Limited Liability Registration
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Limited Liability Partnership Registration
Everyone wishes to set up their business and Companies in India. But do you know that there is a registration process to follow for the commencement of company/business. LLP Registration is most popular in India now days amongst budding entrepreneurs. Who wishes to start their business in limited budget. Now you will get to know that what it is, eligibility criteria, steps of registration, documents and much more.
What is LLP?
LLP is a Limited Liability Partnership. It is a combination of both Company & Partnership. Basically, it is a partnership wherein all partners have restricted liabilities. This considered as easy incorporate because not all partner is liable for any other partners’ wrong conduct or carelessness. Moreover, everyone is responsible for their misconduct & happening.
The Limited Liability Partnership registration executed in India in January 2009. And have been a great success for all the professional services and startups. As of the best part is all the registrations are regulated and governed by the Limited Liability Partnership Act, 2008. LLP was introduced to offer a form of business benefits such as easy to maintain and to assists partners by providing them with limited liability. To register LLP, one requires all the mandatory documents form fill-ups and then forward it to Registrar of Companies office. They approve of the application. The LLP Registration takes about 7-8 working days. LLP formation is one of the easiest types of companies to incorporate in India. Because of its easy formation and easy compliance formalities it is eligible for MSMEs and Professionals. Therefore, Apply Today and save more than 50% cost than regular. But what it is a requirement or eligibility criteria for its registration.
Requirements to Register an LLP
- Minimum 2 Partners (18 years and above age)
- No Capital Requirement
- At least one Designated Partner as Indian Resident
- DPIN for all Partners
What we provide in Package?
- Name Approval
- MCA Registration
- PAN of LLP
- TAN of LLP
- Two directors DPIN
- Certificate of Incorporation
- Two directors Digital Signature Certificate
- Bank Account opening Assistance
- Post Registration Support
- CA Services Support
Advantages of LLP company registration
The LLP company registration does offer numerous benefits but the main benefit which as the owner is the legality. So, let’s have a look over the benefits of registering LLP.
- Legal Identification:
LLPs are administered as separate legal entities. So, the partners and LLP are different from all others in the eyes of the law. So, according to LLP rules, no partner is responsible for other partner misconducts.
- Minimum Capital requirements:
Registration offers a benefit of no minimum capital requirements to commence an LLP firm registration and its incorporation.
- Count of partners:
The least amount of members require to incorporate the LLP company are 2. But there is no limit to maximum number of partners.
- Taxation Benefits :
Limited liability partnership is free from various taxes such as dividend distribution tax (DDT) and minimum alternative tax. However, the rate of tax on LLP is lighter than the other company.
- Transfer of ownership is easy:
There are no barriers upon joining and leaving LLP. It is easy to introduce a partner and leave the firm or transfer of ownership. So, No long procedure and documentation submission requires in LLPs.
Auditing of LLP in India is needed only if the contribution passes 25 lakhs or yearly turnover passes 40 lakhs.
Documents required for LLP formation
- ID (Identity proofs) of all the designated partners.
- Copy of the PAN card of all the designated partners.
- Passport size photograph of all partners
- Copy of Aadhaar Card/ Voter identity card/ Driver’s license as address proof
- Utility Bill like Electricity/ Water bill/ Telephone bill/ Latest bank statement as proof of Registered Office (Business Place)
- Copy of Sale Deed/Property Deed (If owned property)
- A No-Objection Certificate (NOC) from the landlord of the location of your registered office.
- A copy of the rental agreement.
- Passport (For Foreign Nationals/ NRIs)
- Get your DSC (Digital Signature Certificate)
- Copy of NOC from the property owner
All of the above are main and important LLP formation documents. But there are some forms that need be to fill up before submission of documents to the Registrar.
LLP registration form
- RUN – LLP (Reserve Unique Name-Limited Liability Partnership): A form for reserving a name for the LLP
- FiLLiP (Form for incorporation of Limited Liability Partnership) – A Form for incorporation of LLP
- Form 3(Registration of Agreement with MCA)- Form 3 need to file for the purpose of registration of LLP Agreement.
Steps Involved in Registration
There are 5 Simple steps of Fssai online registration,
- Step 1: Apply for Digital Signature Certificate (DSC)
Before beginning the process of registration, you must register for the DSC of the partners of the LLP. Filling for DSC is necessary because LLP registration is made online. So, online processing asks for a digital sign. So, the LLP partners need to get the DSC from government-approved certifying companies.
- Step 2: Apply for DIN & DPIN
After DSC application completion look to file for the Application of DIN (Director Identification Number) and DPIN (Designated Partner Identification Number). Within a time duration of 5 to 7 working days. The application for allotment of DIN must comply with Form DIR-3. You have to attach the scanned copy of Aadhaar and PAN to the form. The form requires signatures of Company Secretary in full- time employment of the company. Even, the Managing Director, Director or CEO of the existing company in which the applicant introduces as designated director.
- Step 3: Name Approval & Reservation with ROC
LLP-RUN needs to certified for the reservation of the name of proposed LLP. Even, this is additionally treated by the Central Registration Centre under Non-STP. However, before circulating the name in the form, it is recommended to search the name’s existence. The limit for names for LLP is 1-6 words given to the MCA. The registrar will approve the name only if the name is meaningful in the eyes of the Central Government. Note: The Name approval process will take 1 to 2 working days. Even, re-submission of the form is made 15 days in case of rejection(provisions are subject to change by government time to time).
- Step 4: MOA & AOA submission
So, After the name approval, one needs to draft the Memorandum of association and Articles of Associate. Both MOA and AOA files with the MCA with the agreement statement.
- Step 5: Get Incorporation Certificate of LLP
The incorporation is FiLLiP that registers with the Registrar who has control over the state in which the certified office of the LLP is established. Incorporation documents can be given to the MCA along with an application for incorporation. Incorporation certification is a sign that the company has been commenced. It also includes your CIN number. All the above are important documents. But, After LLP Registration there are 2 steps one must follow.
Difference between LLP and Pvt
|No.||Basis Of Difference||Private Limited Company||Limited Liability Partnership|
|1||Meaning||Private Limited Company is separate legal entities following the usual series, with a benefit of limited liability for its shareholders.||In register an LLP its described a partnership is where all partners have limited liabilities including every partner is not liable for another partner’s mischief.|
|2||Requirements for compliance||Annual return filing borad meetings and general meetings. They are atleast 4 meetings in a year.||Much easier Annual return filing and Statement of Account & Solvency only.|
|3||Audit||All Companies are expected to get their accounts audited yearly.||Accounts audited only if their yearly turnover exceeds Rs. 40 Lakhs or contribution amount exceeds Rs. 25 Lakhs.|
|4||Taxation||The PVT company is liable to pay income tax based on their turnover id up to Rs.250 crore is 25% and more than Rs. 250 crore 30 % is paid.||LLP is responsible to pay income tax at 30%.|
|5||Winding Up Companies||Winding up of a company is administered by Insolvency and Bankruptcy Code and it is a very long process as compared to LLP.||For the binding up of LLP online, the procedure is less complicated. Just declare it defunct and wrap up the mutual decision of all.|
Benefits in LLP over Private Limited
There are 5 Simple steps of Fssai online registration,
- 1. Ownership
In LLP Registration and private limited company both require 2 partners. But the basic advantage of choosing LLP is it never has limits in the maximum number of members like in private company (200 members maximum)
- 2. Advantages in compliances
Generally, at least 8-10 compliances per annum are expected to be made by a private limited company. Whereas an LLP company registration is expected to file only the Annual Return and a Statement of Accounts and Solvency.
- 3. No need for compulsory auditing
In a private or public company despite their share capital they are asked to get accounts audited every year. But in LLP there is no mandate for doing so, as per terms of LLP act accounts that are audited which are having Rs.25 lakh-Rs.40 lakh yearly turnover contribution in any of financial year.
- 4. Taxation on LLP over PVT
30% of the Income-tax rate is eligible for LLPs in the case exceeds Rs. 1 crore pay 12 % surcharge in the income tax. The PVT company is liable to pay income tax based on their turnover id up to Rs.250 crore is 25% and more than Rs. 250 crore 30 % is paid. Plus, Rs.1 crore- Rs.10 crore surcharge is 7% and more than Rs.10 crore 12 % is chargeable.
- 5. Transferability
The shares can be transferred only by administering a signed agreement before the official public at the time of LLP formation. There is no agreement among the shareholders winding up either on the company or on the shareholders. The transfer of shares can only be limited by AOA.
Qualities of LLP
- To register LLP the first quality is found of Limited Liability the person is not liable for anyone’s misconduct.LLP firm registration is deemed to be a combination of a partnership and a corporation.
- Limited liability partnership registration offers such benefits that new startups or businesses prefer it more because of their liquidation or losses partners are asked to pay the amount they agree. here personal assets are saved and secure.
- Documents required for LLP formation like “LLP Agreement” and forms registered for details of partners are not publically accessible. This is one of the factors to make LLP registration online success nowadays.
- In the LLP registration process, every partner of LLP must have a valid DIN number that is not compulsory for partnership firms.
- Setting your business as a limited liability company takes added credibility. An LLP is known as a more formal business structure than a sole proprietorship or partnership.
Post- Registration Steps
- 1) Apply for PAN, TAN and Bank account: After Getting an Incorporation certificate do apply for PAN and TAN. Moreover, you can submit the Incorporation certificate, MOA, AOA for PAN, TAN with the bank for opening your bank account.
- 2) Must Register for LLP Agreement: LLP agreement commands the mutual rights and responsibilities among the LLP and its partners. The agreement must register in Form 3 that files in 30 days of the date of incorporation.
How LegalPillers support you?
In conclusion, Registering LLP is important to give legal recognition in the eyes of law. It offers various benefits as it is a separate legal entity. Therefore, we have discussed all the documentation required, the procedure in detail to make you understand that online registration is much more comfortable. Do Apply Today for all the registration services. We look forward to simplifying your registration process along with the CA services. For LLP Registration do contact us at 9625279785 or 9267941961 or you may write [email protected].
Frequently Asked Questions
- Minimum Two Partners
- Registered Office Address
- Legal Business
- Legal Agreement
- Apply for DSC with DIN for Partners.
- Name approval from MCA
- Making LLP Deed and Legal document.
- Apply with Incorporation Forms upload to ROC.
- Receive your Incorporation Certificate with PAN & TAN
- ID proof & Address Proof
- Passport size photos
- DSC of all partners
- Utility bills like telephone, electricity, water bill of the registered office
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