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Updated on : 22-Feb-2020 05:50 AM IST | 4 min read
Limited Liability Partnership (LLP) Registration in India
LLP means limited liability partnership. LLP is one of the easiest forms of business in India. LLP is governed by the Limited Liability Partnership Act, 2008. It is a legal entity separate from its partners. The limited liability partnership (LLP) offers the benefit of a limited liability to the partners at a low compliance cost. By the benefit of limited liability, partners are not responsible towards the creditors of the company. If any problem arises, creditors/banks can only sell the assets of the company and not the director’s personal assets. In the LLP, a partner is not responsible for the misconduct done by other partner. It is less expensive to incorporate as compared to a Private Limited Company. It also limits the partner’s liabilities.
What Is Included In Our Package?
Documents Required for LLP Registration in India
The following documents are needed for the LLP registration:
- Partners passport size photographs
- Identity proof of the partners
- Address proof of the partners
- Passport of the partners
- PAN card copies of the partners
- NOC from the landlord (If rented)
- Rental agreement copy between the LLP and the landlord.
- Proof of registered office address
- Digital signature certificate
Minimum Requirements for Limited Liability Partnership Registration in India
At least two partners
No minimum requirement of capital
Minimum one partner should be an Indian resident
Registered office should not be situated in a commercial space
Benefits of LLP
Distinct Legal Entity
A LLP is a separate legal entity established under the Limited Liability Partnership Act 2008. The partners are separate from the entity and can sue each other and get sued in the procedure.
A LLP has interruption free existence or perpetual succession. It is brought to an end by the partner’s mutual agreement. Partners will come and go but an LLP runs continuously.
Audit not needed
In LLP, there is no need to audit accounts of those entrepreneurs who are having a turnover of less than 40 lakhs rupees and capital contribution of less than 25 lakhs rupees. LLPs are best for start-ups and the small businesses that just started their operations and want to have minimal compliance related formalities.
Ownership transferred easily
The LLP ownership can be transferred easily to another person by making him as a partner in LLP. LLP is a legal entity separate from its partners. Therefore, if you change the partners, the ownership of LLP will also change.
The LLP is an artificial judicial person who can enjoy, own and acquire property in its own name. This is totally separate from its partners. As LLP is a going concern, no partner can make any claim upon the property of LLP.
The key advantage of a LLP is its limited liability. It is accountable for limited amount of debts as compared to partnership and proprietory firms. If the company is bankrupt, members are not held responsible for the creditors. Creditors can be paid by selling the assets of the office. Directors’ personal assets are secure in this case.
Process of LLP Registration
Firstly, you have to fill the application for LLPIN & DSC. Limited Liability Partnership Identification Number (LLPIN) and DSC (Digital Signature Certificate) is obtained for the proposed partners within a period of 5 to 7 working days.
A minimum of one and maximum of six names are needed to be submitted to MCA (Ministry of Corporate Affairs) for the name approval. As per MCA Processing time, you will get your name approval within 5 to 7 days.
After the name approval, you need to draft the articles of association (AOA) and the memorandum of association (MOA). The AOA and MOA are filed with the statement of subscription to ministry of corporate affairs (MCA).
Incorporation certificate is the proof of creation of your company. The documents of incorporation will be submitted to the ministry of corporate affairs along with the incorporation application. The MCA usually give the approval for your incorporation application within a period of 10 to 12 days.
The final step is to apply for the TAN and the PAN. The TAN and PAN are received within 7 working days. To open your bank account, you can submit PAN, AOA, MOA and certificate of incorporation in the bank.
Things to be considered while Choosing a Name for your Limited Liability Partnership
For every business, company name is very important. It is the first impression for your stakeholders, suppliers and the buyers. The company name should be short, attractive and relevant. You need to take care of various factors while choosing a name for your company -
- The name of the company should be concise and short. People should be able to pronounce it easily and recollect the name as early as they read it or hear it.
- The name of the company should not be offensive/illegal. It should not be abusive and against the beliefs and customs of any religion or group.
- In case of a limited liability partnership, your company name should end with the suffix “LLP”. For example - in case of a private limited company; the company name ends with the suffix “Private Ltd.”
- Your company name should not be identical or similar to the name of an existing trademark or a company.
- Your company name should be related to your business. It should make your brand value in the market.
How Finacbooks help in Limited Liability Partnership Registration?
Finacbooks is a leading Indian portal providing accounting, finance & taxation services to small businesses. We are having more than 10 years of experience in helping individuals providing Limited Liability Partnership registration at a least possible price. We will guide you through the entire process of LLP registration. To avail the best deals on Limited Liability Partnership registration, kindly call us at 8800221252 or you can also e-mail us at firstname.lastname@example.org