Limited Liability Partnership Registration
The LLP Act 2008 went into effect on March 31, 2009, the LLP Regulations 2009 were made aware on April 1, 2009, and became effective on May 31, 2009, intending to provide a simple business structure that benefits owners with limited liability with an LLP registration.
A Limited Liability Partnership (LLP) is a business structure that blends the flexibility of a partnership and the liability protection of a company.
The registration of a partnership is required because it affords partners the benefit of limited liability, meaning their assets remain protected during a financial crisis. It also grants the partnership an independent legal status, which aids in the establishment of credibility with customers and suppliers. Furthermore, in the Limited Liability Partnership Act of 2008, regardless of the nature of the operation, LLP accounts are audited if the annual sales turnover exceeds Rs. 40 lakhs or the capital contribution exceeds Rs. 25 lakhs, a statutory audit firm is recommended.
The LLP Agreement defines the partners' rights and responsibilities, the nature of the business, and the profit-sharing ratio. To ensure compliance with all legal requirements and to avoid any delays or errors in the registration process, you must seek the services of a professional LLP registration service provider.
Eligibility Criteria for LLP Registration
It is mandatory to comply with the following criteria during the LLP registration:
- All partners must obtain a unique DPIN number.
- Should not be a non-profit organization
- At least one designated partner in the LLP must be an Indian citizen. NRIs and foreign nationals can also be partners, subject to compliance with Foreign Exchange Management Act (FEMA) regulations.
- Proof of address for a registered office.
- A company name
- A DSC for each partner.
Required Documents for LLP Registration
- A copy of each partner's PAN (Permanent Account Number) card is required. In the case of foreign nationals, a copy of the passport is.
- As proof of identity and address, a copy of any of the following documents: Aadhaar, passport, driving license, or voter ID Card. All documents must be self-attested.
- five passport-size photographs
- For NRIs, passport or address proof (driver's license, bank statement, residence card, or any other government-issued identity proof).
- Proof of address.
- For rented properties, a No Objection Certificate (NOC) and a rental agreement
- For owned property, a sale deed, or property deed.
Process of LLP Registration Online with BC Shetty & Co
Online Application Filing:
Obtaining the DSC and DIN of each partner, using the submitted documents (PAN, Aadhar, Passport, proof of address, passport size photos, proof of identity, DIR 4, and personal details).
Submission of Required Documents:
After assisting in assigning a suitable name for the company based on the availability in the MCA portal, the documents filed are drafted and stamped as your LLP agreement, ready to be submitted.
Review of Application by the Registrar:
The required forms and documents are submitted to the Registrar, to be reviewed and approved.
Approval or Rejection of Application:
Upon application approval, the registrar typically issues the LLP incorporation certificate within 14 days. In case, the application is rejected, the applicant can file an appeal within 90 days and inform the registrar about the action taken.
Issuance of LLP Incorporation Certificate:
Filing of the LLP Agreement within 30 days of incorporation, and the necessary ratification of the LLP agreement, is done.
Benefits of LLP Registration
- The partners' liability in the LLP is limited to their capital contribution, meaning that the partners' assets are not at risk in the event of any losses or liabilities incurred by the LLP.
- An LLP is a distinct legal entity from its partners, meaning that the LLP has the authority to leave, own property, enter into contracts, etc.
- An LLP company incorporation is simple to manage because there are no stringent compliance requirements. They can be formed with simple steps and dissolved.
- The partners in an LLP have the flexibility to manage the business as they deem suitable, it is simple to transfer an LLP's ownership, and they can also decide on the profit-sharing ratio among themselves.
- LLPs have become increasingly attractive to investors since they give some protection for their investments due to the partners' limited liability.
There are several advantages to forming an LLP in India, including limited liability, separate legal entity status, and management and profit-sharing flexibility.
LLP registration ensures your company complies with all applicable laws and regulations. It also offers some protection for your assets and investments.
For Comparison between LLP and Private limited, please refer our newsletter - Should I register my Start-up as LLP or Private Limited Company
Why Choose BC Shetty & Co For LLP Registration
- Expertise and Experience: Experts with almost four decades of experience in chartered accountancy and financial accounting advisory services.
- Online LLP Registration: We offer an efficient online LLP registration that enables you to complete the entire registration process from the ease of your home or office, saving time and effort, and resulting in a quick and efficient registration process.
- Competitive pricing: Ensuring you get the best value for your money, our pricing is transparent, without hidden charges.
- Customized Solutions: We attempt to comprehend your business requirements and provide tailored solutions to ensure you get the most out of your LLP registration online.
- Post-Registration Support: After the LLP incorporation, we provide comprehensive assistance to ensure that your LLP adheres to all applicable laws and regulations and provide ongoing accounting, taxation, and compliance services, allowing you to concentrate on growing your company.
BC Shetty & Co. provides professional assistance with seamless and tailored solutions in the process of LLP registration to ensure a smooth and trouble-free online LLP registration process.
For Foreign Direct Investment (FDI) in Limited Liability Partnership (LLP) please refer our newsletter
How long does it take to incorporate an LLP?
The Registrar will register the LLP within 14 days of receiving Form-2 and issue a certificate of incorporation in Form-16.
Is LLP registration mandatory?
Yes, LLP registration is mandatory as per Sections 2(0) & (q), 22, and 23 of the Act. In the absence of agreement on any matter, the mutual rights and liabilities shall be as provided for in Schedule I to the Act, according to the provisions of the LLP Act.
What type of business is LLP suitable for?
Except for non-profit organizations, any lawful business that is a service- or product-based company in India can register as an LLP.