LLP Registration @ 6,499

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LLP Registration is easy when done by RPG Legal. Register your LLP while sitting at home. Our dedicated team will assist you in registering your Limited Liability Partnership across India. We extend our support from documentation to preparation and filing.

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Limited Liability Partnership Registration In India

LLP was introduced in India by the Limited Liability Partnership Act, 2008. The basic premise behind the introduction of Limited Liability Partnership (LLP) is to provide a form of business entity that is simple to maintain while providing limited liability to the owners. LLP is an alternative corporate business form of business that gives the benefits of limited liability as a company and the flexibility of a partnership business. In other words, it offers benefits of both worlds by bringing simplicity in management similar to partnership firms and scope of expansion like a company. The most significant advantage of LLP is less compliance requirement.
LLPs are the preferred vehicle of business, particularly for service industry or for activities involving professionals.

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Advantages of Limited Liability Partnership

Convenient and Easy

LLP is easy to incorporate and manage a business like entrepreneurs. LLP agreements can customize in accordance to meet the needs or requirements of partners concerned. There are less formalities in areas of legal compilation, annual meeting, resolution as compared to Private Limited Company.

Dual Advantages

Compared to Partnership & Company, LLP has enjoyed the benefits of Partnership as well as the company. For example, LLP has a separate legal entity like a company and has less compliance as a partnership firm. In LLP, No partner will be personally responsible for other partners mis-conduct, negligence or wrongful act.

Less Compliance burden

LLP have to face less compliance as they have to submit only two statements, i.e. the Annual Return in form 11 & Statement of Accounts and Solvency in form 8. Whereas in the case of a private company, at least 8 to 10 regulatory formalities and compliances are required to be duly completed.

No Minimum Capital

Capital contribution means the sum of money that is contributed by each partner towards the LLP at the time of its incorporation. No minimum capital is prescribed, and it should be based on business requirements. Contribution of a partner may consist of tangible, intangible, movable or immovable property including money, property etc.

No compulsory Audit

Limited Liability Partnership is not required to audit the books of accounts. LLP’s are required to Audit their books of account only in two situations, i.e. When the contributions of the Limited Liability Partnership exceeds Rupees Twenty Five Lakhs, or When the annual turnover of the Limited Liability Partnership exceeds Rupees Forty Lakhs.

Taxation (DDT) Aspect on LLP

In case of a Limited Liability Partnership, profits are taxed at the corporate tax rate of 30 %. However, distribution of profit to the partners of the LLP is expressly exempt from tax and hence, there is no tax (equivalent to DDT) in India. Provision of ‘deemed dividend’ under income tax law, is not applicable to Limited Liability Partnership.

Documents Required For LLP Registration

Documents (1)

Documents of Partners/ Designated Partners

Two colour photograph of each Partner
Copy of PAN Card of each Partner
Identity proof of each Partner (Voter ID / Driving License/ Passport)
Latest address proof of each Partner (Bank Statement / Electricity, Mobile, Telephone Bill)

Documents of Registered Address

Utility Bill in name of the owner to the establishment
NOC from the Owner of the establishment
Rent Agreement or
Lease deed, sale deed, Property Tax Receipt

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Process for LLP Registration in India

Step 1 – Documentation & Questionnaire

Our Relationship Manager will reach out to you for the collection of the required information & documents of partners for registration of LLP. The data can be submitted online. Once the data is received, it is verified by our secretarial team and ensures that the documents are updated and accurate.

Step 2 – Obtaining Digital Signatures (DSC)

The filing process starts with issuance of a digital signature for all the partners of the proposed LLP. Our digital signature application process is completely online and OTP based, the applicant would have to complete OTP verification and a video KYC check.

Step 3 – Filing for Name Availability

The first step to incorporate LLP is the reservation of the name. RUN LLP (Reserve Unique Name) form needs to file for ascertaining availability and reservation of the name of the LLP. It is a web-based application form and where two names in order of preference can be filed with the business activities. The proposed name must be unique and should not be similar to an existing company or LLP name or a Trademark.

Step 4 – Filing of Incorporation

Once the name of the business is deemed as reserved by the Registrar of Companies, an application for registration of LLP along with the signed form & Documents is filed in FLIP Form on MCA portal followed by paying the prescribed fee. The Government fee for LLP Registration depends on the proposed capital of the LLP. On submission of the complete documents, the Registrar after satisfying will register the LLP and issue a certificate of incorporation.

Step 5 – Drafting and Filing of LLP Agreement

LLP Agreement is a written agreement between the LLP and its partners which determines the mutual rights, duties, obligation, capital contribution ratio, profit sharing ratio of the partners in relation to the limited liability partnership. After Incorporation of Limited Liability Partnership, the partners need to execute the same, followed by paying stamp duty and notarization. The copy of the agreement needs to file with the ROC within 30 days.

Step 6 – Filing for PAN Card and TAN Number

After Incorporation, LLP needs to make an application in the prescribed Form 49A & Form 49B to the income tax department for the allotment of PAN card & TAN Number. The acknowledgement of applications is generated on the same day and valid for opening of the current bank account of the LLP. However, the PAN number is allotted by the Income Tax Department and directly dispatched to the registered address of the LLP.

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FREQUENTLY ASKED QUESTIONS

What are the minimum requirements to be a Partner in LLP?

LLP shall have at least two designated partners (needs to be over 18 years) and must be a natural person, and at least one of them shall be a resident in India. [body corporate may become a partner in LLP]

Can an LLP incorporate for “Not-For-Profit” activities?

No, LLP can not incorporate for ‘Not-for-Profit’ activities.

What are the annual compliance requirements for an LLP?

LLPs have to submit only two statements, i.e. the Annual Return in form 11 & Statement of Accounts and Solvency in form 8 with the Registrar each year.

What is a Digital Signature Certificate?

A Digital Signature is a secure digital key that is issued by the certifying authorities to validate signing and certify the identity of the person electronically while filing documents in e-forms.

What is the Designated Partner Identification Number (DPIN)?

Designated Partner Identification Number (DPIN) is a unique identification number and allotted by the Ministry of corporate affairs to the person who wishes to appoint as a Designated Partners of a Limited Liability Partnership (LLP). DPIN never expires, and a person can have only one Designated Partner Identification Number.

What is an LLP Agreement?

LLP Agreement is a written agreement between the LLP and its partners which determines the mutual rights, duties, obligation, capital contribution ratio, profit sharing ratio of the partners in relation to the limited liability partnership. After Incorporation of Limited Liability Partnership, the partners need to execute the same and need to file a copy of the agreement with the ROC within 30 days. If, is not filed within prescribed, a penalty of Rs 100 is imposed for each day of delay.

Can an NRI or Foreign National become a Designated Partner in an LLP?

Yes, an NRI or Foreign National can become a Designated Partner in a Limited Liability Partnership after obtaining Designated Partner Identification Number.

Can a partnership firm be converted into LLP ?

Yes, a Partnership firm can be converted into LLP. Conversion requires a procedure that is molecular complex, expensive and time-consuming. Therefore, It is recommended to all entrepreneurs to consider and start as LLP or Company.

Can Virtual Office or Co-working office addresses be registered as an office of the LLP?

LLP needs a physical mailing address to register their businesses. A registered office address is required at the time of LLP incorporation and must be maintained by LLP. The limited liability partnership needs to maintain books of account and statutory records at its registered office. Hence it should be a lockable area. Authorised capital can be increased at any point of time in future by following necessary steps as prescribed in the Companies Act 2013.

What is the basic difference between a Partnership firm and Limited liability Partnership?

Partnership firm does not have a separate legal entity and partners of a partnership firm have unlimited liability and are personally liable for the losses and obligations of the partnership firm.
Besides, LLP has a separate legal entity and registered under the Limited Liability Partnership Act, 2008. The partners of an LLP are called Designated partners and have liability limited to the capital invested by them and are not personally liable for the liabilities of the business.