LLP was introduced as an amendment which allows business owners to start business setups which are easy to maintain and have limited liability. Limited Liability Partnership Act of 2008 governs all the Limited Liability Partnerships (LLPs) in India.
It is an easy way to setup a business, however, one of the biggest concern and time consuming task is naming the LLP. The government has set some stern rules and regulations which makes it complicated.
- Unlike conventional partnership setups, LLPs enjoys limited liability. Partner can limit their liabilities according to their capacity. (This is the main reason why people choose LLP rather than partnership Firm)
- LLP registration compliance and procedures are simple and the entire process can be completed within 15-20 days.
- You will get benefit of perpetual succession that means LLP will continue forever. Its existence will not get affected by death, retirement, insanity of one or more partners in LLP.
- A proper agreement signed by all the partners, with detailed terms & conditions including profit sharing ratio and terms can be flexibly decided by partners.
- LLP can easily be converted into Pvt Limited and in a similar way, Pvt limited company into LLP
- There is no limitation on Partners in LLP; you can add limitless partners in LLP.
- Lending & funding options are easy for LLP firm, as their compliance verified from day 1 and mostly banks trusts LLP firms.
- Its registration is easy and all registration formats will work under e-filing options. Hence, its most transparent registration option.
- Partners are the real owners of the business and there is no concept of directors in this model.
- Partner’s personal assets are totally protected in this model, if in any case business becomes bankrupt.
- You can create LLP with NRI, Foreigner, or any Business entity. This option is not available in Partnership Firm format.
- Proper Digital signatures & DPIN are created in LLP, without digital signatures nothing will start.
- You can start your LLP firm with your home address; there is no need to have commercial space for registration in LLP format.
- FDI is allowed in LLP, as foreigners can invest directly through Automatic Format of LLP. (advisable according to country)
1. Obtain Digital Signatures
2. Reserve your Company Brand Name
3. Submission of MOA & AOA of Company
4. Get your Business Incorporation Certificate
5. Get Company’s PAN & TAN
- You have to apply with unique name of LLP, previously registered brand names would not allow you to take even resembling words. It should be non-offensive or not related to any business name. We will help you by taking up your name of company.
- Its creation & maintenance cost is slightly higher than creation of partnership firm. Ministry of Corporate affairs is the authority of handling LLP Matters.
- It’s difficult to get funding from Angel Investor, Private Equity Funds and Venture Capitalist, though LLP can apply funds through Banks, NBFC and from its Partners. Investment model generally opt Private Limited Company option.
- You have to fulfil all compliance of MCA, Income Tax & GST authorities if applicable.
- There is no specific capital requirement to register your LLP firm in India. You can start it with just Rs. 10,000. Though you have to take authorized capital of Rs. 1,00,000.
- Partner can design flexible Partnership agreement, where they can secure their liability & roles in firm.
Documents depends on whether the business is on lease or owned, and if there is any necessity of license or registration in your business model. Though some basic documents are always required for registering an LLP firm in India.
Latest Passport Size Photograph of All Partners
PAN Card of All Partners
Aadhar Card of All Partners
Passport Copy of all Partners (If they Have)
Residence Proof of all Partners
Electricity Bill or Any Other Utility Bill for the
Rental Agreement or Sale Deed of Business Place
- We deliver end to end consultation before you accept this model of creation for your start-up. How taxes impact you, etc. We will absolutely guide you on registration & licenses which are required with this option, for example, MSME & Trademark prominence in registering an LLP Firm in India.
- We are specialised in MCA Matters and we will draft the matters & terms in most legal form. FDI & Foreign Partner Investment are the difficult approval procedures in LLP, we will consult you on every step of it.
- Also, we handle all the compliance work beginning from managing accounting work, GST return filings, income tax matters and annual audits if Applicable.
- We will constantly support you on all monetary needs of the organisation and assist you according to the requirement.
- Generally, it takes 10 to 15 days procedure for registering this business model & further it depends all on the Authorities & requirements of client.