Legal Suvidha is at your service,  09599937963

message on whatsapp
Limited ltd Company Registration in Chandigarh | llp registration in Gurgao | llp incorporation in Pune | legalsuvidha

REGISTER LIMITED LIABILITY PARTNERSHIP


Ideal Business structure for Starting a Professional Services Firm.

Starting at : ₹6999 (all inclusive)

Contact Now !

LIMITED LIABILITY PARTNERSHIP

Limited Liability Partnership

Limited Liability Partnership (LLP), introduced only in 2008, has quickly become a popular legal structure for businesses. As its name suggests, the liability of its partners is limited unlike partnership firm along with the requirement of minimal maintenance. So, in case of any default, assets in the name of LLP are liable & not the personal assets of the directors. A Limited Liability Partnership combines the advantages of both the Company and Partnership into a single form of organization and one partner is not responsible or liable for another partner's misconduct or negligence.

LLP is governed by Limited Liability Partnership Act, 2008. The LLP is also cheaper and easy to incorporate and manage and involves less compliance and can be a smart choice from a tax perspective. However, if one is looking to raise venture capital or attract talent with employee stock options, then the LLP is not your cup of tea since the investors are mostly expected to take up some percentage of the profit shares from the company and one doesn’t have the option of generating equity in an LLP. This is why they are most popular with professional services firms (web designers or architects, for example) that require no equity funding. LLPs are ideal for startups and small businesses that are just starting their operations and want to have minimal regulatory compliance related formalities. So, before going for LLP following points must be kept in mind:

• Requires minimum 2 partners but no upper limit.
• Minimum 2 designated partners one of whom should be an Indian Resident.
• Rights & duties of the designated partners are governed by LLP Agreement.



           
         


Why to Register LLP ?



LIMITED LIABILITY PROTECTION Businesses often need to borrow money. In a General Partnership, partners are personally liable for all this debt. So if it cannot be repaid by the business, the partners would have to sell their personal possessions to do so. In an LLP, only the amount invested in starting the business would be lost; all personal property would be safe.
BETTER IMAGE AND CREDIBILITY IN MARKET Limited Liability Partnership (LLP) is a popular and well known business structure in the world. Corporate Customers, Vendors and Govt. Agencies prefer to deal with LLP instead of proprietorship or normal partnerships.
NO AUDIT REQUIREMENT AND MINIMAL COMPLIANCES LLP is easy to manage and statutory audit is not required for Limited Liability Partnership. LLP is most ideal for small enterprises.An LLP only requires audited annual returns to be filed if it has a turnover of greater than Rs. 40 lakh or capital contribution of over Rs. 25 lakh.
TAX ADVANTAGES There are some important advantages over the private limited company. For example, Dividend Distribution Tax and tax surcharge don't apply. Loans to partners are also not taxable as income.
SEPERATE LEGAL ENTITY A LLP is a legal entity and a juristic person established under the Act. Therefore a LLP form of organization has wide legal capacity and can own property and also incur debts. The Partners of a LLP have no liability to the creditors of a LLP for such debts.
PERPETUAL SUCCESSION A LLP has 'perpetual succession', that is continued or uninterrupted existence until it is legally dissolved. A LLP, being a separate legal person, is unaffected by the death or other departure of any Partner but continues to be in existence irrespective of the changes in Partnership.
EASY TRANSFERABILITY The ownership of a LLP can be easily transferred to another person by inducting them as a Designated Partner of the LLP. LLP is a separate legal entity separate from its Managing Partners, so by changing the Managing Partners, the ownership of the LLP can be changed.
OWN PROPERTY Since, LLP is a separate legal entity from its partners, it can own property in its own name. So, no partner can claim any right over that property.
INCORPORATION COST The incorporation cost of an LLP is low as compared to company as the procedure for incorporating an LLP is less difficult.
MINIMUM CAPITAL REQUIREMENT There is no minimum capital requirement for forming an LLP making it a feasible option for startups & Small businesses.


           
         


Process of Incorporation of LLP




1
Obtaining DSC & DIN
2
Name Approval
3
LLP Incorporation
4
Courier












Digital Signature Certificate(DSC) and Designated Partner Identification Number(DPIN) is required for the proposed Partners of the LLP. DPIN and DSC can be obtained for the proposed Partners within 5 to 7 days.

    



Documents Required for LLP Incorporation




For Partners

1. Self Attested PAN Card copy

2. Self Attested copy of any one of the Identity Proof(Voter's ID/Passport/Driver's License)

3. Self Attested copy of Address Proof in the name of director (Any utility bill i.e., mobile bill/water bill/ electricity bill, or bank statement which should not be older than two months)

4. Passport-sized photograph

For The Registered Office

1. Rent Agreement (Notarised: For rented property)


2. Sale Deed/Property Deed in English (in case of owned property)


3. No-objection Certificate from property owner


4. Latest Electricity Bill / Mobile or Telephone Bill / Latest Bank Statement/Gas Bill

           
         

Frequently Asked Questions





What is the eligibility of designated partner/partners in an LLP?
Any individual, or even a company or an LLP, can become a partner. However, only an individual can become a ‘designated partner’ in an LLP.

Can an NRI start a LLP business in India?
Yes, non-resident Indians and foreign nationals who are willing to enter into an 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 an LLP should be an Indian national.

What are the rules for starting an LLP?
Any group of persons who have or want to invest money in a business can start an LLP. A person or an investor becomes a partner, according to the LLP agreement, as provided in the Act of 2008. Also, the investors/partners are owners of the business started under the LLP.

What is an LLP agreement?
An LLP agreement is one that is made between the partners and the LLP regarding the relationship between the individual partners in the LLP. An LLP agreement usually consists of management policies, inclusion of new partners and policy making strategies.

What is the minimum number of partners required to start an LLP?
According to the LLP Act, a minimum of two designated partners are required to start an LLP. The designated partners are responsible for fulfilling all the essential requirements involved in starting and running an LLP.

What kind of startups commonly register LLPs?
Typically, only start-ups that will not be looking for venture capital funding register LLPs. This is because venture capitalists only invest in private and public limited companies.

Is it cheaper to run an LLP than a Private limited company?
Yes, it is much cheaper to run an 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.

Who is responsible for misconduct or negligence in LLP?
A Partner who has done any misconduct is responsible for his own act, not the other partners.

What is (DPIN) Designated Partnership Identification Number?
The Unique Number is required to allot to an Individual which remains valid for whole life of the individual and is required to become Partner of any LLP.

How to file LLP Agreement?
An LLP agreement is filed in Form 3

How much minimum capital required to incorporate LLP?
No minimum capital is required for incorporation of LLP.

What is the maximum limit of partners to form a LLP?
In case of Partnership firm, maximum 20 partners are permitted but for LLP there is no maximum number of partners.

Can an LLP be created for non profit activities?
No, an LLP can't be incorporated for Non-profit activities.

What are the annual compliance required for LLP?
An LLP is required to file annual return and Statement of Accounts and Solvency as a part of annual compliance.

Can an existing partnership firm or company be converted into LLP?
Yes, an existing partnership firm or a company that is unlisted can be converted into LLP. There are many advantages of converting a partnership firm into a LLP; however, the same doesn't apply for the conversion of a Company to a LLP.

Can an LLP converted into Private Limited Company or a Public Limited Company?
No, right now Act does not permit this conversion. An LLP can't be converted into Private or Public limited but a Private or Public Limited Company can be converted into LLP.

What are the new forms applicable from 01.10.2018?
• RUN-LLP: Form for reversing a name for the LLP.
• FiLLiP: Form for Incorporation of LLP.
• Form 5: Notice for change of name.
• Form 17: Application & statement for the conversion of a firm into LLP.
• Form 18: Application & Statement for conversion of a private company/unlisted public company into LLP.

What is the next step after incorporation of LLP?
After incorporation of LLP, an LLP Agreement is to be filed within 30 days of incorporation of LLP.



    
Compare your options
Private Limited Company Limited Liability Partnership One Person Company Partnership Firm
Preferred for Start-ups Professional Services Firms Sole Proprietors Small-medium sized businesses
Limited Liabilty Protection Yes Yes Yes No
Minimum Requirement 2 Shareholders 2 Designated Partners 1 Director
1 Nominee
2 Partners
Fund Raising Options High Low Low Low
Tax Advantage Few Most Few Minimal
Statutory Compliances High Low High Minimal
Compliance Cost High Medium Medium Low
Get Started >> Get Started >> Get Started >> Get Started >>
           


Why choose us?



Tech Driven Platform

Transparent Pricing

Expert Team

Free Legal Advice

100% Client Satisfaction

On Time Delivery

Tech Driven Platform

Expert Team

Free Legal Advice

On Time Delivery

Transparent Pricing

100% Client Satisfaction