Overview of LLP Registration in India

LLP or Limited Liability Partnership is a totally new type of Partnership business structure in India, which was introduced in 2008 under the Limited Liability Partnership Act of 2008. The primary reason behind introducing LLP in India is to reduce all the traditional Partnership flaws & give better alternative startups. such flaws are unlimited liability, no separate management structure & limited presence of the firm. These flaws bring many challenges in operating a firm & for a better alternative. If you are looking to establish a Partnership business in India, then a Limited Liability Partnership can be your best choice!

Whizseed strives to provide you with the best LLP Registration services as our experts or consultants are committed to providing you full support to complete the LLP Registration online without any hassle and at an affordable cost. Our experts have up-to-date knowledge regarding the same, which helps us in making the whole process smooth, and it saves your money & time regarding the LLP Registration process and post-incorporation compliance.

What are the Primary Features of LLP as per LLP Act, 2008?

The following are some major features of LLP under LLP Act 2008:

• In India, Limited Liability Partnership are governed under LLP Act, 2008 and the Indian Partnership Act Act, 1932 is not applicable to Limited Liability Partnerships;
• It’s a body corporate & has legal entity separate from that of its partners;
• It has perpetual succession, which means the existence of an LL is not affected by change in membership, death, bankruptcy, etc.;
• Unlike Company’s Shareholders, the LLP’s Partners can directly manage all the business affairs;
• The liability of an LLP is to the extent of its assets, it means the Partners are liable to the extent of the amount they have agreed to contribute to the LLP;
• A Partner can’t be held responsible for the misconduct/negligence of other Partners;
• For LLP Registration in India, a minimum of 2 Partners are required and there is no limit to maximum partners;
• An Unlisted Public Company or a Private Company & Firm can be converted into LLP;
• The winding up of an LLP in India is either voluntary or by the High Court.

Benefits of Online LLP Registration in India

The following are the benefits of Online LLP Registration in India:

• Incorporation Cost is very low as compared to other company incorporation;
• It offers easy ownership transfer, which sets it apart from other forms of business structures in India;
• Each Partner is only responsible for their own contributions;
• It has a separate legal entity, means it they can initiate lawsuits on partners' behalf even though they are separate from them;
• There is no minimum capital contribution amount;
• Individuals opting for LLP Registration in India avail the benefits of handling disputes effectively.

What is the difference between LLP and Partnership Firm in India?

• LLP is governed by the LLP Act of 2008, whereas partnership firms in India are governed under the Indian Partnership Act of 1932;
• LLP is a type of Partnership and registered as per the LLP Act, 2008, whereas a partnership firm is a type of business & where partners have agreed to carry on a business and share the profit & loss of the business as per the terms of the partnership agreement;
• Partnership Firms in India don't have separate legal entity, whereas; LLP has the same;
• Registration is optional for partnership form of business, whereas; LLP must be incorporated as per LLP Act, 2008;
• Partnership doesn’t have perpetual succession, whereas; LLP has the same;
• Liabilities of partners are unlimited in a partnership firm, whereas; in the case of LLP, liabilities of partners are limited;
• Audit of accounts is compulsory or vital for LLP only if turnover & capital contribution exceed Rs.40 lakhs and 25 lakhs, respectively, whereas for Partnership firm, audit is not compulsory;
• Annual return filing is necessary in case of LLP, but Partnership does not require submitting annual return;
• The existence and operation of LLP are not affected by any change in Partnership, whereas annual return filing is not necessary in the case of a Partnership.

Checklist for LLP Incorporation in India

Following are some vital checklists for LLP Registration in India:

• Get DSC (Digital Signature Certificate) for all the Partners;
• Reserve an LLP's name through LLP-RUN form;
• Fill out the FiLLiP & apply;
• Get a Certificate of Incorporation;
• Obtain PAN & TAN;
• Draft LLP Agreement;
• Get a Current bank account for an LLP;
• Be compliant with the monthly/annual regulations.

Documents required for LLP Registration in India

Following is the list of all the crucial documents required for LLP Registration in India:

1. Address & ID Proof:

• PAN Card of Partners;
• Aadhar Card/Passport/Voter ID or Driver's License of Partners;
• Utility bills/bank statements as address proof.

2. Registered Office Proof:

• Any utility bills like electricity bills ga,s bills wa,ter bills, or corporation tax receipts not later than 30 days;
• NOC (No Objection Certificate) or Rental Agreement;

3. Declaration & Consent of all the proposed Partners:

• Form DIR-9 serves as the official consent to assume the Partner's role within the prospective company.

What is the procedure to apply online for LLP Registration in India?

Following is the step-by-step procedure for online LLP Registration in India:

Step 1: Get a DSC:

• It’s a digital method of verifying/attesting a documents via any Certifying Agencies with either 1 year or 2 year validity;
• You can directly approach Cas for e-KYC verification or via the help of supporting documents like PAN, id proof, or address proof, etc;

Step 2: Get Name Approval:

• Reserve a name of LLP using the LLP-RUN Form;
• There is a provision for the LLP to have 2 names.

Step 3: LLP Registration:

• First, fill out the FiLLip Form and submit it to the Registrar where the registered office of a Limited Liability Partnership is located;
• As a Part of additional documentation, submit Subscriber Sheet & Director’s Consent (DIR-9) alongside FiLLiP Form;
• Subscriber Sheet serves as legal evidence of the agreement of initial members/shareholders to participate in the Partnership.

Step 4: Submit LLP Agreement:

• Fill the LLP Agreement through Form-3 on the MCA portal within thirty days of the LLP being incorporated;
• The LLP Agreement governs the mutual rights & responsibilities of the Partners.

Compliance for LLP in India

Once your LLP is incorporated in India, you need to complete all the following compliance within the due dates:

• Within 30 days of LLP Incorporation, you need to file an LLP Agreement and the penalty of Rs. 100/day will be levied if a Limited Liability Partnership fails to comply with this condition;
• File 2 Annual Statements for Annual Return & Statement of Accounts & Solvency using Forms 11 & 8 respectively;
• Sign, verify & file the ITR annually;
• File the DIR-3 form for the DIN allotment in case of any existing company;
• Get GST Registration since it is mandatory as per the GST Act;
• Audit all your accounts through Cas if the annual turnover of the Company exceeds Rs. 40 lakhs/the contribution exceeds Rs. 25 lakhs of the threshold limit;
• As per their shareholding capacity, you & your Partner must deposit their contribution into the bank account within the prescribed time frame.

What are the reasons behind the delay in LLP Registration Process?

Following are some primary reasons that can result in the delay of the LLP Registration process:

• Errors in documentation;
• MCA Service Glitches;
• Response Time Delay;
• Delays in processing payments;
• Jurisdiction variability;

Our Role in LLP Registration

• We will help you with documentation & evaluation;
• Our experts will help you in opening a Current Bank Account for an LLP;
• We will also help you in choosing the right name for your business/LLP;
• Our experts will ensure a smooth procedure for LLP Registration;
• We will directly coordinate with LLP Officials to prevent errors and for proper follow-ups;
• We will provide the finest solution to all your queries regarding the LLP registration process.