LLP Registration in Srinagar: Documents required, Process, Time Taken, and Fees

Limited Liability Partnership as a business structure is governed by the Limited Liability Partnership Act, 2008. LLP registration in Srinagar 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.

What do you mean by a limited liability partnership?

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.

Eligibility for LLP registration in Srinagar

The minimum requirement for LLP incorporation is as follows:

• Two partners are minimum
• Out of all partners, two minimum designated partners are required. A corporate body cannot be a designated partner.
• One partner must be a resident of the country where LLP is to be incorporated
• LLP must have a registered office address
• LLP must have business purposes
• There is no minimum and maximum contribution defined in law. However, LLP should be incorporated with some contribution.

Documents required for LLP registration

Here are the LLP registration documents, which are required and divided into two sections:

1. Address proof of the registered office:

   1. Copy of a utility bill (electricity bill/Gas bill/Water bill/Broadband bill) that is not less than 2 months old. The registered office of the company can be commercial or residential. The utility bill should have the complete address of the premise.
   2. NOC from the owner of the property
   
   

2. Documents for Partners:

   1. Aadhaar Card and PAN card of each partner
   2. Copy of proof of partner’s residence - current bank statement or utility bill in the name of director, which includes the electricity bill, gas bills, broadband/telephone bill, etc., and not older than two months. Proof should have the complete address.
   3. Passport-size photo of partners.
   4. In the case of NRIs or foreign nationals, a passport copy is mandatory
   5. Note: If documents are not in english, then a notarized or apostilled transaction copy shall be attached.

Documents issued after LLP incorporation:

• Certificate of LLP incorporation
• PAN and TAN number of the LLP
• Digital signatures of all Partners in physical tokens
• DIN number of all Partners
• Notarised LLP agreement
• Complete set of various forms and challans filed with MCA

Compliances of post LLP registration

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:

• Opening a bank account in the name of an LLP firm
• To Conduct Board Meetings and pass resolutions appointing authorized signatories in LLP to do necessary filings
• Obtaining necessary registrations like Trademark, GST, Shop Act, IEC, etc
• File annual returns and financial statements, such as maintaining balance sheets, cash flow statements, and profit and loss statements, and look after the LLP’s financial health.

Fees for LLP registration in Srinagar

The cost for LLP registration will be ₹6,499 which includes DSC making charges for two partners and professional charges but excluding GST charges.

Process for LLP registration

The procedure for the LLP registration are as follows:

1. Name Reservation: The first step for LLP registration is to select a unique name and availability of the proposed name can be checked from the MCA Portal and trademark website. The proposed name is filed using RUN-LLP (Reserve Unique Name-Limited Liability Partnership) form.
   The name will be approved by the Registrar only if there are no trademarks and a similar LLP or company name exists. If the Registrar has disapproved the name for LLP registration, then there is an option of resubmission of the form within 15 days to rectify the errors.
   The name of the LLP shall end with either 'Limited Liability Partnership' or 'LLP.'
2. Obtain a Digital Signature Certificate (DSC): Obtaining a class 3 DSC of all partners is a significant part of LLP registration. As the online LLP registration has to be done, all documents will be uploaded online along with the digitally signed ones. If any partner has a valid DSC, then there is no need to apply further, and the same DSC can be used. DSC is downloaded in physical tokens similar to pen drives.
3. File LLP Incorporation form: For the LLP registration, FiLLiP (Form for incorporation of Limited Liability Partnership) is filed with the Registrar of the respective jurisdiction. The following documents and information are attached to the incorporation forms.
   1. Details of all Partners
   2. KYC documents of all Partners
   3. Register office proof along with NOC
   4. Consent form of all Partners
   5. Certification by Practicing CA/CS
4. Submit the Agreement of LLP: The LLP agreement governs the mutual rights and duties of partners inter se and those of the LLP and its partners. The form has to be filed mandatory within 30 days of the date of LLP registration. LLP agreement must be filed in Form 3 online on MCA Portal.
   The LLP agreement has to be signed and notarized on stamp paper, as per the stamp duty that the state government prescribes. For instance, in the case of Srinagar, the stamp duty for LLP registration will be 1% of capital contribution (minimum ₹200 and maximum it will be ₹5,000) whereas in Gurgaon (Haryana), the stamp duty for LLP registration is ₹1000 fixed.

Time Taken for LLP Registration in Srinagar

Overall time taken to register the LLP in Srinagar is 7-10 working days.

Advantages of LLP registration

The benefits of LLP registration in Srinagar are covered below:

• Organized Business Structure: LLP is an organized business structure approved by the government body. Bankers and creditors prefer it due to its transparency of financials.
• No Minimum Capital Requirement: LLP doesn't not require any minimum capital to start a business, as they can be established with the least possible capital.
• Limited Liability of Partners: LLP partners have limited liability, which depends on their contribution. It means they are not liable to pay out from their assets because, during winding up and insolvency, only LLP's assets are liable to repay debts.
• Higher Flexibility: As compared to other corporate structures, the LLP provides high flexibility to withdraw funds and take unsecured loans from third parties. Functions and profit distribution are written under the agreement between the partners of the LLP. It leads to flexibility in the business management system.

BizFoc: LLP registration consultant in Srinagar

BizFoc is a trustworthy LLP registration consultant in Srinagar. 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.

Conclusion

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.