What is LLP Registration?
Limited Liability Partnership was introduced by the Limited Liability Partnership Act, 2008. The moto behind the introduction of Limited Liability Partnership is to provide a business entity that is simple to maintain and restricting the liability of its owners. With an easy incorporation process and simple compliance formalities, LLP has become one of the easiest form of business to incorporate and manage in India. The partners manage the business of the LLP.
The benefit of a LLP over a traditional partnership firm is that it limits the liabilities of its partners to their contributions to the business and even protects each partner the negligence or misdeeds of the other partners. Hence, not making one partner responsible for another’s negligence and debts of the LLP. All the partners enjoy a form of limited liability protection for each individual’s protection within the partnership.
Compared to a private limited company, LLP is a cheaper option to begin with. But, in case one requires funding in future, then, a private limited company would be the most suitable to incorporate.
The average time taken to complete a LLP registration is about 20 – 25 working days, subject to government processing time and client document submission.
Documents Required for LLP Registration
TO BE SUBMITTED BY PARTNERS
- Scanned copy of Pan Card or Passport (Foreign Nationals and NRI’s)
- Scanned Copy of Aadhaar Card/ Passport/ Voter’s id
- Scanned passport sized photograph
- Scanned copy of latest Bank Statement/Mobile Bill/ Gas Bill or Electricity Bill.
FOR THE REGISTERED OFFICE
- Scanned copy of notarized rental agreement by the director on behalf of the proposed company. (After name approval process)
- Scanned copy of NOC from Landlord.
- Scanned copy of Latest Electricity bill/ Telephone(Landline) Bill/ Gas Bill.
Note : Your registered office need to be a commercial space; it can be your residence, too.
LLP Registration Process
1 WORKING DAY
All designated partners must apply for the Digital Signature Certificate (DSC), which is necessary to file the LLP registration documents by applying for a Designated Partner Identification number (DPIN).
8 WORKING DAYS
As soon as we apply for the DSC and DPIN, we will ask you to pick a name for your LLP, and send us some scanned documents regarding it and its designated partners. Our suggestion is to give a minimum of 3 names. The Registrar of Companies shall select the appropriate name.
10 WORKING DAYS
Once the name is approved, the final form preparation will begin which shall include the rent agreement for the proposed registered office of the LLP.
1 WORKING DAY
Every LLP needs a registered Permanent Account Number (PAN) and Tax Account Number (TAN). We will make the application online ourselves. The PAN and TAN will be couriered to your registered office address in 21 working days.
|Private Limited Company||Limited Liability Partnership||One Person Company|
|Start-ups and growing companies||Professional services firms||Sole promoters|
Ease of Accommodating Investment
|Very easy to accommodate||Possible, but unlikely||Possible, but severely unlikely|
Limited Liability Protection
|Few benefits||Most efficient||Few benefits|
|Know More »||Know More »||Know More »|
WHO IS RESPONSIBLE FOR MISCONDUCT OR NEGLIGENCE IN LLP?
The major advantage of a LLP is that the partner who has is guilty of any misconduct is responsible for his own act and not any other partner.
IS LLP IS A BODY CORPORATE?
Yes, LLP is a body corporate.
CAN A SALARIED PERSON BECOME THE PARTNER IN LLP?
Yes, a salaried person can become partner in an LLP.
WHAT IS THE MAXIMUM LIMIT OF PARTNERS TO FORM A LLP?
There is no maximum number of partners for a LLP.
CAN AN LLP BE INCORPORATED FOR NON PROFIT ACTIVITIES?
No, a LLP cannot be incorporated for Non-profit activities.
CAN AN EXISTING PARTNERSHIP FIRM OR COMPANY BE CONVERTED TO 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.