LLP Registration In 10 days.
From Anywhere.At a Single Click
- DSC of 2 Partners
- DPIN for 2 Partners
- Name Reservation for LLP registration
- Partnership Deed Drafting
- TLLP Identification Number
- PAN & TAN
- Bank Account Opening template
- Limited Liability:
The liability of all the partners is limited in an LLP. The personal assets of the partners will not be confiscated to pay the losses incurred by the company. Limited liability also means that the partner is immune to the consequences that arise as a result of the wrongdoings of other partners.
- No minimum capital requirement:
There is no minimum capital requirement for incorporating an LLP.
- No audit requirement:
There is no requirement for an audit in case of LLP's unless the annual turnover crosses the limit of 40 lakhs INR or the capital contribution exceeds 25 lakhs INR.
- Easy transfer of ownership:
There is a facility for easy transfer of ownership in an LLP. Unlike, the traditional partnership, the introduction of a new partner does not affect its existence.
- Separate legal entity:
An LLP is a separate legal entity in its capacity. It follows the principle of perpetual succession. The addition of a new partner or an exit of existing one does not dissolve its existence. Additionally, the assets of the business are not owned by the partners.
- Step 1:Apply for Digital Signature Certificate (DSC)
- Step 2: Name approval
- Step 3: Filing of Incorporation Application
- Step 4-File Limited Liability Partnership Agreement
- Step 5-File PAN Application
The LLP registration process starts with the application to obtain DSC for all Proposed Designated Partners. These digital signatures (DSC) will be taken in use to file the LLP registration, ROC compliance forms, and Tax returns.
File for Name Approval form to ROC through LLP RUN (Reserve Unique Name) facility available on the MCA portal. Maximum two names can be applied through this method. It takes a maximum of three working days to get name approval from the Registrar of LLP.
After successful name approval of the LLP, incorporating application is required to be filed in e-Form FiLLiP. Fees for LLP registration is mentioned at the MCA website. The Incorporation application consists details of the proposed designated Partners and all the supporting documents as attachments. It is filed with the registrar who has jurisdiction over the state in which the registered office of the LLP is situated.
An applicant is required to submit a duly notarized partnership agreement in Form-3 on the MCA portal within 30 days of incorporation.This step is taken after the completion of LLP registration and receipt of Certificate of Registration from MCA.
As the LLP registration procedure is completed, the applicants need to file the PAN Application for the newly registered LLP and provide with all the details and relevant documents.
a. Post-Incorporation Compliances
Once Limited Liability partnership registration is completed the newly incorporated LLP is required to complete following compliances. These compliances are one time in nature and are not repetitive.
Partnership Agreement Filing
LLP registration in India is confirmed once incorporation form is approved by the MCA. However, the registration process does not end here.
The partners are required to register the partnership agreement in Form-3. This filing has to be executed within 30 days from the date of LLP registration.
Apply for PAN & TAN
Along with MCA related filing, the LLP is also required to apply for PAN and TAN. This is as important as, without the issuance of PAN, the bank account cannot be opened.
Open Bank Account
Open LLP’s Bank Account to start a financial transaction.
b. Annual Compliances Requirements after the LLP Registration
After the completion of the formation process, LLP is required to comply with the annual compliance requirements. These compliances are mandatory to meet irrespective of the fact that they have started a business or not. If the number of transactions after the LLP registration is zero, then LLP will file NIL return.
Following returns are required to be filed:
Statement of Account & Solvency
Statement of Account & Solvency is required to be filed in LLP Form 8. This return is required to be filed by 30th October of each financial year.
This document is required to be certified by a practicing professional including a chartered accountant, company secretary or cost accountant.
LLP Annual Return
Annual Return is required to be filed with the Registrar of companies in LLP Form-11. The due date for this return is set on 30th May of each year i.e. within 60 days from the closing of every financial year.
Income Tax Return
Income Tax Return filing is another mandatory annual compliance requirement. After LLP registration every LLP is required to submit their income tax return by 30th September every year. LLP’s income tax return is submitted in prescribed Form ITR 5.
In the case of MCA Filing
According to Limited liability partnership Act 2008, it is mandatory to file all the prescribed compliance annually. There is a provision for penalty in case of any failure in filing Form 8 and Form 11 for reporting LLP’s financial statements and annual return.
A fixed amount of Rs. 100 per day for each compliance that is not filed. No maximum limit is specified.
In the case of Income Tax Return Filings
Every registered LLP is required to do income tax return filing under Income Tax Act along with annual filing. This filing should be done by 30th September every year.
In case after LLP registration, any LLP fails to meet this deadline then a penalty of Rs. 5,000 is imposed on it and filing is to be completed by 31st December of that year.
If the LLP fails to meet even the extended deadline, then the penalty amount will double up to Rs. 10,000.
Minimum of two designated partners:
Minimum of two designated partners is necessary for LLP registration. However, there is no limit for the maximum number of partners (Partners can be either Individual or Body Corporate).
One Indian Partner:
Minimum one Designated Partner must be an Indian resident.
DPIN (Designated Partners Identification Number) for all Designated Partners.
DSC (Digital Signature Certificate) for all the Designated Partners.
DSC (Digital Signature Certificate) for all the Designated Partners.
LLP is a separate legal entity, liable to the full extent of its assets; the liability of the partners would be limited to their agreed contribution in the LLP. Further, no partner would be liable on account of the independent or un-authorized actions of other partners, thus allowing individual partners to be shielded from joint liability created by another partner’s wrongful business decisions or misconduct.Creating an LLP is a good way to protect your personal assets from your company’s liabilities, offering protection for your personal assets in the event of a failure. For this reason, forming an LLP is a much secure solution for many small owners than a sole proprietorship or a general partnership.
LLP registration in India is 100% online process. No need to be present physically to our office or ministry of corporate affairs. We will send our person to your home or office for document signature.
Any individual, company or foreign national can be a partner in an LLP.
LLP Agreement defines the internal constitution of the partnership, overall mission, vision, business objectives of the organization firm in log run.
No. you do need not hire a full-time CA or CS. We will offer your annual compliance package through you will get the right advice from our team.
Usually, we register an LLP in maximum 10 business days.
Per companies act, LLP Name should be unique, and business objectives should be added with the name. Also, do care that business name and legal should be different.
According to the LLP Act 2008, a minimum of two designated partners is required to register an LLP. The designated partners are responsible for the overall operations of the firm.
The professionals like CAs, CS, Advocates, engineers, doctors prefer to register an LLPs. The Conversion of LLP to a private limited company is tough. In an LLP Venture funding is almost impossible.
LLP has 1/3 annual maintenance cost than a private limited company. Typically you can manage your LLP in just Rs. 12,000 in a year.
Nonsubmission of Partnership Agreement with MCA within 30 days of successful LLP registration has a two-fold effect: Firstly, the registered LLP will be liable to pay a penalty of Rs. 100 per day of default. And there is no specified upper limit for the penalty amount. Secondly, in case of non-filing of partnership agreement mutual rights and liabilities of the Designated Partners and Partners will be as dictated in Schedule I of LLP Act, 2008.
No, FDI can be received free of any performance linked conditions. an example of such performance linked conditions is foreign remittance to NGOs.
On the case of LLP partner is a general term. Any no. of people can be appointed as a partner but at least 2 people must be named as a designated partner. Designated partners are responsible for doing all the necessary act and make sure that all the provisions are adhered to and compliances are done on time. In case of any default, such designated partners are liable to pay off penalties imposed on LLPs.
Designated partners must be individuals. Thus, in case all the partners are corporate bodies atleast 2 such partners must appoint their authorized representatives as designated partners to the LLP.
Whatever partners to an LLP contribute to it to run the business is termed as a contribution. Contribution can be in the form of any of the following:
- Promissory notes
- Tangible or Intangible Property
- Movable or immovable property etc.