The word LLP holds immense significance in the corporate world and refers to Limited Liability Partnership LLP registration in India which differs from Private Limited Company and General Partnership in terms of liability, protection and cost.
Registering a Company is quick, easy, and can be done online with QuickTaxperts in 3 simple steps:
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We help you pick the right company name.
We draft and file the documents required for your company registration (MoA and AoA).
LLP Registration is a popular and well-known business structure in the world. Both LLP and Private Limited companies are registered with the Ministry of Corporate affairs under the Central Government. Get your LLP registered & process of registration as LLP with Quick Taxperts.
Limited Liability Partnership or LLP is a type of partnership firm and one of the most chosen types of business by the entrepreneur. With the benefit of limited liability, LLP is the easiest form of business structure. Limited Liability Partnership registration in India gives complete freedom to partners to form a partnership business structure in which the liability of each member or partner is limited to the sum of money they lend into the business. To make it clear, if the partnership fails in this business structure, creditors or investors cannot demand the partner’s personal assets or property or income.
Limited Liability Partnership or LLP is a type of business with more extra benefits when compared to a partnership firm. This type provides liability in partnership firm to its partners at a very low abidance cost. Moreover, the Partners of the online LLP registration in India can form their internal business structure similar to a partnership firm.
To be short, LLP registration in India is also considered as a separate legal entity from its members as it holds the power to extend all its property or assets keeping the liabilities of partners limited. Therefore, a Limited Liability Partnership or LLP is a hybrid of both company and a partnership firm.
Under an LLP or Limited Liability Partnership, the partners hold their liability limited to the amount of of his/her contribution to the entity. This is the most important feature of LLP as all the personal assets of its partners are safe and there is no need to pay the losses or debt of the LLP firm. Alongside, when LLP or Limited Liability Partnership entity itself commits a wrong deed or another partner commits a wrong deed, it is not right to hold the innocent partners up for this and charging them with the same. Hence, it is an important point that the partners liability will be limited to his or her contribution.
An LLP enjoy the benefits of a separate legal entity standing. A basic meaning of this is that the entity registered as an LLP can own assets in its own name. And it also holds the benefit to sue and can be sued as well. Additionally, as discussed in the above point a partners liability shall be limited to his or her contribution protecting him or her from any cost arising out of other partners misconduct or negligence.
In an LLP, the partners hold the freedom and flexibility to draft the LLP agreement as they deems fit as the Act or RoC or MCA The partners of LLP registration firm are free to prepare and draft the agreement as they need. But it should properly consider and regard the rules and regulations or rights and duties.
A Limited Liability Partnership firm is an easier and simply adoptable legal structure available. In case of an LLP or Limited Liability Partnership firm, the partners are the one who not only own the business but also manage and run the same. An LLP is different from a private limited company, as its directors may be different from shareholders. Keeping this as a due point, we can see that the angel investors and Venture capitalists does not provide credit, or invest or fund businesses registered as LLP’s.
A Limited Liability Partnership firm is a less complicated, cheap, easy and lowerl budgeted business which can also be run in a imple manner when compared to a private limited company. One major reason for this is that it requires 3 compliances every year. But in the case of a private limited company, it should hold a lot of compliances to fulfill the provision and have to conduct an audit regularly.
Not only is it easy to start a Limited Liability Partnership firm, but it’s also easier to wind-up when compared to a private limited company. Generally, it takes two to three months to complete the winding-up process, whereas it can take more than a year to close a private limited company.
Decide on the Partners: LLP requires a minimum of two designated partners who will be responsible for the legal compliances of the LLP.
Select a Suitable Name: Check for the availability of the desired name and ensure it complies with the LLP naming guidelines.
Obtain DSC: All designated partners must obtain a Digital Signature Certificate (DSC) for filing documents online
Obtain DIN: The designated partners must obtain a Director Identification Number (DIN) from the Ministry of Corporate Affairs (MCA)
File LLP Agreement: Draft an LLP agreement, which includes details such as partners’ contribution, profit-sharing ratio, etc., and file it with the Registrar of Companies (ROC)
Obtain PAN and TAN: Apply for PAN and TAN for the LLP.
File Form For Llp Incorporation: File Form FiLLiP (Form for incorporation of LLP) with the Registrar of Companies (ROC), along with the required documents.
Register for GST: Register the LLP for GST if the turnover is above the threshold limit.
Register For Other Taxes: Register the LLP for other taxes such as Professional Tax, Import Export Code, etc., as per business requirements.
Obtain Necessary Licenses: Obtain necessary licenses such as FSSAI, Trademark registration, etc., as per business requirements.
Maintain Compliance: Comply with the ongoing statutory requirements such as filing of annual returns, audit, etc.
Our package covers everything you need for LLP incorporation online and get it business-ready
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The Registrar of Companies (ROC) across India expects applicants to follow a few naming guidelines. Some of them are subjective, which means that approval can depend on the opinion of the officer handling your application. However, the more closely you follow the rules listed below, the better your chances of approval. First, however, do ensure that your name is available.
If you have all the documents in order, it will take no longer than 15 days. However, this is dependent on the workload of the registrar.
No, company formation in India is a fully online process. As all documents are filed electronically, you would not need to be physically present at all. You would need to send us scanned copies of all the required documents & forms.
All directors must provide identity and address proof, as well as a copy of the PAN card (for Indian nationals) and passport (for foreign nationals). No-objection certificate must be submitted by the owner of the registered office premises.
Yes, so long as the annual compliances are met, the private limited company will continue to exist. If you do not comply with the requirements, it will go dormant, until it is struck off the register altogether.
Yes, a private limited company must hire an auditor, no matter what its revenues are. In fact, an auditor must be appointed within 30 days of incorporation. Compliance is important with a private limited company, given that penalties for non-compliance can run into lakhs of rupees and even lead to the blacklisting of directors.
These documents contain the rules, vision and mission of your organisation, and define, among other things, the exact business and the roles and responsibilities of shareholders and directors.
Yes, a minimum of two directors are needed for a private limited company. The maximum members can be 200. You can register as a one person company, if you are the sole owner of the company.
There is no minimum capital required for starting a private limited company.
Yes, a salaried person can become the director in a private limited, LLP or OPC private limited company. One needs to check the employment agreement if that allows for such provisions. In a lot of cases, the employers are quite comfortable with the fact that their employee is a director in another company.
No, one cannot convert an LLP into a private limited company as it is not a MCA. The Limited Liability Partnership Act, 2008 and the Companies Act, 2013, both don’t have any provisions on conversion of the LLP in a private limited company. However, if one wants to expand their business they can register a new private limited company with the same name. The LLP company needs to just issue a no objection certificate.
Vakilsearch can integrate a private limited company in 14-15 days. The time taken also depends on the relevant documents provided by the applicant and the speed of approvals from the government. To ensure a speedy registration, kindly pick a unique name as the proposed company name and also ensure that you have all the required documents prior to the starting of the registration process.
Yes, the company can be registered at the owner's home address. A copy of the utility bill is required to be submitted.
Yes, it is good to register a family member as a partner. At a later stage one can change this or transfer shares of the directors.
Yes, a NRI or a foreign national can become a director of a private limited company. He or she must obtain a DIN from the Indian RoC. They can also hold a controlling stake in the company. As long as at least one director on the board of directors is an Indian resident.
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