Limited Liability Partnership (LLP) Registration
LLP was launched in India by way of the Limited Liability Partnership Act, 2008. The main edge of a Limited Liability Partnership is one partner is not liable for another partner’s misconduct or negligence. LLP is favoured by Professionals, Micro and Small businesses that are family-owned or closely-held.
Limited Liability partnership offers the benefit of limited liability to its owners and at the same time needs minimal maintenance. The owners of a private limited company have limited liability to creditors. In case of default, banks/creditors can only sell the company’s assets and not the personal assets of directors.
An LLP also gives limited liability protection for the owners from the debts of the LLP. Accordingly, all partners in an LLP enjoy a kind of limited liability protection for every individual’s protection within the partnership, related to that of the shareholders of a private limited company.
LLP Registration can be done through TaxSup in Delhi NCR, Mumbai, Bengaluru, Chennai and all other Indian cities.
Why Choose LLP ? [ Benefits ]
- Dual advantages- Company and a Partnership
- No partner will be responsible for other partner’s misconduct
- Cheaper to incorporate than a private limited company
- Limits the liabilities of its partners
Step 1: Digital Signature Certificate (DSC)
Before starting the process of registration, you must enrol for the DSC of the designated partners of the proposed LLP. Applying for DSc is important because the registration process of LLP is done online and requires to be digitally signed.
So, the LLP partners must get the DSC from government-approved certifying agencies.
Step 2: Application of DIN (Director Identification Number) and DPIN ( Designated Partner Identification Number)
After applying for DSC the next step is to enroll for DPIN and DIN application for the proposed Partners of the LLP. Within a timeframe of 5 to 7 working days, DPIN and DIN. The application for allotment of DIN has to be made in Form DIR-3. You have to add the scanned copy of Aadhaar and PAN to the form. The form needs to be signed by a Company Secretary in full- time employment of the company or by the Managing Director, Director, or CEO of the existing company in which the candidate shall be designated as a director.
Step 3: Name Approval and Reservation with ROC
LLP-RUN i.e. Limited Liability Partnership-Reserve Unique Name needs to register for the reservation of the name of proposed LLP. This is further treated by the Central Registration Centre under Non-STP. But before circulating the name in the form, it is suggested that you use the free name search facility on the LegalRaasta portal. The system will give the list of exactly resembling names of existing LLPs. 1-6 is the limit proposed names are expected to be given to the MCA. The registrar will approve the name only if the name is not useless in the opinion of the Central Government and does not match any existing partnership firm or an LLP.
The Name approval process will take 5 to 7 working days. A re-submission of the form is made15 days in case of rejection.
Step 4: MOA & AOA submission
Once the name is approved, one requires to draft Memorandum of association and Articles of Associate. Both MOA and AOA are registered with the MCA with the agreement statement.
Step 5: Get Incorporation Certificate of LLP
The form used for incorporation is FiLLiP(Form for incorporation of Limited Liability Partnership) which must be registered with the Registrar who has jurisdiction over the state in which the registered office of the LLP is located. The form will be an integrated form. Incorporation documents can be presented to the MCA along with an application for incorporation. MCA will approve the application for incorporation within 5 to 7 days. Incorporation certification is proof that the company has been formed. It also involves your CIN number.
Step 6: Appeal for PAN, TAN and Bank account
Then you require to apply for PAN and TAN. PAN and TAN and receive in 7 working days. You can submit the Incorporation certificate, MOA, AOA and PAN with the bank for opening your bank account.
Step 7: Register for LLP Agreement
LLP agreement oversees the mutual rights and duties between the LLP and its partners.LLP agreement must be registered in Form 3 which is to be filled in 30 days of the date of incorporation.
What are the Compliance Requirements after an LLP Company Registration in India?
Post-Incorporation Compliances
Once Limited Liability partnership registration is done the newly incorporated LLP is expected to finish following compliances. These compliances are one time in nature and are not repeated.
1. Partnership Agreement Filing
2. Apply for PAN & TAN
3. Open Bank Account
Annual Compliances Requirements after the LLP Registration
After the finish of the formation process, LLP is expected to comply with the annual compliance requirements. These compliances are compulsory to meet irrespective of the fact that they have started a company or not. If the number of transactions after the LLP registration is 0, then LLP will record NIL return.
Following returns are expected to be registered:
1. Statement of Account & Solvency
2. LLP Annual Return
3. Income Tax Return