Limited Liability Partnership Online Process
Limited Liability Partnership is are typically used by professional service firms such as law firms, accounting firms, and consulting firms. They are also popular among real estate partnerships and investment funds. In an LLP, the partners have more flexibility in managing the business than they would in a corporation, and they are taxed like a partnership.
The key feature of an LLP is that each partner is not responsible for the actions of the other partners. This means that if one partner makes a mistake or incurs a liability, the other partners will not be personally responsible for that partner’s actions. Additionally, each partner is free to manage the business and participate in its day-to-day operations.
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Limited Liability Partnership registration starting from Rs.7,000/-
Limited Liability Partnership Registration
Limited Liability Partnership Registration is a hybrid of existing partnership firms and full-fledged companies. It is a separate legal entity, liable to the full extent of its assets with the liability of the partners being limited to their agreed contribution in the firm.
Limited Liability Partnership Registration (LLP) features:
- Just require two entrepreneurs.
- More credibility than partnership Firm.
- Limited Liability is the main feature.
- Partnership Firm’s Next Version in Simply Words.
Basic Features to Read before starting Limited Liability Partnership
Day Wise Working Process :
1.Name reservation application through RUN based facility.
2.Application for Digital Signature Certificate.
1.Drafting of required documents for Incorporation of LLP.
1.Getting Name approval from MCA.
2.Filing of Incorporation of LLP Form FiLLiP.
1.Drafting of LLP Agreement.
1.Filing of LLP Agreement in Form 3.
2.Getting Approval of LLP from ROC.
Advantage of Limited Liability Partnership Registration:
Because an LLP can enter into a contractual relationship in its own capacity, it offers a great advantage to the partners for limiting their personal risk. Liability of financial contribution of any partner is restricted to the capital contribution as per the LLP agreement. Many new age businesses prefer LLP registration over partnership so that their personal assets remain safe in case of loss, or even insolvency. Further, one partner is not held responsible for the actions of negligence or misconduct of any other partner.
LLP Agreement, deed among partners of an LLP, clarifies operating structure including rights and responsibilities of the partners. Typically, LLP would select a “Designated Member” who would control day-to-day operations. It can have individuals or existing businesses as members. Further, this structure allows to clearly define roles of the partners and their respective responsibilities. It could also help in protecting partner’s interest in case of loss because of an unlawful act of any other partner.
Registration of LLP creates a separate legal identity than its partners. Governed by the LLP Act of 2008, it allows the business to contract with other entities, take legal action, own assets and borrow funds in the name of an LLP itself. It is a major advantage that is not available to a regular partnership firm.
A key benefit of registering an LLP over a private company is lesser compliance requirement. It doesn’t have a mandatory audit requirement until a certain level of turnover or contribution. Unlike companies, compliances related to board meetings, statutory meetings, etc. do not apply to LLPs. Professional services for compliance are typically available at cheaper rates than that for companies, making it cost effective to maintain an LLP.
Disadvantages of Limited Liability Partnership Registration:
An LLP must have at least two members as per the law. If any member want to leave LLP, then it will be dissolved automatically. This can delay the normal business operations in case of inability of a member.
An LLP is taxable at 30%. Surcharge is also levied on income tax amount at following rates if total income exceeds specified limits i.e. 12% if taxable income is more than Rs. 1 crore.
It is alsoan challenging task to transfer the ownership of any partner. If partners want to transfer the rights will need written consent from all the partners of an LLP. This transfer process cannot proceed further if any partner raise objection.
- Form 11:
File Form 11 that is a statement of annual return. Every LLP is required to file this form to the Registrar within 60 daysfrom the end of financial year i.e. on or before 30 May every year.
- Form 8:
File Form 8 that is a statement of accounts. This Form is to be filled to the registrar within 30 days after completion of six months of financial year i.e. 30 October every year.
How to Incorporate the LLP:
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Documents required for Limited Liability Partnership Registration :
- PAN CardPAN Card of Partners.
- Identity ProofAadhar card and Voter ID/ Passport/ Driving License of Partners.
- Address ProofLatest Telephone Bill /Electricity Bill/ Bank Account Statement of Partners.
- PhotographLatest Passport size photograph of Partners.
- Business Address ProofLatest Electricity Bill/ Telephone Bill of the registered office address
- NOC from ownerNo Objection Certificate to be obtained from the owner(s) of registered office
- Rent AgreementRent Agreement of the registered office should be provided if any.
- Consent LetterConsent Letter for appointing as Designated Partner/Partner in LLP.
Frequently asked questions on LLP
1.Difference between partnership and LLP?
Ans. As per section 2(71) of Companies Act,2013 public company means a company which is not a private company.
2.What is the benefits of LLP?
Ans. In LLP there is no formality like other companies, it is easy to incorporate.
3.How many partners are required to incorporate a LLP?
Ans. In LLP there is minimum 2 partners and there is no limits of maximum partners.
4.How much capital is required to start a LLP?
Ans. In LLP the minimum capital IS 1 Lakh to 5 Lakhs required to start a LLP
5.What are the requirements to enter into LLP?
Ans. A partner should be an Indian citizen. Minimum age to become a partner is 18. There is minimum 2 partners to start a LLP.
6.Is the outsider can invest in LLP?
Ans. In LLP no outsider can invest in LLP.
7.Is there necessary to a partner of LLP to an Indian citizen?
Ans. No, it is not necessary to a partner of LLP to an Indian citizen.
8.Limits of partners to invest in LLP
Ans. There is no limit of partners to invest in LLP.
ONE YEAR PACKAGE FOR LLP
Limited Liability Partnership registration starting from Rs.7,000/-
Note for LLP Registration
- Above fees are based on LLP turnover upto Rs. 25 Lacs.
- Above prices is illustrative in nature and it will be very depends on the nature of business and number of transactions of business.
- Audit fees Charges will be applicable as the case may be in accordance of statutory law.
Following registered persons not required to file GSTR 1, 2 and 3 such as:
Goods and Services Tax (GST) is an indirect tax applicable on the supply of goods and services. It is a comprehensive, multistage, destination based tax. It has subsumed almost all the indirect taxes except a few state taxes. It is collected from point of consumption and not point of origin like previous taxes.
Documents attach in trademark application:-
A trademark can be registered by the Controller General of Patents Designs and Trademarks, Ministry of Commerce and Industry, Government of India under Trademark Act, 1999 to protect the identity of any goods and services.
Some basic information about Income tax
An income tax is a tax imposed on individuals or entities commonly known as taxpayers that varies with respective income or profits. Income tax generally is computed on taxable income which is calculated after various deductions. Taxation rates may vary by type or characteristics of the taxpayer.
Basic Features to Read before starting private limited company
Private company is required to add the word “Private limited” or “Pvt. Ltd.” to end of its name. Private company should have at least two member and two directors. Private company have right to issue debentures to any number of persons.
Features of Public Limited Company
MCA provides the facility for incorporation of public limited company. For incorporation, firstly apply for name through RUN (Reserve Unique Name) on MCA portal. After availability of name from ROC we should file incorporation form i.e. Spice 32, INC 33(for eMOA), INC 34(for eAOA), .