Limited Liability Partnership as a business structure is governed by the Limited Liability Partnership Act, 2008. LLP registration in India is gaining popularity for starting a new business. The number of newly registered LLPs has outpaced the company registration in recent years.
The LLP structure offers the flexibility of a partnership firm and benefit of a limited liability offered under a private limited company registration. The LLP relatively has lower compliances and easy funds movement as compared to private companies. The Bizfoc professionals assist in LLP registration from start to end, which is completely online and hassle-free.
A limited liability partnership (LLP) is an alternative business structure that offers the partners limited liability of a company and a high amount of flexibility in collaboration. It is a hybrid business structure containing elements of both partnership firms and Company structure.
The LLP can continue its existence irrespective of partners coming and going and is capable of entering into contracts and holding properties in its name. It is a separate legal entity and is liable for its assets, and the liability of partners is limited to the amount they have invested in a firm. Most importantly, no partner is liable on account of the unauthorized actions of other partners. Thus, individual partners are protected from the joint liability created by another partner's misconduct and wrongful business acts.
The minimum requirement for LLP incorporation is as follows:
Here are the LLP registration documents, which are required and divided into two sections:
The procedure for the LLP registration are as follows:
The cost for LLP registration will be ₹6,499 which includes DSC making charges for two partners and professional charges but excluding GST charges.
Fees for LLP registration | Amount in ₹ |
---|---|
Professional Fee | ₹ 2,999 |
DSC Making Charges for 2 partners | ₹ 2,000 |
Government Fees & stamp duty | ₹ 1,500 |
Total cost | ₹ 6,499 |
Overall time taken to register the LLP in India is 7-10 working days.
Activities | Estimated Duration |
---|---|
LLP name approval | 2 to 3 working days |
DSC preparation | 1 working day |
Drafting LLP agreement and filing incorporation form | 2 working days |
LLP registration approval from MCA | 2 working days |
Once LLP registration is done, post-incorporation compliance and registrations will need to be done. We at BizFoc, with the help of its profound, highly skilled, and qualified professionals, guide you further and support you in fulfilling the post-incorporation compliance by LLP:
The benefits of LLP registration in India are covered below:
BizFoc is a trustworthy LLP registration consultant in India. BizFoc has a team of CAs, CS & lawyers who are experts in recommending the right business structure customised to your startup requirements. The team will guide you through the process, pros, cost, time taken, & post incorporation compliance for starting a new LLP. BizFoc provides services related to incorporation and accounting related compliance under one umbrella so that you can focus on growing your business and making it successful.
Every partner of an LLP would be, for the business of the LLP, an agent of the LLP but not of the other partners. Liability of partners shall be limited except in case of unauthorized acts, fraud, and negligence. But a partner shall not be personally liable for the wrongful acts or omission of any other partner. The liabilities of the LLP shall be met out of the property of the LLP.
For the LLP registration, no minimum capital is required; it can be incorporated with the least possible capital
Yes, an existing partnership firm can be converted to an LLP; you need to comply with the provision of clause 58 and Schedule II of the LLP Act, 2008. You need to file Form 17 along with Form 2 for the conversion and LLP registration.
Each partner must inform LLP regarding any changes made in his name or address within 15 days of such change. The partner needs to file Form 4 and notify the RoC within 30 days of such changes.
The LLP registration involves approval of name, making DSC for the proposed designated partners, making LLP agreement and form submission with MCA. You can visit BizFoc.com for more details.
Here are specific steps that need to be followed to check the status of LLP registration online:
Yes, an LLP can appoint a CEO to manage the internal affairs of the company.
GST requirement for LLP is based on turnover and the services or goods that LLP offers. It is not a mandatory requirement.
Yes, partners can withdraw money from the LLP as per the terms and conditions mentioned in the LLP Agreement.
An NRI can serve as a designated partner in an LLP, provided they possess a Designated Partner Identification Number (DPIN). However, it's important to note that at least one designated partner in the LLP must be a resident Indian.
Yes, FDI is allowed in LLPs, subject to conditions. FDI is permitted for LLPs which are operating in sectors where 100% FDI is allowed under automatic route.
In LLP, there is no concept of equity. In LLP, only partners can contribute; hence, it can't raise funds from the public.
LLP audit is mandatory when turnover exceeds 40 lakhs, or the contribution of partners exceeds 25vlakhs
Yes, all LLPs, irrespective of turnover and business, are required to file annual forms with MCA annually
Every partner of an LLP would be, for the business of the LLP, an agent of the LLP but not of the other partners. Liability of partners shall be limited except in case of unauthorized acts, fraud, and negligence. But a partner shall not be personally liable for the wrongful acts or omission of any other partner. The liabilities of the LLP shall be met out of the property of the LLP.