Limited Liability Partnership (LLP) Registration
Limited Liability Partnership (LLP) was launched in India in 2008 by way of the Limited Liability Partnership Act. The fundamental reason behind the launching of Limited Liability Partnership (LLP) to give a Perfect business structure for Small and Medium-sized business houses going for Partnership.
It restricts the liabilities of its partners to their contributions to the business and furthermore offers each partner security from the negligence, wrongdoings or inadequacy of different partners.
Since, its launch in 2010, LLPs have been generally welcomed with more than one lakhs registration in India India.
LLP is perhaps the most effortless sort of organization to incorporate and oversee in India. With a simple procedure and simple compliance formalities, LLPs are favored by Experts, Smaller scale and Independent companies that are family-possessed or intently held.
What is the difference between LLP & Partnership
Getting a limited liability(LLP) partnership is registered is slightly costlier than registering a partnership. Taxxinn helps you register a limited liability partnership (LLP) completely online.
LLPs are registered in India under the Central Government i.e Ministry Service of Corporate Affairs. Partnership firms are registered under State Government i.e Registrar of Firms which is fully controlled by the state government.
Limited Liability Protection:
One of the important benefits of Limited Liability Partnership compared to a partnership firm is that one partner is not liable or responsible for unfortunate behavior or carelessness or misconduct. An LLP additionally gives restricted liability protection to the proprietors from the debts of the LLP. In any case, in contrast to private limited company shareholders, the partners of an LLP reserve the right to manage with the business directly.
Limited Liability Partnership(LLP) are separate legal entities and the liabilities and assets are separate from the partner of LLP. Whereas the Partnership firm is not a separate legal entity.
Advantages of registering a business as an LLP?
The cost of registering a Limited Liability Partnership(LLP) is the lowest and even the same as other commonly registered entity PVT or OPC.
The compliance for Limited Liability Partnership(LLP) is least compared to PVT or OPC registration.
In contrast to Private Limited Company, LLP isn’t required to get audited on the off chance that nil turnover.
Limited Liability Partnership(LLP) registration requires at-least two individuals to kick start and there is no minimum capital required.
Profit can be pulled back effectively without paying any tax, not at all like companies.
The flexible agreement permits to draft rules and guidelines as according to one advantage.
In a year totally of two forms are just required to be filed for an LLP.
LLP Registration Process
LLP registration procedure is easy but a professional would be needed to complete the same. In addition, the procedure has been completely changed by the government in order to promote the ease of doing business. TaxxInn is experienced in LLP Registration with an experience of registering more than 100 LLP firms and consulting hundreds of LLP partnerships throughout India.
Apply Digital Signature Certificate
The first step of the LLP Registration process is to apply for a Digital Signature Certificate to the designated partners of the proposed LLP. This is one of the important steps as the registration process of LLP is done online and requires the forms to be digitally signed.
1 of 6 steps
Check for LLP’s Name availability
Before the process of registering LLP. We will ask you for a few names of your choices. We need to check the availability of the name to make sure it’s already not taken. Names can be checked on the MCA portal. This is done in order to avoid rejections. .
2 of 6 steps
Name Approval and Reservation
Name Approval or Name Reservation is the method of reserving a unique name via RUN (Reserve Unique Name) submission form. A list of two proposed names of the LLP will be submitted to the authority for approval. The ROC reserves a name out of two names, and the LLP registers with the same name. The Registrar will approve the name only if it is not considered undesirable by the Central Government. Nor name should not relate in any way to any of the existing partnerships, LLPs, trademarks or corporate entities.
3 of 6 steps
MOA & AOA Submission
Once the name has been approved, it is necessary to draft up a Memorandum of Association and Articles of Association. Both MOA and AOA are registered with the declaration of agreement of the MCA.
4 of 6 steps
Get Incorporation Certificate of LLP
When the Registrar approves your MOA and AOA, you ‘re closer to having your LLP licensed. The next step is to obtain an LLP Incorporation Certificate. You can do this by submitting all the documents to the Registrar. The time frame is between 2 and 12 days. Once you have your LLP Incorporation Certificate, you ‘re ready to go.
5 of 6 steps
The LLP agreement is very important in the context of a limited liability partnership, as it lays down mutual rights and obligations between the partners and between the LLP and the partners. The partners enter into the LLP agreement on the registration of the LLP by filing form 3 online on the MCA portal. This process must be carried out within 30 days of the date of incorporation.
6 of 6 steps
Checklist for Registering an LLP in India.
In order for any Limited Liability Partnership(LLP) to be registered in India, the below conditions have to be met.
A Limited Liability Partnership(LLP) must have at least two Designated Partner and more, there can be 15. Of the directors in the business, at least one must be an occupant of India.
The name of your business must be Unique. The recommended name should not match any current organizations or trademarks in India.
Minimum Capital Contribution:
There is no Minimum capital Contribution to a company. A Limited Liability Partnership(LLP) should have an authorized capital of in any event Rs. 1 lakh.
The registered office of an organization doesn’t need to be a business space. Indeed, even a leased home can be the registered office
Shareholder enjoys limited liability to the extent of capital invested. Shareholder’s personal assets protected in the event of the company’s insolvency.
Separation Of Management & Shareholders
Management & shareholders can be separated. A shareholder can invest the fund in fruitful business without managing & Management can operate their business without frequent interruption of investors
Separate Legal Entity
A company is a Separate legal entity from its Owners and Management in the eyes of law.
A business of the Company will not affect if there is any change in the ownership of the company.
Easy Equity Funding
Startups businesses can easily raise funds from investors on an equity basis.
Every Pvt Ltd Company enjoys for recently announced start-up tax exemption, if meets eligibility criteria.
FAQs on LLP Registration
The LLP represents a Limited Liability Partnership it is a superior version of a general partnership firm. It is governed by a limited liability partnership act 2008.
A Limited Liability Partnership(LLP) must have at least two Designated Partner and more.
The Designated Partners should be more than 18 years old and must be a natural individual. There are no limitations as far as citizenship or residency. Along these lines, the LLP Act 2008 permits Foreign Nationals including Foreign Companies and LLPs to consolidate an LLP in India, provided least one of the director should be resident of India.
There is no Minimum capital Contribution to a company. A Limited Liability Partnership(LLP) should have an authorized capital of in any event Rs. 1 lakh
Yes, NRIs or foreigners can be a director or a partner of LLP. However, foreign participation above 50% will place the company under the category of Foreign Company
Yes, a salaried individual can turn into the director in private limited, LLP or OPC private restricted organization. One needs to check the work understanding if that takes into account such arrangements. In a lot of cases, the businesses are very OK with the way that their representative is a chief in another organization.
There is no validity for Limited Liability Partnership(LLP) Registration Certificate, it is for a lifetime.
Indeed, one can maintain multiple businesses under one name LLP.
Of course, you can have your family member in your LLP as a Partner
If you have all the documents in order, it will take no longer than 30 days. It is dependent on the ROC.
LLP agreement is the understanding which is signed and executed among the partners of LLP. The LLP agreement is to be submitted to roc for getting the LLP registered.