Limited Liability Partnership (LLP) Registration
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What is a Limited Liability Partnership?
How to Register an LLP Company in India?
Step-1
Document Verification
Verify the necessary documents for registration
Step-2
DPIN for all Partners
Obtain Partner Identification Number
Step-3
DSC for 2 Partners (Valid for 1 year)
Obtain Digital Signature
Certificate
Step-4
Name Search (4 Options allowed)
Submit name choices for approval
Step-5
Name Registration
Register the chosen company name
Step-6
LLP Deed Drafting & Execution
Drafting of partnership deed & execution
Step-7
LLP Registration
Complete the company registration process
Step-8
LLP Certificate
Issue partnership certificates to shareholders
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Benefits of Private Limited Company Registration
Separate Legal Identity of the Company
Private Limited Company Registration gives separate Legal identity to the Company.
Limited Liabilities on partners
Limited Liabilities on partners as personal & company assets are considered separately.
Liberty to have International Partners
Pvt Ltd gives liberty to have international partners, only partner is required to be an Indian Citizen
No Minimum Capital is Required
For LLP Formation and Registeration, you don’t required any minimum capital .
Detailed Comparision Between Types Of Companies in India
| Aspect | PVT LTD | OPC | LLP |
|---|---|---|---|
| Act | The Company Act 2013 | The Company Act 2013 | The LLP Act 2008 |
| Minimum Number of Directors/Partners | At least 2 Directors Required | At least 1 Director Required | Minimum 2 Partners will be required |
| Maximum Number of Directors/Partners | Maximum 15 Directors a Company Can Have | Maximum 15 Directors a Company Can Have | No Limit |
| Maximum Members/Shareholders | Maximum 200 Members/Shareholders are allowed | Only One | No Limit |
| Authorized Capital | Minimum 1 Lakh | Minimum 1 Lakh | No Minimum Capital Required |
| Eligibility Criteria | Any Person May Form a Private Limited Company, but any of them should be an Indian Resident | A Person who is Resident of India | Any two Person who is Major and at least one of them must be an Indian Resident |
| Put After Name | Pvt Ltd | OPC | LLP |
| Liability of Shareholders/Partners | Shareholder’s Liability is Limited to their Allotted Capital | Liability is Limited to Member’s Capital | Liability of Partners is Limited to their Agreed Contribution |
| Any Changes in Business | Filling Form 32 with ROC | Filling Form INC-4 with ROC | Filling Form 3 with ROC |
| Existence | A Private Limited Company has a Perpetual Succession since any changes will not affect its existence. | A Private Limited Company has a Perpetual Succession since any changes will not affect its existence. | A LLP Company has a Perpetual Succession since any changes will not affect its existence. |
| Transfer of Ownership | Can Transfer Ownership by Transferring Share | Can Transfer Ownership | LLP Ownership is Wholly or Partly Transferable. |
| Business Conversion | Can Be Converted into LLP, OPC or LTD | Can be Converted into LLP or PVT LTD | LLP Can be Converted into Company |
| Maintaining Books of Accounts | Mandatory | Mandatory | Mandatory |
| Maintaining Books of Statutory Records | Mandatory | Mandatory | Mandatory |
| Provision for Public Deposit | Sec. 73 of The Company Act 2013 | Sec. 73 of The Company Act 2013 | No Provision |
| Provision for Loan to Directors | Sec. 185 of The Company Act 2013 | Sec. 185 of The Company Act 2013 | No Provision |
| Board/Partners Meeting | First Meeting should be held within 30 Days from Incorporation, After First Meeting Minimum 4 Meeting in a Calendar year Should be Hold. | NA | Not Required |
| Statutory Audit | Mandatory | Mandatory | In Case Turnover is More than 40 Lakh or Partners Contribution Exceeds 25 Lakh. |
| Internal Audit | Companies Having Turnover of 200 Crore are applicable for Internal Audit | NA | NA |
| Income Tax Audit | Turnover above 1CR | Turnover above 1CR | Turnover above 1CR |
| Income Tax Rate | 25% | 25% | 30% |
| Income Tax Return | ITR-6 | ITR-6 | ITR-5 |
Frequently Asked Questions
Frequently Asked Questions (FAQs) ▸ What is LLP Registration?
In India, the Limited Liability Partnership (LLP) idea was first presented in 2008. The LLPs in India are governed by the Limited Liability Partnership Act, 2008. Incorporation of an LLP requires a minimum of two partners. However, a LLP may have an unlimited number of partners as well as the limited liabilities which are enjoyed by the shareholders. A Limited Liability Partnership has a separate corporate business entity and gives the benefit of flexibility in partnership as well.
How much time it will take for the registration ?
It will generally take 5-6 working days for LLP firm registration.
What are the Documents required for Limited Liability Partnership Registration?
The documents required for Private Limited Company registration are as follows:
. PAN Card of the Directors
. Aadhaar Card of the Directors
. Bank Statement
. Latest Electricity Bill
. Latest Mobile Bill
. Passport size Photograph of the Directors
. Board Resolution Authorising Investment.
. Investing Company Address Proof
. Recent Utility Bill for Business Purpose
▸ What will I get after we register the company?
You will get a registration certificate that will notify that your firm is successfully registered.
▸ What is an LLP Agreement?
It is a written document which discusses all the duties and responsibilities amongst the partners and also the nature of the business.
▸ What should be the minimum turnover for LLP?
The minimum turnover for a Limited Liability Partnership should be 25 lakh approx.
▸ What are the advantages of LLP?
The advantages are as follows:
- No minimum capital contribution is required.
- Limited Liability.
- Credibility.
- No partners can be unlimited.
- Perpetual Succession.
- The employees enjoy flexibility in work.
- Partners are not liable to pay taxes on their total Revenue.
- Can be dissolved easily.
- Separate legal entity.
▸ Can LLP be converted into Pvt Ltd.?
According to Section 366 of the Companies Act, 2013 and Company (Authorized to Register) Rules, 2014 says that a Limited Liability Partnership company can be converted into a Private Limited Company. For the businessmen who convert their company from LLP to Pvt Ltd their major objective is to raise the growth of the company.
▸ Can one person start LLP?
At least two shareholders are required to start a Limited Liability partnership, else there are no restrictions on the number of partners and members in it. The two people should be residents of India.
▸ Is GST required for LLP registration?
Every LLP that provides GST-exempt goods and services is required to register for GST. A GST registration can also be necessary, depending on the turnover.
▸ What is a Digital Signature Certificate(DSC)?
Usually, one Notice by an Advocate on behalf of a client suffices. However, the client has the right to communicate personally also for settlement of the issue. And that communication serves as the part of the plaint/complaint.
▸ What is a liability of a partner in LLP?
Liability of a partner in LLP is very limited, in the case of bankruptcy the institution is only allowed to seize the assets which are registered by the business and no personal assets are harmed.
