LLP Company Incorporation is the one of the most popular forms of business entity among the entrepreneurs. Before the LLP Registration in India, the entrepreneurs must have the knowledge about the business laws.
Here is the step-by-step Guide for Entrepreneurs for the LLP company Registration in India. From filling all the applications to submitting all the required documents in detail.
What is the Limited Liability Partnership Registration in India?
Limited liability partnership(LLP) is one of the modest forms of business structure that combines the features of both the partnership registration and a private limited company. Limited liability Partnership Act was introduced in the year 2008 with more flexibility and offering limited liability protection to their partners.
Minimum 2 partners and maximum no upper limit on the partners are required to register a LLP in India. There must be one Indian citizen and resident to be there in the limited liability partnership to register in India.
What Are The Features & Benefits Of LLP Registration In India?
Limited Liability Partnership Registration offers various benefits to entrepreneurs due to its flexibility and liability which is limited to partners.
Features of LLP company registration in India are:
- Low cost Formation: Formation of an LLP is relatively more cost effective as compared to the other business entities like Private limited company, One person company and public limited company.
As relatively cheaper and enjoys the benefits of both partnership registration and a private limited company.
Also Read: LLP Company: Advantages, Features, and Benefits
- Separate Legal existence: It has separate legal existence from its partners.It can enter into any contracts on its own name, can be sued or be sued in any case.
- Easy transferability: There is no restriction upon joining or leaving the LLP. There is easily transferable ownership.
- No minimum capital contribution required: There is no minimum capital contribution required in case of formation of LLP. You can easily incorporate a LLP with any contribution mutually decided by the Partners.
- Perpetual succession: There is a perpetual succession in the LLP , as the LLP never comes to an end without any mutual consent.
What are the documents required for LLP Registration?
The following Documents are required for LLP (Limited Liability Partnership) registration in India:-
For Partners:
- Pan card (All partners): All the partners are required to provide their PAN card as it is one of the primary ID proof for incorporating an LLP.
- Aadhar Card (All partners): Aadhar cards of all the partners are also required to submit while registration of an LLP.
- Passport Size Photos (Latest photos of All partners): Latest photographs of the partners are required for obtaining Digital signature.
- Passport (In case of Foreign Nationals and NRI’S) : Passport is one of the mandatory requirements for foreign nationals who want to become a partner in the Indian LLP. NRI’s have to submit their passport mandatorily.
Passport has to be notarised or apostilled by the foreign authorities in the country of such foreign nationals , it can be also signed by the Indian embassy in that country.
Residence proof
- Residence proof of All partners – (Latest Bank Statement/Telephone or Mobile Bill/electricity or Gas Bill).
Residence proof of foreign nationals like driving license, bank statement residence card or any government issued Identity proof containing the address required.
For Premises address:
- Business Address proof ( Latest Electricity bill/telephone bill of the registered office)
* Note: If the documents are in the other language other than the English language then the translation copy will be required to submit at the time of incorporation.
What is the LLP registration process?
LLP Registration is an online process. By following steps you can easily get your registration.
- Obtaining digital signature Certificate (DSC): Digital signature of one of the designated partners is required for incorporation of an LLP.
- Obtaining DIN (Director Identification Number): DIN is a unique identification number which is allotted to the designated partners of the LLP who aspire to become a designated partner of the LLP.
- Choose a unique name of the LLP: At filling RUN -LLP form , one will be filling 2 names at a time to get a name of the LLP which will adhere to the guidelines of the Ministry of Corporate Affairs (MCA).
- Filling of Incorporation forms (FiLLiP): This form includes all the necessary information about the proposed partners. Their Identity proof, address proof and the business premises address will be required to file in the form.
It also includes a declaration from partners consenting to become a designated partner of the proposed LLP.
- Certificate of Incorporation, PAN and TAN of the LLP : Once all the information, documentation is filed in the forms verified by the MCA officials then they issue a Certificate of Incorporation, PAN ,and TAN of the LLP.
- Draft LLP Agreement : After incorporation of the LLP,draft the LLP agreement containing all the partners rights, duties and obligations. This Limited Liability Partnership Agreement must be filed with the MCA within 30 days from the date of incorporation.
What is the Annual Compliance for LLP?
LLP’S is composed of legal requirements that are required to be filed on an annual basis. These regulations are mandatory to be complied according with the Limited Liability partnership Act 2008.
An LLP must file annual return forms and is compulsory to file a statement of Account and Solvency.
There are very few compliances to be followed in case of a LLP.
Annual filing forms:
- FORM 8: This form must be filed before 30th october every year. It contains the details of the statement of Accounts and solvency.
- FORM 11: This form must be filed before 30th may every year. It contains details of all the designated partners like any changes in the management of the LLP.
Audit under IT Act
LLP’s whose turnover exceeds 2 crores in case of a business or In case of profession if it exceeds 50 lakhs it is required to get its books of accounts tax audited under section 44AB of the income tax Act. It should be filed by 30th September.
Conclusion
Concluding that by incorporating a Limited Liability Partnership by filling all the necessary compliances as LLP is one of the finest and the modest form of business structures for the entrepreneurs who enjoys all the partnership features and a company privileges. It provides a legal identity to the business and opens the door for funding and credit facilities to the businesses.
As JustStart, a team of full fledged professionals who can help you in registering your Limited Liability Partnership and great option for business entrepreneurs to start with us . Our experts help you in all the legal compliances before and after incorporation of LLP registration application.