LLP

LLP Registration in India has become an alternative form of business that provides the advantages of a Company and the flexibility of a Partnership firm into a single organization. The Concept of LLP in India was introduced back in 2008 by the Limited Liability Partnership Act of 2008. This unique hybrid is suitable for setting small, medium-sized businesses.

Why LLP ?

It is very easy to manage and incorporate a Limited Liability Partnership in India. To register an LLP minimum of two partners are required, there is no upper limit as such.The LLP agreement states the rights and the duties of the Partners. In an LLP one partner is not responsible for the misconduct and negligence of the other partner. The partners are responsible for the compliances and all the provisions that are specified in the LLP agreement.

LLP Registration

Limited Liability Partnership (LLP) combines the benefits of a partnership with that of a limited liability company. In India, it took shape after January 2009 and was an instant success with startups and professional services. The idea behind LLP was to provide a form of business that is easy to maintain and to help owners by providing them with limited liability.

Benefits of an LLP

Here are the major reasons why people prefer the structure of an LLP for their business structure:

Limited Liability

The members of an LLP are only liable for a small amount of debt incurred by it. On the other hand, for proprietorships and partnerships, the personal assets of directors and partners are not protected if the business goes bankrupt.

Separate Legal Entity

An LLP is a separate legal entity from the partners in it. It has an uninterrupted existence that follows perpetual succession, i.e., the partners might leave, but the business remains. The terms of dissolution have to be mutually agreed upon for the firm to dissolve.

Flexible Agreement

Transferring the ownership of an LLP is also simple. A person can easily be inducted as a designated partner and the ownership switches to them.

Suitable For Small Business

LLPs having a capital amount less than ₹25 lakhs and turnover below ₹40 lakhs per year do not require any formal audits. This makes registering as an LLP beneficial for small businesses and startups.

Documents Required for LLP Registration

To register an LLP you need scanned copies of the following documents:

From partners:

    • PAN card or passport (foreign nationals or NRIs)
    • Aadhar card/ voter’s ID/ passport/ driving license
    • Latest bank statement/ telephone bill/ mobile bill/ electricity bill/ gas bill
    • Passport-size photograph
    • Blank document with specimen signature.

Note: One partner must self-attest the first three documents. In the case of foreign nationals or NRIs, all the documents must be notarized (if currently in India or a non-commonwealth country) or apostilled (if from a commonwealth country).

For the registered office:

    • Utility bills
    • Notarized rental agreement in English
    • No-objection certificate from the property owner
    • Sale deed/property deed in English (in case of owned property).

How to Register a Company

You can register LLP online through Parekh Consultancy. While we make LLP registration a simple 3-step process for you, the actual registration process is elaborate and is explained below for your knowledge:

Step 1: Obtaining DSC And DIN

All the forms that need to be submitted online require the directors’ DSC. So, the first step in the process is to get DSCs and DINs for 2 partners. We collect the necessary information from you and file for them.

Step 2: Application For Name Approval

Simultaneously, we check if the name you want to register under is available and reserve it for your LLP. You can check for name availability in the MCA portal.

The approval of the name will be made by the registrar only if the central government does not deem it undesirable. The name should not hold any resemblance to any of the existing partnership firms, LLPs, trademarks, or body corporates.

Step 3: LLP Agreement

The next step is to draft the LLP agreement and other documents for registration. An LLP agreement is very crucial in a limited liability partnership as it determines the mutual rights and duties amongst the partners, and between the LLP and the partners. Thus, our experts take utmost care in drafting this agreement.

The partners enter into the LLP agreement upon registering the LLP by filing Form 3 online on the MCA portal. This procedure has to be done within 30 days of the date of incorporation.

Step 4: LLP Incorporation Certificate

Our team will file the necessary forms and documents with the registrar. Once the registrar approves all the forms and documents, you get your LLP incorporation certificate and are almost set for running your business.

Step 5: Apply for Your PAN, TAN, & Bank Account

As soon as you get the incorporation certificate, we will apply for the PAN, TAN, and bank account for your LLP.

Why Parekh Consultancy ?

Access To Experts
We are a team of reliable professionals dedicated to fulfill all your business setup requirements.

Realistic Expectations
By handling all the paperwork, we ensure a seamless interactive process with the government. We provide clarity on the incorporation process to set realistic expectations.

Young and Experienced Team
With a team of experienced business advisors and finance professionals, you are just a phone call away from the best in financial services.