Limited Liability Partnership

Incorporate your Limited Liability Partnership

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Write to our advisors at info@msmehelpline.com for Limited Liability Partnership. Our advisors will call you shortly.

Services

Our Package includes the followings:

  1. Designated Partner Identification Numbers of 2 Partners
  2. LLP Name Approval
  3. LLP Deed Drafting
  4. Incorporation Certificate
  5. PAN & TAN
  6. GST Registration
  7. MSME Registration (Complimentary)
  8. Any Government fee, if applicable and the cost of digital signatures shall be paid by you directly for which we will share the challan/bill.
    Rs.7750/-
    Rs.5500/-

About Limited Liability Partnership

Limited Liability Partnership (LLP) was introduced in India by way of the Limited Liability Partnership Act, 2008. The basic principle behind the introduction of Limited Liability Partnership (LLP) is to provide a form of business entity that is simple to maintain while providing limited liability to the owners/partners.

A Limited Liability Partnership (LLP) is a balanced structure limiting personal liabilities of the partners. LLPs are preferred by Professionals, Micro and Small businesses that are family-owned or closely-held. Since LLPs are not capable of issuing equity shares, LLP should NOT be chosen for any business that has plans for raising equity funds from Angel Investors, Venture Capitalist or Private Equity Funds.

Documents Required

  Photographs of Partners
  Self-attested scanned copy of PAN Card & Aadhaar Card.
  Residential address proof (Bank Statement/ Electricity Bill/ Telephone Bill/ Mobile Bill) of the proposed Designated Partners.
  Copy of electricity bill/landline bill/water bill.
  Copy of Rent agreement and No objection certificate (NOC) from the owner (if rented)
  Details of Business activity including name of top products/services.

Benefits of Limited Liability Partnership

Limited Liability of Partners:

LLP offers a great advantage to the partners for limiting their personal risk. Liability of financial contribution of any partner is restricted to the capital contribution as per the LLP agreement. Further, one partner is not held responsible for the actions of negligence or misconduct of any other partner.

Operational Flexibility:

LLP Agreement deed among partners of an LLP, clarifies operating structure including rights and responsibilities of the partners. Typically, LLP would select a Designated Member who would control day-to-day operations. It can have individuals or existing businesses as members. Further, this structure allows to clearly define roles of the partners and their respective responsibilities.

Separate Legal Existence:

Registration of LLP creates a separate legal identity than its partners. Governed by the LLP Act of 2008, it allows the business to contract with other entities, take legal action, own assets and borrow funds in the name of an LLP itself. It is a major advantage that is not available to a regular partnership firm

Lower Compliance Requirement:

A key benefit of registering an LLP over a private company is that it has lesser compliance requirements. It doesnt have a mandatory audit requirement until a certain level of turnover or contribution is reached. Unlike companies, compliances related to board meetings, statutory meetings, etc. do not apply to LLPs.

Frequently Asked Questions (FAQs)

 

At least two partners are required for an LLP registration. There is no limit to the maximum number of partners.
Any individual/organization can become the partner in an LLP including foreigners/NRI. However, an individual must be above 18 years and should have a valid PAN card.
Yes, but only after an NRI/a Foreign National, has been assigned with the DIN/DPIN. However, at least one designated partner in an LLP must be an Indian Citizen.
Yes, we can register your LLP at your residential address. It is perfectly legal to start the company at home. We just have to provide address proof such as a rent agreement or electricity bill.
No. There is no minimum amount prescribed to form an LLP in India. It can be started with any amount of capital demanded by the business. Although there is no minimum requirement, every partner must make a contribution financially to form LLP. The amount of capital contribution is disclosed in the LLP Agreement and amount of stamp duty is decided by the total contribution amount.
LLP name availability is an essential part for an online LLP registration. The name of an LLP is reserved through a web based form named LLP-RUN (Reserve Unique Name). The partners can provide a maximum of 2 names in preferential order to reserve any one. The registrar may ask to re-submit the application with different names, if names do not fall under criteria of uniqueness, relevancy or does not fulfil the necessary requirements.
LLP Agreement is an agreement executed by all partners after LLP incorporation in India. The agreement prescribes all the clauses related to business, including the rights, roles, duties, and responsibilities of partners in LLP. The agreement must be filed within 30 days of the issue of a certificate of incorporation. Failure to do so will charge an additional fee of Rs. 100 per day till the date of filing.
Yes, a Limited Liability Partnership registered in India can carry on more than one business subject to their relevance. The activities must be related or in the same field itself. Unrelated activities such as Interior Designing and Legal consultancy cannot be carried under the same LLP. The business activities are mentioned in the agreement and must be approved from RoC.
Statutory audit in case of LLP registration depends on the turnover and contribution of the LLP. If the LLP turnover exceeds Rs. 40 lacs and/or the capital contribution exceeds Rs. 25 lacs, the financial statements must be audited by an eligible statutory auditor.
Yes, an existing partnership firm or a company (unlisted) can be converted into LLP. There are many advantages to converting a partnership firm into an LLP.