Limited Liability Partnership/ Llp Registration In India

A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. As the name suggests partners have limited liability in the company which means that personal assets of the partners are not used for paying off the debts of the company. Nowadays it has become very popular form of business as many entrepreneurs are opting this. There are a number of partners in the firm and hence they are not liable or responsible for others misconduct. Everyone is liable for their own acts. All limited liability partnership is governed under the limited liability partnership act of 2008.

However, in India LLP was introduced in April 2009. Limited liability partnerships are distinct from limited partnership in some countries, which may allow all LLP partners to have limited liability, while a limited partnership may require at least one unlimited partner and allow others to assume the role of a passive and limited liability investor. As a result, in these countries, the LLP is more suited for businesses in which all investors wish to take an active role in management. LLP has a separate legal entity, liable to the full extent of its assets, the liability of the partners would be limited to their agreed contribution in the LLP. Further, no partner would be liable on account of the independent or unauthorized actions of other partners, thus allowing individual partners to be shielded from joint liability created by another partner’s wrongful business decisions or misconduct.

Advantages

 Renowned and accepted form of business worldwide in comparison to Company.

 Low cost of Formation.

 Easy to establish.

 Easy to manage & run.

 No requirement of any minimum capital contribution.

 No restrictions as to maximum number of partners.

 LLP & its partners are distinct from each other.

 Partners are not liable for Act of partners.

 Less Compliance level.

 No exposure to personal assets of the partners except in case of fraud.

 Less requirement as to maintenance of statutory records.

 Less Government Intervention.

 Easy to dissolve or wind-up.

 Professionals can form Multi-disciplinary Professional LLP, which was not allowed earlier.

 Audit requirement only in case of contributions exceeding Rs. 25 lakh or turnover exceeding Rs. 40 lakh.

Disadvantages

 Any act of the partner without the other partner, may bind the LLP.

 Under some cases, liability may extend to personal assets of partners.

 Cannot raise money from Public.

Send Your Query

    STEPS FOR LLP REGISTRATION IN INDIA:

    1. Name Reservation:

    Choose a unique name for the LLP. Check the availability of the name on the Ministry of Corporate Affairs (MCA) website.

    Once you have a unique name, file an application for name reservation through the MCA portal.

    2. Digital Signature Certificate (DSC) and Designated Partner Identification Number (DPIN):

    Obtain Digital Signature Certificates for the proposed partners.

    Obtain Designated Partner Identification Numbers (DPIN) for the partners.

    3. LLP Agreement Drafting:

    Draft the LLP agreement, specifying the rights and obligations of the partners, profit- sharing ratio, etc.

    4.Filing of Incorporation Documents:

    Prepare and file the incorporation documents, including the LLP agreement, with the Registrar of Companies (RoC).

    5. Payment of Fees:

    Pay the prescribed registration fees to the RoC.

    6. Issuance of Certificate of Incorporation:
    If the Registrar is satisfied with the documents, they will issue the Certificate of Incorporation.

    7. PAN and TAN Application:
    Apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the LLP.

    8. LLP Agreement Submission:
    After incorporation, submit the LLP agreement to the RoC within 30 days.

    9. Compliance and Filings:
    Comply with ongoing filing requirements, such as annual returns and financial statements, as per the LLP Act.

    Note:

    The process may evolve, and it’s crucial to check for the latest regulations and requirements on the Ministry of Corporate Affairs (MCA) website or consult with a webetax professional.

    Additional Tips:

    Stay updated on changes in law and compliance requirements. Engage with webetax professional as we are specializing in company registration for accurate guidance.

    Keep in mind that the above steps provide a general overview, and the specific requirements may vary based on the nature of your business and any updates in regulations. It’s recommended to consult with webetax professionals or legal experts for personalized
    guidance.

    We are Happy to serve you the best.

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