What is a Limited Liability Partnership (LLP)…?
Easy to Register LLP Company
Limited Liability Partnership (LLP) introduced in 2008 is a prominent legal business structure in India having fewer legal compliances, as the name suggests LLP limits the liability of its partners & lends protection from the incompetence or misdeeds of the other partners. LLP registration is one of the simplest forms of business to incorporate and manage in India.
Also, LLP is less expensive to incorporate and maintain than a Private Limited Company & serves as a better option from a tax perspective.
Advantages of LLP
- No requirement of minimum contribution
- No limit on owners of the business
- Lower registration cost
- No requirement of compulsory Audit
- Taxation Aspect on LLP
Disadvantages of LLP
- Penalty for Non-Compliance
- Inability to Have Equity Investment
- Higher Income Tax Rate
Its LLP Company’s Structure
| Details | Businesses that focus on providing services. Businesses don’t require a lot of investment. |
| Minimum no of Partner | 2 |
| Compliance | Low |
| Obtaining Fund | Moderate |
| Tax Rate | Tax@30% |
Steps to Register LLP Company
Easy Steps to Register LLP Company
Step 1: Digital Signature Certificate (DSC)
A Digital Signature Certificate (DSC) from the Controller of Certification Agencies (CCA) is required for each director and shareholder. This entails supplying necessary information including a phone number, email address, PAN, Aadhaar card, and passport-sized pictures. Additionally, if necessary, documents notarized and apostilled by foreign nationals must be provided.
Step 2: DIN
If you want to serve as a director for an organization, you have to obtain a Director Identification Number (DIN). Directors must supply DIN, which must be included on the registration form.
Step 3: Name Approval
To obtain a distinctive business name, start by filling out the SPICe+ Part A form. This comprises identifying the main industrial activity division, determining the company type, class, category, and subcategory, and providing a thorough business description. Two names need to be suggested for approval.
Step 4: Drafting MOA and AOA
Write the important firm information in the Memorandum of Association (MOA) and Articles of Association (AOA). Get professional and subscriber digital signatures before presenting these documents to the MCA for approval.
Step 5: Incorporation Application
The MCA will issue the Certificate of Incorporation (COI) with the Company Identification Number (CIN), PAN, and TAN completing a successful document verification procedures.
Step 6: PAN and TAN Application
Step 7: Company Registration in 7 to 15 Working days
Required Documents for Register LLP
- PAN of all Partners
- Adhar of all Partners
- Photo of all partners
- Mobile No of Partners
- Email of all Partners
- Bank statement of all Partners
- Trade Name
- Light Bill ( With Owner PAN & Adhar)
- Rent agreement if any
- Nature of business
FAQ
1. What is LLP registration?
LLP is a partnership firm established by a minimum of two partners who enter into an LLP agreement.
2. LLP better than partnership?
Is LLP better than partnership? An LLP has perpetual succession, which means its existence is not affected when a partner joins or leaves. A partnership firm does not have perpetual succession, and its existence depends upon the will of its partners. There is no limit on maximum partners in an LLP.
3. GST required for LLP?
GST registration is mandatory for LLPs whose annual turnover exceeds Rs. 40 lakhs for goods or Rs. 20 lakhs for services.
4. LLP public or private?
LLP is a body corporate formed and incorporated under LLP ACT 2008. LLP is a preferable form of organization as it provides benefits of both the private limited and partnership firm. Llp is a legal entity separated from its partners
5. Can LLP raise money?
Can LLP raise money? LLP stands for Limited liability partnership which refers to a company form of business where the only the partners contribute in the capital and their liability remains limited to the extent of their capital contribution in the business. Therefore, LLP cannot raise funds from public in any form.
6. What is the minimum capital requirement for LLP?
No minimum capital requirement
7. Tax audit compulsory for LLP?
LLPs whose turnover exceeds Rs. 1 crore in a financial year are also required to get a tax audit done under the Income Tax Act, 1961. The tax audit is done to ensure that the LLP has maintained proper books of accounts and has complied with the tax laws
8. How LLP is formed?
Step 1: Procure Digital Signature Certificate.
Step 2: Reserve LLP Name.
Step 3: Preparation of Documents for Incorporation of LLP.
Step 4: LLP Incorporation and DIN Application.
Step 5: Apply for PAN and TAN.
Step 6: Drafting and Filing LLP Agreement.
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