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Registration of LLPs in India

 

Online Limited Liability Partnership Registration - A Summary

 

Limited Liability Partnerships (LLP) bring together the advantages of partnerships and limited liability companies. After January 2009, it began to take shape in India and was an immediate success with start ups and professional services. The purpose of the LLP was to give owners of businesses a simple, low-maintenance structure that would also benefit from limited liability.

 

Positive aspects of a Limited Liability Partnership

Here are the top four justifications why LLP is a popular business structure:

 

Liability Limitation

Only a small portion of the debt accumulated by an LLP's members is their responsibility. Personal assets held by the partners will not be considered in the event of bankruptcy. The personal assets of directors and partners will, however, are confiscated in the case of proprietorships and partnerships if the company fails.

 

Distinct legal entity

The partners who make up an LLP are not related to one another legally. It has an unbroken existence and eternal succession, meaning that even if the partners part ways, the company will continue to operate. For the firm to dissolve, the terms of dissolution must be jointly agreed upon.

 

Versatile Agreement

An LLP's ownership can be easily transferred as well. It is simple to add someone to an LLP as a designated partner, giving them ownership.

 

Good for Small Businesses

 

No formal audits are necessary for LLPs with capital under 25 lacs and annual revenue under 40 Lacs. This makes filing as an LLP advantageous for new and small enterprises.

 

Criteria for Eligibility

 

For LLP company registration in India, the following conditions must be satisfied:

• To create an LLP, you need at least two partners (no upper limit)

• A natural person must be chosen to represent a body corporate if it is a partner.

• Each partner must agree to contribute to the shared capital, and the LLP must have authorised capital of at least Rs. 1 lakh.

•  At least one chosen partner must be an Indian citizen..

 

Required Documents for LLP Registration

 

When registering the business, you must comply with the following LLP registration requirements.

The following documentation is required from the partners:

• A PAN card or passport (foreign nationals or NRIs)

• Aadhaar cards, voter identification cards, passports, and licences

• Recent bank statements, phone bills, mobile phone bills, energy bills, and gas bills

• A passport-sized photo

• Sample signature on a blank document.

Note: For the first three documents, one partner must self-attest. Foreign nationals and NRIs must have all documents apostille- or notarized- if they are currently in India or another country that is not a member of the Commonwealth (if from a commonwealth country).

 

Concerning the registered office:

• Electricity bills

• English-language lease document notarized

• Property deed or sale deed in English with a no-objection statement from the owner (in case of owned property).

 

 A Guide to Online LLP Registration

 

Using Account Kart, you can register an LLP online. The actual registration process is complex and is described below for your understanding, even though we simplify LLP registration for you to a straightforward 3-step procedure:

 

Step 1: Getting DSC and DIN

The directors' DSC is necessary to complete any paperwork that must be filed online. To begin the process, two partners' DSCs and DINs must be obtained. On your behalf, we obtain the essential data from you and file it.

 

 Step 2: Name Approval Application

In addition, we reserve the name you want to register your LLP under while simultaneously checking if the name is available. The MCA portal allows you to lookup name availability.

Only in the event that the central government does not find the name to be undesirable will the registrar provide clearance. A trademark, body corporate, partnership firm, or LLP should not have any similarity to the name.

 

Step 3: LLP Agreement

The LLP agreement and other documents required for registration must be drafted in the next phase. The mutual rights and obligations of the partners as well as those between the LLP and the partners are established by the LLP agreement, which is essential in a limited liability partnership. So, when preparing this agreement, our professionals take great care.

Upon registering the LLP by submitting Form 3 online on the MCA portal, the partners formally join into the LLP agreement. Following incorporation, this process must be completed within 30 days.

 

Step 4: Certificate of LLP Incorporation

The relevant documentation will be delivered by our group to the registrar. Once the registrar has approved all the paperwork and documentation, you obtain your LLP incorporation certificate and are virtually ready to begin running your business.

 

Step 5: Open a Bank Account and Apply for Your PAN

As soon as you receive the certificate of formation, we will apply for your LLP's PAN, TAN, and bank account.

 

The LLP Registration in India bundle from Account Kart include the following:

• For two directors, DSCs

• 2 directors' DINs

• Creating the MOA and AOA

• Creating a partnership contract

• Fees for registration and stamp duty

• PAN and TAN registration and a certificate of organization.

 

In addition, we offer the following support for LLP company registration in India:

• Free first consultation, then ongoing help to address any issues you may have

• Complete assistance with creating a current account

• Thorough and prompt updates on ROC compliances

• Programme for online accounting that is good for a year

• A single master file containing all the paperwork required to submit the incorporation

• Additionally, you will receive a DBS bank-powered current account with no balance.

 

FAQs about Online LLP Registration in India

1. What is an LLP agreement, exactly?

An LLP agreement is formed between the partners and the LLP regarding the relationships between the different partners in the LLP. An LLP agreement often contains management principles, clauses for adding new partners, procedures for creating policy, etc.

 

2. How many partners are required to form an LLP as a bare minimum?

The LLP Act mandates that an LLP be created with a minimum of two designated partners. All requirements for establishing and maintaining an LLP must be fulfilled by the selected partners.

 

3. How many partners are absolutely necessary for the formation of an LLP?

The LLP Act mandates that an LLP be created with a minimum of two designated partners. All requirements for establishing and maintaining an LLP must be fulfilled by the selected partners.

 

4. Is running an LLP cheaper than running a private limited company?

Undoubtedly, running an LLP is less expensive than running a private limited business, especially in the beginning. The reason for this is that certain compliances, like an audit, only apply to LLPs when they generate a significant amount of revenue. LLPs typically spend half as much in their first year on registrations and compliance duties as a private limited company does.

 

5. What kind of start ups most frequently registers LLPs?

Only newly formed businesses that do not plan to seek venture capital backing often file for an LLP. Because they only finance private and public limited enterprises, venture capitalists are the reason for this.

 

6. Is maintaining an LLP less expensive than a private limited company?

Yes, operating an LLP is far less expensive than operating a private limited company, particularly in the beginning. This is so because LLPs only need to comply with some regulations, such an audit, if they generate a significant amount of revenue. LLPs typically spend half as much on registrations and compliance procedures in their first year as a private limited company.