LLP| Limited Liability Partnership Firm Registration
LLP Registration in India is one of the most dependable corporate business solutions. LLP Registration fees are also reasonable. As per the terms of this business, you easily fetch benefits of limited liability and flexibility of partnership business. In other means, you can also consider it to reap the benefits of both business wings while maintaining transparency in management and keep the scope of expansion open like a company. The compliance requirement for LLP is also low as well as you have to file fewer returns in comparison with other options. It is important for you to know that audit is not required for any LLP until turnover reaches Rs. 40 Lac. and Capital touches the figure of Rs. 25 Lac. In addition, compliance is based on the inputs given by the partners. These entire points combine together to make it the first choice for small businesses. This convenience is available since 2009 and a minimum of two people are required to start the LLP.
Requirements To Start A LLP Registration in India
Minimum Two Person
You essentially need two partners to start the LLP. However, the number of partners can be increased to the number of your choice.
No Minimum Capital
Partners essentially have to decide on the Capital of LLP on the basis of requirements of the business. Govt LLP Registration fees are also an important element to consider.
NO FDI is allowed
It is essential for any LLP to have an Indian resident as a designated partner. Any person is eligible for it if he/she stays in the country for 182 days in an FY.
Unique Name for LLP Registration in India
Every LLP is unique in its own way. For the same reason, you are supposed to come with a fresh name & idea. They should not match with anybody.
Limited Liability Partnership Registration Procedure
Step1:- Digital Signature Of Partners
DSC is no less than physical or paper certificates in any way. The process of issuance of a digital signature for the director of the company automatically starts when you apply for LLP registration in India. In order to ensure smooth processing for the issuance of digital signature, you are supposed to submit Photo, ID, Address Proof, or other required documents along with registration form.
Step2:- DIN Number Allotment For The Partners
Registrar of companies provides a permanent number as a unique identification number to the directors of a company or designated partners of LLP. According to the rules of The Company Act, 2013, nobody can hold the office of the director without DIN. An application for DIN essentially has to be filed to ROC along with Photos, Attested ID, Address Proof duly attested by CMA, CS, or CA.
Step3:- Approval of name for the LLP by the ROC
The name of your LLP business must be unique. It should not show resemblance to logo, trademark, or brand name to any existing LLP in any way. After procuring DSC and DIN, an application essentially has to be filed to ROC for name approval. Registrar possesses all the powers regarding approval of the name. In order to reduce the possibility of any kind of confusion while deciding the name, you can talk to our representatives.
Step4:- Issuance of Registration Certificate of LLP
In order to get benefitted with the timely issuance of a certificate of incorporation, you essentially have to comply with each and every step. At the time of filing spice E-Form, you also have to attach the details of DIN, Name Approval, and Documents regarding incorporation. It is also important for you to know that only one name can be suggested in the spice form. A certificate of incorporation always remains the conclusive proof for registration of the company.
Step5:- LLP Agreement drafting and Filing with the ROC
All partners of any LLP agree on themselves on mutual rights, profit sharing, capital contribution ratio, and other vital points. This agreement is known as the LLP agreement. After signing the agreement all partners are required to make a copy and keep one each. One copy also has to be submitted with the ROC within a period of a maximum of 30 days of starting the LLP. After this period, partners will be penalized with Rs. 100 per day.
Step6:- PAN, TAN Number of LLP & Bank A/c Opening
Income Tax Department of India allots Permanent Account Number (PAN). It consists an alphanumeric number of up to 10 places. In order to comply with TDS rules, every taxpayer essentially has to procure the Tax Deduction Account Number. These identification numbers prove of utmost use therefore never snub their requirement on any terms. As the last step, you need a bank account in any of the scheduled banks for transactions.
Limited liability partnership or LLP is a partnership in which the partners have limited liabilities and they are not responsible for each other’s negligence or misconduct. Limited liability partnership or LLP benefits the partners with low compliance costs. LLP is a legal entity that is liable for the full extent of the assets offered.
The partners share in limited liability partnership or LLP depends upon the amount they’ve put into the business. The advantages of LLP in India are much as it is a new form of partnership which is more convenient for the partners. The concept of LLP in India was introduced by the Limited Liability Partnership Act, 2008.
LLPs are a flexible tax entity that increases the benefits of the partners from economies of scale by working together, while not being responsible for the negligence of the other partner.
Why choose an LLP?
The professionals who choose LLPs are very concerned about their reputation. Mostly LLPs are managed by a group of professionals who have previous experience and clients between them. The professionals pool the resources between them, they lower the costs of doing business and increase the growth of the LLPs.
There may be a number of junior partners in the LLPs who work for the partners so that one day they may become a full-time partner. These junior partners have no liability in the partnership instead they are paid a fixed amount salary.
Another good thing about LLPs is the easy working of letting partners in and out. It takes the agreement of all the partners to add a partner to the LLP. A partnership agreement already exists in a Limited Liability Partnership which makes it easy to add or to retire the partner according to the need of the time.
The flexibility of an LLP is the most important point to choose it over any other partnership. In an LLP the partners receive untaxed profits and they have to pay the tax themselves.
Advantages of an LLP
· It is very convenient to start and process a Limited Liability Partnership. They are designed by the partners according to their needs. There are no to fewer formalities like annual meetings etc.
· There is no requirement of minimum capital money. The capital may be intangible or intangible form.
· There are no limits to the owner of the business. An LLP may have a minimum of 2 partners while there may be as many maxima as there is no limit to the maximum number of partners.
· The registration cost is lower.
· There is no compulsion for an LLP to get its accounts audited.
· They only have to submit two statements- Annual Return and Statement of Accounts and Solvency and they have a low compliance burden.
· It is not liable to pay tax on the income and the shares of the partners..
· No additional tax in the form of DDT is applicable.