LLP Incorporation- Requirements and Procedures
LLP registration offers numerous benefits and is an ideal choice for individuals looking to combine their knowledge and expertise.
At Certifications Bay, we provide top-notch assistance for LLP registration to our clients.
LLP Registration
LLP registration is a process of registering a Limited Liability Partnership firm in India under the Limited Liability Partnership Act 2008. An LLP is a hybrid business entity that combines the features of a corporation and partnership firm, where partners have limited liabilities depending on the jurisdiction.
Unlike a limited partnership, an LLP’s partners are liable to pay the debt of the company only to the extent of their capital contribution.
Therefore, LLP registration online involves fulfilling certain obligations to establish an LLP company with limited liability for its partners.
Is it possible for a foreigner to incorporate an LLP?
As per the LLP Act 2008, foreign nationals, including foreign companies, can incorporate an LLP in India. However, at least one partner should be a resident of India.
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Advantages of LLP Incorporation
LLP provides flexibility without imposing extensive legal and procedural requirements.
The bankruptcy, death, or departure of a partner does not affect the existence of the LLP company.
LLP allows for flexible transfer of ownership without procedural delays.
LLPs with a capital below 25 lakhs and annual turnover below 40 lakhs are not required to maintain formal audits.
LLP is organized and managed based on the agreement among its partners.
LLP partners provide professional or technical expertise to the company.
As a juristic person, LLP has the authority to own and acquire property.
Features of LLP Company
- To establish an LLP, a minimum of two members are required, and there is no restriction on the maximum number of members
- As a separate legal entity, LLP has the rights and privileges similar to those of a natural person. This includes the ability to own property, sue and be sued, and enter into contracts.
- In an LLP, no partner is personally liable for the unauthorized or independent actions of other partners.
- An LLP can continue to operate even after a change in its partners.
- There is no minimum amount requirement for incorporating an LLP.
- The mutual rights and duties of partners in an LLP are governed by the agreement between partners or the agreement between partners and the LLP.
Checklist of LLP Incorporation
For LLP incorporation, a minimum of 2 partners are required, and there is no restriction on the maximum number of partners that can be included in the LLP.
Each partner in an LLP is required to agree to contribute towards the capital requirements of the LLP.
For Foreign Nationals and Non-Resident Indians (NRIs) looking to incorporate an LLP in India, at least one designated partner must be a resident of India.
There is no minimum or maximum limit on the amount of capital that can be contributed by partners for LLP incorporation.
Each partner in an LLP is required to obtain a Designated Partner Identification Number (DPIN).
All designated partners of an LLP are required to obtain a Digital Signature Certificate (DSC) to sign and file the necessary documents during the LLP registration process.
you need to provide a valid address proof for the registered office of the LLP, whether it is a rented or owned premises.
Documents Required For LLP Registration
- A copy of identity proof such as Voter’s ID card, Driving license, etc.
- To establish the address proof of the business, a photocopy of the rental agreement is required in case the business is operating from a rented place.
- To establish an LLP at a rented place, you must provide a No-Objection Certificate (NOC) from the property owner.
- If you are the owner of the property where the LLP will be established, you are required to provide a copy of the sale deed or property deed.
- A photocopy of the electricity bill, telephone bill, or latest bank statement, which should not be older than 2 months.
- Foreign nationals and NRIs are required to provide a photocopy of their PAN card and passport for LLP registration.
LLP Incorporation Process
To initiate the process of registering an LLP, it is necessary to obtain a Digital Signature Certificate (DSC) and a Designated Partner Identification Number (DPIN).
An application in Form 1 needs to be filled to propose and obtain approval for the desired name of the LLP.
After selecting a name that is appropriate and meets all the standards, the next step is to fill out the incorporation Form 2. This includes providing all the required information and attaching the necessary documents.
Finally, the LLP will receive a certificate of incorporation upon fulfilling all the necessary requirements.
Note- Within 30 days of LLP company incorporation, file an LLP agreement.
Certifications Bay strive to provide you high standard compliance services (best of LLP company registration services) as our LLP registration consultant are committed to provide you complete assistance to complete the LLP registration online without any hassle. For this, our LLP registration consultant has up-to-date knowledge regarding the same which helps us in making the LLP registration process smooth. It saves your time and money in respect of LLP registration process/ LLP company registration.
Conclusion
Certifications Bay offers professional services to help you with the LLP registration process, regardless of your location. Our team of experts is committed to providing accurate and timely assistance, ensuring a smooth and hassle-free process of LLP registration online.
We have a team of highly skilled and knowledgeable LLP experts who understand the importance of compliance with the LLP registration checklist, requirements, and process. Our goal is to ensure that there are no inaccuracies or obstacles during the process of LLP incorporation.
If you require assistance with LLP registration, our team is ready to help. Contact us today for prompt and reliable support.
Frequently Asked Questions (FAQs)
LLP has no clear distinction between ownership and management, while ownership in a private limited company is based on shareholding.
An individual cannot form an LLP alone as it requires a minimum of two members to start an LLP firm.
Yes, registering an LLP is mandatory.
LLPs are required to get their accounts audited as per Rule 24 of LLP Rules 2009.
The ownership and control of an LLP are vested in its members.
LLPs are required to file their annual return in Form 11 with the Registrar of Companies (ROC) within 60 days of the close of the financial year.