LLP Registration

Rather, register for an LLP so that you could enjoy the benefits of partnership and company both. Easily registering an LLP gives you the versatility of a partnership, backed by the security of limited liability. Contact us now, to initiate LLP registration in India.

LLP Company Registration in India

So what is LLP Registration? Participating in LLP Registration is a way of registering a Limited Liability Partnership, which is a known legal entity under the LLP Act, 2008. You have to have at least two partners to set it up in India.

It’s exciting to run a business, but it’s equally important to protect your personal assets. With a traditional partnership, your own wealth is on the line but with a private limited company things are not as flexible as you don’t have the freedom of partnerships. With the LLP structure, you have the best of both worlds – the security of limited liability along with the simplicity of a partnership.

Wikipedia An LLP is treated as a partnership but with limited liability protection to the partners, so they are not personally liable for the partnership’s debts. So since its inception in 2008, it has gained the status of second most popular business structure after companies.

Another big advantage is that when one partner screws up, the other partners are not personally liable — something you don’t enjoy when you are in a traditional partnership firm.

Key Features of an LLP

1. It is an entity distinct from members in law.
2. Partners enjoy limited liability protection.
3. Greater flexibility than a partnership firm.
4. The functions and the authority of the partners is determined by a previously agreed LLP Agreement.
5. There have to be at least two designated partners.
6. Incorporated under the Limited Liability Partnership Act, 2013.

Advantages of Introduction of LLP in India

1. Simple to Begin – It is easy to setup as there are less papers and no headache.
2. No Minimum Capital Requirement – Your LLP can easily start with little or no investment.
3. Affordable Registration – The registration of an LLP is extremely cheap and cost-effective, which appeals to the startups and entrepreneurs.
4. Number of partners: There is no limit on the number of partners which is not possible in case of a company. This translates to additional investment and growth opportunities.
5. No Mandatory Audit – If you don’t hit certain financial plateaus, you do not have to undergo an audit.
6. Less Compliances = More Savings- With less statutory compliances, your business saves in terms of time and money.

Eligibility for LLP Registration in India

1. An LLP can be started with a minimum of 2 persons.
2. There is no minimum capital required; however, some investment is necessary for the stamp paper.
3. At least one of the partners should be a citizen of India.
4. The LLP should have a distinctive name which is not identical to an existing business.

Documents Required for LLP Registration 

From Partners:

1. Copy of PAN Card
2. Identity Proof Voter ID, Passport, Driving Licence
3. Proof of Address (Bank Statement, Utilities Bill)
4. Passport-size photo
5. DPIN (Designated Partner Identification Number)
6. DSC(Digital Signature Certificate)

For Registered Office:

1. PROOF OF OWNERSHIP (Utility bill)
2. NOC of the Owner of the property

P.S.: Your registered office can be your home address as well.

Step-by-Step Process of LLP Registration

1. Take DSC (Digital Signature Certificate) of all partners.
2. Apply for Director Identification Number (DIN) for the applicant.
3. Register Your LLP Name.
4. Upload the LLP incorporation form with the attachments on the MCA portal.
5. Sentence the LLP Agreement to writing and file.
6. Receive your Certificate of Incorporation.

Registered Office of an LLP

1. A registered office is required for all LLPs for the purpose of communication and notices and legal notices.
2. Office address may be altered subsequently by filing with the Registrar.
3. Breaking the Act can invite a penalty between ₹2,000 and ₹25,000.

Financial Disclosure & Compliance

Books of Account & Audit

1. The registered office must have a book of account under proper care of the Limited Liability Partnership.
2. Statement of account and solvency should be drawn up every year within 6 months from the end of the financial year.
3. The registrar has to be filed with annual returns.
4. Audit is not necessary if turnover or capital contribution is less than the limit provided.

Annual Returns

1. Annual returns have to be filed by each LLP within 60 days of closure of the financial year.
2. Non-closure can result in a fine ranging from ₹25,000 to ₹5,00,000.

Penalties & Legal Powers

1. False Statements: Can attract imprisonment (Maximum 2 years) and fine up to ₹5 lakh.
2. Registrar’s Authority: The Registrar has the authority to call for partners to explain or to produce documents.
3. Compliance and enforcement: On failure to comply, Tribunal can direct rectification.

How we Help in Registering LLP in India

As GarudaMudra, we offer complete LLP registration in India, and it involves the following:

1. Something about obtaining DSC, DIN and Name Approval.
2. Submission and vetting of application forms
3. Preparation of the LLP Agreement
4. Filing the Certificate of Incorporation

You can register your LLP with us at reasonable prices and with no hassles.