LLP REGISTRATION

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LLP REGISTRATION

Registering a limited liability partnership is the most popular way of starting a professional services firm. It has various tax advantages and minimal compliance requirements.

There are only 3 simple steps:

We will help you register your partners with the MCA (Ministry of Corporate Affairs) We will help you pick the right LLP name We will draft your company's constitution (LLP Agreement) That's it. LLP incorporation is done. We will then help you get an LLP PAN and TAN. Please fill up the form below so you can speak to our legal advisor on the LLP registration process.

WHAT IS LLP REGISTRATION?

Limited Liability Partnership (LLP), introduced only in 2008, has quickly become a popular legal structure for businesses. Its main improvement over the General Partnership is that, as the name indicates, it limits the liabilities of its partners to their contributions to the business and also offers each partner protection from the negligence, misdeeds or incompetence of the other partners.
The LLP is also cheaper to incorporate than a private limited company, requires fewer compliances and can be a smart choice from a tax perspective. However, if you're looking to raise venture capital or attract talent with employee stock options, private limited is the way to go as LLPs cannot easily accommodate it. This is why they are most popular with professional services firms (web designers or architects, for example) that require no equity funding.

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Any individual, or even a company or an LLP, can become a partner. However, only an individual can become a ‘designated partner’ in an LLP.

Yes, non-resident Indians and foreign nationals who are willing to enter into an LLP partnership can do so, provided they submit the necessary documents after getting it notarized by the concerned authorities. Although, at laest one of the designated partners in an LLP should be an Indian national.

Any group of persons who have or want to invest money in a business can start an LLP. A person or an investor becomes a partner, according to the LLP agreement, as provided in the Act of 2008. Also, the investors/partners are owners of the business started under the LLP.

An LLP agreement is one that is made between the partners and the LLP regarding the relationship between the individual partners in the LLP. An LLP agreement usually consists of management policies, inclusion of new partners, policy making strategies, and so on.

According to the LLP Act, a minimum of two designated partners are required to start an LLP. The designated partners are responsible for fulfilling all the essential requirements involved in starting and running an LLP.

Typically, only start-ups that will not be looking for venture capital funding register LLPs. This is because venture capitalists only invest in private and public limited companies.

Yes, it is much cheaper to run an LLP than a private limited company, particularly in your early start-up days. This is because many compliances, such as an audit, apply to LLPs only after their turnover is sizeable. Most LLPs spend about half as much as a private limited company in their first year on registrations and compliance work.

Advantage

Limited Liability

Businesses often need to borrow money. In structures such as General Partnership, partners are personally liable for all the debt raised. So if it cannot be repaid by the business, the partners would have to sell their personal possessions to do so. In a private limited company, only the amount invested in starting the business would be lost; the directors' personal p

Reduced Compliance

An LLP only requires audited annual returns to be filed if it has a turnover of greater than Rs. 40 lakh or capital contribution of over Rs. 25 lakh. It also needs to communicate fewer business transactions and structural changes than a private limited company.

Tax Advantages

There are some important advantages over the private limited company. For example, Dividend Distribution Tax and tax surcharge don't apply. Loans to partners are also not taxable as income.

TO BE SUBMITTED BY PARTNERS

Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs) Scanned copy of Voter's ID/Passport/Driver's License Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill Scanned passport-sized photograph Specimen signature (blank document with signature [partners only]) Note: Any one of the partners must self-attest the first thr

FOR THE REGISTERED OFFICE

Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill Scanned copy of Notarised Rental Agreement in English Scanned copy of No-objection Certificate from property owner Scanned copy of Sale Deed/Property Deed in English (in case of owned property) Note: Your registered office need not be a commercial space; it can be your residence

6 WORKING DAYS

All the proposed partners need a Digital Signature Certificate (DSC), which is necessary to get them a Digital Partner Identification Number (DPIN). You will only need to provide a handful of scanned documents; our representatives will ensure the forms are correctly filled.

12 WORKING DAYS

As soon as we apply for the DSC, we will ask you for the unique name you wish to give your LLP. These will be used to file for incorporation with the MCA. The Certificate of Incorporation will be approved at the end of this process.

2 WORKING DAYS

Every LLP needs a registered Permanent Account Number (PAN) and Tax Account Number (TAN). We will make the application online ourselves, but you will need to courier hard copies of the required documents yourself. The PAN and TAN will be couriered to the your registered office address in 21 working days.