located. The form will be an incorporated structure. Joining records can be introduced to the “MCA” alongside an application for Incorporation, PAN and TAN of the LLP.“MCA” will endorse the application for consolidation within 5 to 7 days. Incorporation certification is confirmation that the organization has been formed. It likewise includes your CIN number.
Appeal for PAN, TAN and Bank account
After the completion of the above points, you are required to apply for “PAN and TAN” and you will receive them in 7 working days. You can submit the Incorporation endorsement, “MOA, AOA, and PAN” with the bank for opening your bank account.
Register for LLP Agreement
LLP agreement oversees the common rights and obligations between the LLP and its partners. LLP agreement should be enrolled in Form 3 which is to be filed within 30 days after the date of formation.
Important forms in LLP Registration
- RUN – LLP Reserve Unique Name-Limited Liability Partnership- A form for reserving a name for the LLP
- FiLLiP – A Form for incorporation of LLP
- Form 5- Notice for change of name
- Form 17- Application and statement for the conversion of a firm into LLP
- Form 18- Application and Statement for conversion of a private company or unlisted public company into LLP
Eligibility For Private Limited Company Registration
Minimum 2 Partners (18 years and above age)
No Capital Requirement
DPIN for all the Directors
At least one Designated partner should be an Indian Resident
Checklist: If your company qualifies for LLP in India
A must company, fulfill certain requirements, for it to be enlisted as an LLP Any company who has:
- Copy of PAN Card of partners
- Passport size photograph of partners
- Copy of Sale Deed/Property Deed (If owned property)
- Landlord NOC (Format will be provided)
- Digital Signature Certificate
- Passport (in case of Foreign Nationals/ NRIs)
- Copy of Notarised Rental Agreement)
- Copy of NOC from the property owner
- Copy of Aadhaar Card/ Voter identity card/ Driver’s license as address proof
- Electricity/ Water bill/ Telphone bill/ Latest bank statement as proof of Registered Office (Business Place)
Factors to Consider While Selecting an LLP Name
The Registrar of Companies (RoC) has issued specifying rules for LLPs. You should meet the standards or your application may wind up getting dismissed, prompting a much longer procedure..
Short & Simple
The name of an LLP must be short and not excessively long. It must be easy to pronounce by other people. And it should get inked in the minds of people when they hear it the first time itself.
Meaningful
The name of your LLP Company should be connected to your business. It must suit the organization’s marking. For instance, Lilliput implies small, as “Lilliput” is a kid’s clothing brand..
Unique Component
The name of your company should not either be identical or the same as a current company, business, or trademark. You can go to “search.FinBiz.co.in” to confirm if your company’s name is similar or identical to others. You should stay away from plural variants e.g., “Amazons” or changing simply the letter Case, adding spacing, or punctuation marks in an already existing company’s name.
Blacklist
Abstracts, adjectives, and generic words are denied. So a name like “XYZ” will be rejected on the spot. The following words “bank, exchange, and stock exchange” will also be denied.
No same Trademarks
There should not be a certified trademark by the identical name on the “IP India” website. If there exists one, then also your chosen company name can be approved if you are able to obtain a “NOC” from its owner, which will authorize you to use the name.
Descriptive Name
The chosen name should be descriptive, meaning that the name itself should be able to tell about a number of traits of the LLP.
Suffix
The name of your LLP Company must finish with the suffix “LLP” is an instance of a limited liability partnership.
Should not be illegal or offensive
While getting an LLP name to ensure that you don’t conflict against the law. It should not be abusive or against the traditions and convictions of any religion and should not harm anyone’s respect.
Penalties Provisions in LLP annual compliance default
A must company, fulfill certain requirements, for it to be enlisted as an LLP Any company who has:
- According to the “Limited liability Partnership Act, 2008”, it is compulsory to register for all the prescribed compliances on an annual basis. There is a provision for a penalty, in case of any failure in registering Form 8 and Form 11, for reporting of the LLP’s financial statements and annual returns. A fixed amount of Rs.100 per day, for each agreement that is not registered. No maximum limit is specified
- Every enrolled LLP is required to do Income tax return filing with Annual filing. This filing should be done before the 30th of September every year. After LLP registration, any LLP which fails to meet this deadline will be imposed with a penalty of Rs.5,000 and the filing must be done by 31st December of that year. If the LLP fails to reach this deadline, then the penalty amount will be double that is Rs.10,000.
It takes 15 to 30 working days (approx.) to complete the Limited Liability Partnership Registration method. The timeline may fluctuate depending upon reactions from the ROC department.
What are the Compliance Requirements after an LLP Company Registration in India?
Post-Incorporation Compliances
When a Limited Liability company enrollment is done, then the recently incorporated LLP is relied upon to get done with the following compliances. These compliances are one time in nature and are not repeated..
1. Partnership Agreement Filing
2. Apply for PAN & TAN
3. Open Bank Account
Annual Compliances Requirements after the LLP Registration
After the completion of the formation procedure, LLP is relied upon to comply with the yearly consistent necessities. If the number of transactions after the LLP registration is zero, then LLP will record NIL return.
The following returns are relied upon to be enlisted:
1. Statement of Account & Solvency
2. LLP Annual Return
3. Income Tax Return
Frequently Asked Questions
At least two partners are required for an LLP registration. There is no limit to the maximum number of partners. If you are the sole owner, you can register as a “One Person Company”.
Any individual/organization can become a partner in an LLP including foreigners/NRIs. However, the individual must be 18+ and should have a valid PAN card.
Our procedure is 100% online which means there is no compulsion for you to be present at our office physically. A scanned copy of documents can be sent to us via mail, and we will handle the rest. You will get the company incorporation certificate from MCA via courier at your business address.
We do not have any hidden charges. Our system is quite transparent. After making your payment, we will send you an all-inclusive invoice, with no hidden charges. Our team supports you till you get your LLP bank account.
You need to have a bank account with a minimum balance of Rs.5,000. You need not invest any more capital in starting the business. You need not even deposit this amount to the bank. You can also show that the capital has been utilized as the pre-incorporation expenses of LLP e.g., LLP registration expenses. You can also show that this capital has been infused in form of assets such as computers etc.
Yes, but only after he has been assigned with DIN/DPIN. However, at least one designated partner in an LLP must be a Resident of India. The foreign director can also be a majority shareholder in the company.
Yes, you can register your LLP at your residential address. It is perfectly legal to start the company at your home or in your garage. “MCA” team typically doesn’t visit your office. You just have to provide your home address proof such as a rent agreement or an electricity bill.
Yes, a salaried person can become a partner in an LLP. You need to check your employment agreement if it allows for such provisions. In most, cases employers are comfortable with the fact that their employee is a director in another company.
No, you cannot convert your LLP into a Private Limited Company. Both, the “LLP Act, 2008 and the Companies Act, 2013” do not have any provisions which allow the conversion of an LLP intoin to a “Private limited company”. However, if you want to expand your business, then you can register a new “Private Limited Company” with the same name as that of the LLP. The LLP Company just needs to issue a no-objection certificate (NOC).
“FINBIZ” provides LLP incorporation services across India in all cities. We have done LLP registration in “Mumbai, Delhi, Gurgaon, Noida, Bangalore, Chennai, Hyderabad, Ahmedabad, Kolkata, Surat, Pune, Jaipur, Lucknow, Kanpur, Nagpur, and various other Indian cities”