Limited Liability Partnership (LLP) Registration
LLP is a smart choice for professional services firms, and small and medium sized enterprises going for Partnership. Under LLP, two or more partners form a partnership and it is registered as per Limited Liability Partnership Act, 2008
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Deliverables
DSC of 2 partners
DPIN for two partners
Name reservation for LLP registration
Drafting of LLP Agreement with respect to objective of your business
LLP Identification number
PAN and TAN of your firm
Free call by our expert about the compliance requirement after LLP registration in India
LLP Act
Limited Liability Partnership Act, 2008
Limited liability partnership (LLP) is an incorporated partnership formed and registered under the limited liability partnership act, 2008(“The Act”) with limited liability and perpetual succession.
LLP is yet another form of business organization in India. Other being sole proprietorship, partnership, company etc. It is a suitable form of business organization for small and medium enterprises.
A limited liability partnership (LLP) is a body corporate formed and incorporated under the Limited Liability Partnership Act, 2008. It is a legally separated entity from that of its partner.
An LLP is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP. Since liability of the partners is limited to their agreed contribution in the LLP, it contains elements of both a corporate structure as well as a partnership firm structure. There is no personal liability of a partner except in the case of a fraud. Moreover, a partner is not responsible or liable for another partner’s misconduct or negligence as there is no joint liability in the case of LLP.
Features
The Main Features of LLP
LLP is a body corporate and legal entity separate from is partners. The LLP has a perpetual succession.
The right and duties of partners of an LLP and those of the LLP and its partners shall be governed by an agreement between partners or between the LLP and the partners.
The liability of the partners are limited to their agreed contribution in the LLP which may be tangible or intangible in nature or both tangible and intangible in nature.
LLP shall maintain annual accounts reflecting true and fair view of its state of affairs. A statement of accounts and solvency shall be filled by every LLP with the register every year.
The central government has power to investigate the affairs of an LLP, if required, by appointment of competent inspector for the purpose;
The Indian partnership Act, 1932 shall not be applicable to LLPs
Every LLP shall have at least two partners and shall also have at least two indviduals as designated partners, of whom at least be resident in India.
Advantages
Advantages of Limited Liability Partnership
Easy to form
Liability
Perpetual succession
Management of the company
Easy transferability of ownership
Taxation
No compulsory audit required
Disadvantages
Not covered all states
Less credibility
Partners not consulting
Transfer of interest
Lack of recognition
All you need to know
LLP Registration, a prime reason why it has evolved is that of its simplicity in a formation and easy maintenance. It helps owners also to limit their liabilities. This is the biggest advantage of an Limited Liability Partnership over a traditional partnership firm.
Incorporating LLP Company has both Limited Liability features of a Private Limited company and the flexibility of a Partnership firm. No partner is liable on account of unauthorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s misconduct. LLP form of organization is usually preferred by Professionals, Micro and Small businesses that are family owned or closely-held.
LLP registration procedure is the easiest and transparent process as it has a blend of the benefits of a company and partnership firm namely, limited liability feature of a company and the flexibility of a Partnership firm. Procedure of LLP registration is not lengthy as you can file your incorporation form online. Online LLP registration procedure will save you a lot of time and energy. LLP registration process includes following steps:
- Get a digital signature (DSC)
- Apply for Director Identification Number (DIN)
- Get the name of the company approved
- Incorporation of LLP
- File ‘Limited Liability Partnership Agreement’
Process
Steps to register a LLP
Two or more persons associated for carrying on a lawful business with a view to profit shall subscribe their names to an incorporation document following are the steps to be followed
Acquire / register DSC
Application for DIN or DPIN
All designated partners of the proposed LLP shall obtain “Designated Partner Identification Number (DPIN)”. You need to file e-form DIR-3 in order to obtain DIN or DPIN. In case you already have a DIN (Director Identification Number), the same can be used as a DPIN.Incorporate LLP
Apply for the name of the LLP registered by filling E-form 1
According to section 15(1), every limited liability partnership shall have either the words “limited liability partnership” or acronym “LLP” as the last word of its name.
After the name gets approved, the incorporation document shall be filled in Form 2.
It shall state the name, proposed business, address of the registered office of LLP. It shall further state the name and address of the partners designated partners of the LLP and such other information may be required.
File LLP Agreement
After incorporation of LLP, an initial LLP agreement is to be filled within 30 days of incorporation of LLP in form 3.
Any change in the LLP agreement is also required to notified to the registered of companies.