Finsure Consultants - LLP Registration

If we look back before some years ago there had no concept of a Limited Liability Partnership. At that time was only a concept of which was Partnership Firm. But from a long time back it was observed that a huge demand been arisen for a business concept that combines the concept of a Partnership Firm with the benefits of the Limited Liability of a Private Limited Company which can provide low cost of compliance. At that time concept of LLP was bought to replace the limitations of Partnership Firms and the difficulty of Companies. By this concept, the small and medium business structure would be more beneficial as well as also it would be beneficial for businesses in the service sector. In India, this concept of LLP was first introduced in the year 2008 under the provisions of the Limited Liability Partnership Act 2008 laid down by the Indian government.

Now a days, this concept is becoming a very popular choice for most of the entrepreneurs as it gives advantages of both concepts i.e., a Partnership Firm and a private limited company. We can say this concept is giving a way to the partnership firms along with private limited companies to merge into a single window. The main requirement of this concept is a minimum of 2 partners to form the LLP and one person between of them must be an ordinary resident of India. There have no boundation or limitation of partners in the LLP concept. The LLP agreement governs the rights and responsibilities of designated partners. They are directly responsible for ensuring that all provisions of the LLP Act, 2008, and the LLP agreement are followed. As we have discussed above a limited liability partnership provides to its members the bulk of benefits of a company’s limited liability along with allowing them to manage their internal operations & management like a partnership firm.

In terms of liability under a Limited Liability Partnership, only the company is liable for all the losses or debts incurred during the business.

The entire process of registration Limited Liability Partnership (LLP) is quite simple and time-saving. You can understand the process from the following workflow:

Once the process of registration of the company is complete, you can now start the process to open a Current Bank Account at any of your nearest and suitable banks by submitting current bank account opening forms provide by your bank with the attachment of a copy of your Company Incorporation Certificate, Company MOA, Company AOA, Company PAN, Director’s KYC and a Board Resolution containing of opening a bank current account. This entire process of the registration of a Private Limited Company is so easy and so simple with us by making three steps as 1, 2, 3. Fill out the Enquire Now form below to get the process completed as early as smooth. Still, if you have any doubts in your mind you can get a free consultation with our team of expertise regarding its entire process and fees.

For the registration of a Limited Liability Partnership under the Limited Liability Partnership Act, 2008 make sure to follow the key points mentioned below to ensure a smooth and fast-paced Limited Liability Partnership Registration Process:

No. of Partners: Minimum 2
All designated partners must have a DPIN.
For all designated partners, DSC is required.
A unique and meaningful name for online LLP registration.
The Profit/ Loss ratio must be according to the contribution in the LLP.
Proof of Registered Office of LLP like Electricity Bill/ Utility Bill or Mobile Bill.
LLP Deed is to be prepared in which all the terms and agreements is to be decided by the Partners.
Passport-size photograph
Blank document with specimen signature.
Notarized rental agreement in English
No-objection certificate from the property owner

The main advantage of an LLP is that LLP is easier to start and manage and the process has fewer formalities.
It has a lesser cost of registration as compared to a Company.
LLP is like a corporate body having a separate existence other than its partners.
LLP can be started with any amount of minimum capital.
The partners would have limited liability to their agreed contribution in the LLP.
No requirement for compulsory Audit.
Compared to Private Limited Company, the annual ROC compliance in LLP is lesser.
Owing to flexibility in its structure and operation, the LLP is a suitable vehicle for small enterprises and for investment by venture capital.
The cost of LLP registration is quite less ranging from Rs. 500 to Rs. 7000.
LLPs benefit from a number of tax advantages. They are also exempt from mandatory audits unless their annual revenue exceeds 40 lakhs.

1. What is a Limited Liability Partnership?

As per clause (n) of section 2(1) of the Limited Liability Partnership Act, 2008, (hereinafter referred to as the “Act”), a “limited liability partnership” means a partnership formed and registered under this Act.

2. A limited liability partnership firm is governed under which law?

The formation and regulation of limited liability partnerships is governed by Limited Liability Partnership Act, 2008 and the rules made thereunder i.e. Limited Liability Partnership Rules, 2009, (hereinafter referred to as the “Rules”).

3. What is the minimum number of partners required to start LLP?

A minimum two partners are required to start an LLP.

4. How can I get an LLP registered in India?

To register a Indian LLP, you need to first apply for a Designated Partner Identification Number (DPIN), which can be done by filing eForm for acquiring the DIN or DPIN. You would then need to acquire your Digital Signature Certificate and register the same on the portal. Thereafter, you need to get the LLP name approved by the Ministry. Once the LLP name is approved, you can register the LLP by filing the incorporation form.

5. Is there any government fees to register LLP in India? How much does it cost?

Following are the details of the fees levied by the Government for the registration of LLP.

Digital signature (DSC) – Rupees 1500-2000 (Depending on the Agency)
Apply for Director Identification Number (DIN) – Rupees 1000 for two partners
Get the name of the company approved through ‘Reserve your Unique Name’ service (RUN) – Rupees 200
Incorporation of LLP- Depends on capital contribution: Contribution up to Rs. 1 lakhs – Rs. 500, Contribution between Rs. 1 and 5 lakhs – Rs. 2000
File ‘Limited Liability Partnership Agreement- Depends on capital contribution. Contribution up to Rs 1 lakhs – Rs 50 for filing Form 3 and stamp duty based on the state where LLP is formed

6. Who can be a partner in an LLP?

The partners of an LLP can be individuals and/or body corporates. An LLP can also be a partner in another LLP. In addition, an individual who is a partner in an LLP must not: be declared to be of unsound mind by the court; be an undischarged insolvent, or have applied to be adjudicated as an insolvent.

7. What are the documents required to be filed by an LLP annually?

An LLP is required to file a statement of account & solvency in Form 8 and an annual return LLP in Form 11 annually. The annual return is required to be filed within 60 days of the close of the financial year and the statement of accounts & solvency shall be filed within 30 Days from the end of six months of the financial year to which it relates.

8. What is Designated Partner Identification Number (DPIN) ?

Designated Partner Identification Number DPIN is an identification number issued by the Ministry of Corporate Affairs, Government of India, to the Designated Partners of an LLP. For obtaining DPIN, an online application has to be submitted to the Ministry of Corporate Affairs with a copy of the Identity and Address Proof of the Applicant digitally signed by the applicant and also to be signed by a Practicing Company Secretary / Chartered Accountant / Cost Accountant.

9. Who is a partner of an LLP?

A partner in relation to an LLP means any person who becomes a partner in the liability partnership in accordance with the LLP agreement.

10. Who is a Designated Partner?

A designated partner of an LLP means the partner who is responsible for carrying out all acts and things that are required for the functioning of the LLP in respect of compliance with the provisions, filing of documents/returns/statements under the LLP Act, and things as may be specified in the LLP agreement. An LLP should have a minimum of two designated partners who are individuals and at least one of them should be residents in India.