Basic overview of LLP Registration
Use our quick, easy, simple, and fully online registration services to create your LLP within India. All you have to do is begin by taking advantage of our complete service that includes LLP registration online, which is available at the lowest prices, as well as a range of complimentary services we offer for LLP registration in India.
How do I register an LLP in India?
LLP registration for LLPs in India is extremely straightforward, simple, and easy by using our comprehensive package of LLP registration that is available to you at affordable costs. The services listed on our lists are supplied by our experienced and dedicated team of highly trained experts and skilled professionals. Furthermore, our experienced consultants assist you in every step, with no charge for any consultation.
What is the term "limited liability partnership"?
The limited liability partnership can be thought of as an improved version of the partnership firm, as it can overcome the weaknesses that the partnership firm has without changing the nature of business in its fundamentals. Some of the best features an LLP offers as compared to a partnership firm include a mandatory requirement for LLP registration using an entirely online procedure, a limit on liability for the owners, and no limit on the number of members. Furthermore, unlike the partners of the partnership firm, members of the LLP are not accountable for overseeing the running of their business. To do this, the partners must choose designated partners.
The most important decisions to be made before an LLP registration are LLP registration
- Proposed business venture?
- The ratio of capital sharing between partners?
- What is the ratio of profit-sharing between partners?
- Capitalization authorised by the LLP?
- Registered company address?
Benefits of LLPs registering in India
The limited liability partnership was introduced to overcome the flaws that a typical partnership firm is known to have. The features of the limited liability partnership closely match a limited company's characteristics, allowing it to provide many benefits to all its stakeholders, including its shareholders, investors, creditors, and partners. It is possible to refer to the table below to get complete details about all the benefits. Find out more about the benefits of LLP registration.
The liability of partners is limited to the conditions set out in the LLP agreement.
Attractive to investors
A clear legal identity for the LLC gives it credibility and makes it more appealing to investors.
Preferred by creditors
The banks and FIS prefer to lend money to companies certified by the government.
It's easy to incorporate.
A completely online procedure can incorporate an LLP in just a few days.
An LLP must not legally submit its annual financial statements and returns to the ROC.
Flexible to manage
An LLP is run according to the rules set out in an LLP agreement made by the partners.
How do I close a one-person company?
The term "one-person company" refers to the fact that a one-person company is a lawful creation that can be dissolved according to the same law that was formed, the Companies Act of 2013. To shut down an OPC, it is necessary to establish if it has been active or inactive for an extended period. Based on this information, we can choose the next step to decide on closing.
|Close of an inactive opc (striking-off by roc)
|The closing of an active company (winding up through NCL)
|To close an OPC that has been inactive for a long time after incorporation or during the last few years, an application may be submitted with the ROC on the form STK-2. In addition to the application, directors are required to provide affidavits stating the OPC's inactivity and indemnity bonds that acknowledge their responsibility to pay any dues that accrued after the OPC was struck off. Before submitting STK-2, ensure that the OPC is in good standing.
|An active business can be defined as operating business activities, conducting business transactions, and having liabilities and assets. To close the company, an appeal must be made to the act to wind up the company. The procedure is lengthy and can only be made easier with the help of a professional. Thus, get in touch with our startup experts to get the complete service of closing your business at the lowest cost.
|There have been no significant business transactions within the past year.
|Does not have assets or liabilities
|It has closed the account with its current bank.
Compliance for limited liability partnerships (LLP)
Compared to corporations, an LLP has a very low level of compliance, according to the LLP Act of 2008. But these compliances aren't just a matter of necessity. But it is also necessary to promote transparency and good governance and safeguard the interests of everyone involved, including ROC, partners, designated partners, investors, and tax departments. It is possible to divide these compliances into four categories: one-time post-incorporation, annual, event-based, and regular. We'll discuss the annual and one-time legal requirements for LLPs here. For more specific information on the other categories, contact our experienced startup advisors
Post-incorporation compliances and local registrations within a few hours of incorporation.
Regular compliance, for example, accounting and tax filing, as well as maintaining records and registers.
A system based on events:-
For example, the compliance form for director changes, a registered address, or the allotment of shares
At the close of the fiscal year, the financial statement is released, along with the site and the ROC annual return reporting.
In contrast to a corporation and a limited liability partnership, the limited liability partnership has just one obligation to fulfil within the first day of incorporation: submitting an LLP agreement to the ROC.
Filling in the LLP agreement:-
The LLP agreement is the constitutional document of an LLP and contains the terms and conditions mutually agreed upon by the partners. The agreement is written on stamp paper, which the entire membership of the LLP signs and then has notarized and stamped by a notary public. The agreement does not have to be filed with the ROC when incorporating. But, within 30 days from the incorporation date, the LLP agreement must be filed with the ROC in e-form 3.
A yearly compliance
|Roc yearly reports (form 11)
|The annual returns for the year in question will be submitted by May 30 of the following financial year. If the yearly total turnover for the LLP exceeds Rs. 5 million or the capital contributions are Rs. 50 lakhs during the financial year, then the returns for the year have to be endorsed by a practising company secretary.
|Form 8 financial reports (form 8)
|The financial statements for an individual year are submitted by October 30 of the following financial year. The financial statements are required to be reviewed by a practising chartered accountant only for financial years when the total annual revenue exceeds Rs. 40 lakhs or when the contribution to capital is greater than Rs. 25 lakhs.
|Form for statement of solvency (form 8)
|The statement of solvency for the particular year is due by the 30th day of the financial year following.
|Tax returns for income
|It is expected that the income tax return from the year in question will be submitted on or before July 31st of the following financial year, if tax audits aren't applicable. If a tax audit is required, it must be filed by the 30th of September.
List of Documents Required for LLP Registration
The required documents to be submitted for LLP registration can be classified as documents for all the partners. They can be classified into those of the designated partner of the registered business address and any other legal draughts. Below are the documents required to be submitted for an LLP application in India. Failure to submit all these documents may result in the denial of the LLP registration form.
A. The documents of all partners
- Passport-size colour photographs
- Identity Documentation: (any one document)
- Address Documentation: (any one document)
- Bank statements that are not more than 2 months
B. Documents for a Registered Business Address
- Water Bill: not more than 2 months
- Absolutely No Opinion Certificate (NOC) by the Owner
- Notarized and stamped rent agreement
C. Legal Draughts
- Stamped and notarized LLP deed
- Subscriber Sheet for LLC Incorporation
- Questionnaire for LLP Registration
For small firms, what are the advantages of an LLP?
An LLP is the best type of business for small-scale businesses in India since there are fewer regulations to adhere to. In contrast to the company, auditing the account records of an LLP is not required until the turnover reaches the threshold of 40 lacs and the total capital is 25 lacs.
I'm conveying business as a sole owner or organisation; I can enrol in a restricted risk organisation.
Indeed, you can enlist as an LLP or convert your current association or ownership organisation into an LLP. Costs for conversion are significantly higher than those for LLP applications in India.
Does the LLP structure work for my company?
As we mentioned before, the choice of whether or not to use an LLP for one of the different types of businesses is dependent on several variables such as the number of owners, the amount of capital, the mode and size of operations, the purpose of the business, etc. We suggest that, for entrepreneurs, you examine all the advantages and drawbacks of the LLP type of business to assess its suitability for your company after taking into consideration the above-mentioned factors. If you're struggling to make a clear choice on this issue, it is possible to get help from our legal experts. We invite you to fill out our "Request a Callback" form, and we'll be prompt.
What does DPIN mean? (Designated Partner Identification Number)?
The DPIN for designated partners of an LLP is the equivalent of the DIN for directors in a corporation. It is equal to DIN for directors in a company. DPIN is a specific number that is assigned to the Ministry of Corporate Affairs for the person who is likely to be designated as a designated partner in the LLP soon. To be eligible for DPIN allocation, the application must be submitted to the MCA with a colour photo, identification proof, and a document proving the address of registration of the applicant. The address must be certified by the individual applying. The application must be verified by an independently working CA, CS, or advocate.
What exactly is an LLP Identification Number (LLPIN)?
LLPIN is a unique number that is assigned to the LLP to identify it by the Registrar of Companies. The allotment of LLPIN is done following the LLP registration and appears as a part of the Certificate of LLP Registration as well.
Minimum Requirement and the Checklist for Limited Liability Partnership
To register as an LLP in India, the first step is to fulfil certain conditions regarding the number of partners, the number of designated partners, as well as the name, address, and capitalization of the business. Below is a list of the essential requirements to be met for LLP incorporation in India.
- Checklist for registration of LLPs on the internet in India
- At a minimum, two partners
- At least two partners with whom you have been designated
- A minimum of one designated partner who is an Indian resident
- Registered business addresses
- A distinctive and valid name for a business
- Some capital investment in the business
The Stepwise Procedure of LLP Registration
The procedure to apply for LLP registration in India is incredibly simple and straightforward if you take advantage of our services by signing up for our comprehensive packages. All you need to do is provide the information requested in our online questionnaire and send us all required documents, including the DSC of the person applying. The procedure we follow for LLP registration is entirely online and can be completed in minimal time. We have detailed the step-by-step procedure for the LLP application below.
Step 1: Documents for LLP Registration
The procedure of LLP registration begins with the preparation of all the required documents for the partners as well as designated partners, a business address registered with the company, and the LLP deed. It is your responsibility to submit all necessary documents to us before we begin our process for LLP enrollment for you. Check that your documents are current and correct. Complete a survey online and provide the necessary information.
Step 2: Choosing a Name for the LLP
An LLP's name should not be the same as the name of a company, an LLP, an application, or a registered trademark. You can verify the validity of the name you wish to use on the database for LLPs as well as companies or on the list of registered and used trademarks, which is available through the sites of MCA and IP India, respectively. Use your rules to choose a suitable title for your LLP.
Step 3: Finding the DSC for the candidate
The procedure for registering an LLP is entirely online. The form to apply for LLP registration must be completed online. The supporting documents required are uploaded with it, and the form is signed by the digital signature of the designated partner of the applicant. It is also possible to sign up with us to get a DSC.
Step 4: Name Approval for LLP Registration
Once you've selected the correct title for the LLP, it is now time to secure it by using the RUN application that is available through the MCA website. It is possible to submit two names for each application and have two opportunities for renewal if your first two names are invalidated. The cost for RUN applications is Rs. 1000.
Step 5: Fill out and return the FiLLiP Form.
The FiLLiP form is the one that must be completed and sent by the Registrar of Companies for LLP registration in India. The form must be signed by a named partner in the LLP with the DSC and completed with all required documents needed to be submitted for LLP registration. The form is also uploaded. The fee for an application depends on the capital authorised by the LLP.
Step 6: Issue of the Certificate of LLP Registration Certificate for LLP registration
Once the FiLLiP application is presented to the ROC The ROC scrutinises and validates the form thoroughly. After he has been satisfied with the information provided when submitting the request to register an LLP, he will take the next step and issue the certificate for LLP registration. Along with the certificate, the ROC also assigns an identification number for the registered LLP.
Step 7: Drafting the LLP Agreement and Filing with the ROC
After LLP registration, the partners have to sign an official LLP deed and then draught the same on the stamped paper. The deed outlines the shared rights and obligations that the partners share. It must be executed by all partners in front of a notary, who will stamp the deed. The deed will be recorded along with the ROC in Form 3 within 30 days of the date on which the Certificate of LLP Registration was issued.
Step 8. PAN Card and the TAN Number of the LLP
The PAN and the TAN of the LLP are available on both forms, 49 A and B, under the Income Tax Act. The forms PAN and TAN are assigned through the Income Tax Department of India. While PAN is required to pay taxes on income, TAN is required to get the right to deduct tax and collect at the source.