LLP refers to Limited Liability Partnership was introduced in India by way of 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. This is an Ideal business structure for Small and Medium sized Enterprises going for Partnership, LLP is one of the easiest forms of business to incorporate and manage in India. With an easy incorporation process and simple compliance formalities, LLP is preferred by Professionals, Micro and Small businesses that are family OWNED OR CLOSELY-HELD
In LLP, one of the most important benefits is that all partners are not responsible for the misconduct or negligence of another partner. In Limited Liability Partnership, the liabilities of the partners are limited up to their contribution to LLP; personal properties are not attached to settle creditors.
ADVANTAGES
1. Application of DSC & DPIN:
All the prospective Partners have to apply for Digital signature and DPIN. Digital signature is an online signature used for filing and DPIN refer to Partners Identification number issued by MCA. If the Partners already have DSC and DIN, then this step can be skipped.
2. Application for Name approval:
Up to 4 name options can be given in 1 RUN (Reserve Unique Name) name approval request. Provide maximum 4names in order of priority for your LLP name for approval of MCA of which one will be selected. Names provided should ideally be unique and suggestive of LLP business.
3. LLP AGREEMENT
LLP agreement is very important agreement in a LLP as it determines the mutual rights and duties amongst the partners, between the LLP and the partners and kind of byelaws for the LLP. Partners enter into the LLP agreement upon the LLP registration.
4. LLP INCORPORATION CERTIFICATE
Once the registrar approves your documents, the next step is to get the LLP Incorporation Certificate. It can be done by submitting all documents to the registrar. Incorporation certification is a proof that LLP has been created.
5. Apply for PAN, TAN and Bank account:
The moment LLP is incorporated, application for PAN & TAN needs to be made with NSDL. Then apply for PAN and TAN. Post this, for opening of bank account submit the Incorporation certificate, and PAN along with resolution with a bank to open your bank account.
COMPANY REGISTRATION PACKAGE INCLUDES
Our composite package price
Our composite package price for limited Liability Partnership registration from Rs.5999/- + Government and other statutory fees as per norms.
At least two partners are required for LLP registration. The maximum partners can be 2
Any individual, or even a company or a LLP, can become a partner. However, only an individual can become a ‘designated partner’ in a LLP.
A LLP agreement is one that is made between the partners and the LLP regarding the relationship between the individual partners in the LLP. A LLP agreement usually consists of management policies, inclusion of new partners, policy making strategies, and so on.
Yes, non-resident Indians and foreign nationals who are willing to enter into a LLP partnership can do so, provided they submit the necessary documents after getting it notarized by the concerned authorities. Although, at least one of the designated partners in a LLP should be an Indian national.
Yes, it is much cheaper to run a LLP than a private limited company, particularly in your early start-up days. This is because many compliances, such as an audit, apply to LLPs only after their turnover is sizeable. Most LLPs spend about half as much as a private limited company in their first year on registrations and compliance work.
Yes, you can register your LLP at your residential address. It is perfectly legal to start the company at your home or in your garage. MCA team typically doesn’t visit your office. You just have to provide your home address proof such as rent agreement or electricity bill
Yes, you as a salaried person can become a partner in a LLP. You need to check your employment agreement if that allows for such provisions. In most, cases employers are comfortable with the fact that their employee is a director in another company.
Stamp duty depends upon the state. It is different from state to state.
Stamp duty depends upon the state. It is different from state to state
No, LLP is formed for the business purpose and to earn profit. Therefore, LLP cannot be incorporated for Non-Profit activity
