Limited Liability Partnership (LLP) Registration
Limited Liability Partnership (LLP) was introduced in India by way of the Limited Liability Partnership Act, 2008. The basic premise 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. Since, its introduction in 2010, LLPs have been well received with over 1 lakhs registrations so far until September, 2014.
The main advantage of a Limited Liability Partnership over a traditional partnership firm is that in a LLP, one partner is not responsible or liable for another partner’s misconduct or negligence. A LLP also provides limited liability protection for the owners from the debts of the LLP. Therefore, all partners in a LLP enjoy a form of limited liability protection for each individual’s protection within the partnership, similar to that of the shareholders of a private limited company. However, unlike private limited company shareholder, the partners of a LLP have the right to manage the business directly.
LLP is one of the easiest form of business to incorporate and manage in India. With an easy incorporation process and simple compliance formalities, LLP is 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 be used for any business that has plans for raising equity funds during its lifecycle.
Reasons to Register a Limited Liability Partnership.
Advantages
LLP Registration Process
Limited Liability Partnership is easy to incorporate and manage. Minimum two partners are required to form a LLP and there is no limit on maximum number of partners. There is no requirement of minimum capital contribution in a LLP. It usually takes 15-20 days to incorporate an LLP, subject to ROC processing time.
1. DSC Application
2. DPIN
3. LLP Registration
4. PAN & TAN Applications
Document Required for LLP Registration
Copy of PAN Card
Copy of Address proof – Aadhaar Card/Driving License/Passport/Voter ID
One Photograph
Proof of Registered Address – Sale Deed/Rental Agreement
Copy of Utility bill – Electricity/Landline telephone/Gas Bill – not older than two months
Testimonials
I feel working with Conseltex was a seamless process for me as they took care of the entire documentation process without me having to look into it at all. This was important as I could still focus on my core business development activities and rest assured that the incorporation process is also been taken care of, Please go ahead without any hesitation to work with VenturEasy as you are in safe hands. A very professional and dedicated team is supporting you and they are flexible too.
Comparing Private Limited Company, LLP and OPC
| Factors of Comparison | Private Limited Company | One Person Company | Limited Liability Partnership |
|---|---|---|---|
| Minimum Requirement | Members – 2
Directors – 2 |
Member – 1 Director – 1 Nominee of Sole Member – 1 |
Designated Partners – 2 |
| Minimum Capital | No minimum requirement | No minimum requirement | No minimum requirement |
| Regulator | Registrar of Companies | Registrar of Companies | Registrar of Companies |
| Compliance Requirements | Annual Return Filing Board Meetings & General Meetings |
Annual Return Filing No Board Meetings, if only one director No General Meetings |
Annual Return Filing |
| Taxation | Taxed at 30% | Taxed at 30% | Taxed at 30% |
| Credibility | High | Medium | Medium |
| Investor Preference | High | Low | Medium |
| Statutory Audit | Compulsory | Compulsory | If Contribution > Rs 25lacs or, Turnover > Rs. 40lacs |
| Conversion | Can be converted into LLP | Cannot be converted before 2 years | Cannot be directly converted into a Private Limited Company |
| Time Taken for Registration | 15 – 20 Days | 10 – 15 Days | 15 – 20 Days |
| Procedure | Obtain DSC (Digital Signature Certificate) MoA & AoA, INC-32 Incorporation Filing PAN, TAN Applications |
Obtain DSC (Digital Signature Certificate) MoA & AoA, INC-32 Incorporation Filing PAN, TAN Applications |
Obtain DSC (Digital Signature Certificate) Obtain DPIN (Designated Partner Identification Number) Name Approval Filing for Incorporation File LLP Agreement PAN, TAN Applications |