By - Jagdish Lade
When it comes to business every entrepreneur in India thinks of starting his or her own company. But the question arises how do we start our own company. The answer is simple (LLP) Limited Liability Partnership Registration Program. LLP has become the most popular legal structure form of organization among entrepreneurs in India as it incorporates the benefits of both partnership firm and company into a single form of organization.
What is Limited Liability Partnership?
Limited Liability Partnership is the popular legal form of organization and is governed by Limited Liability Partnership Act 2008. Limited Liability partnership provides many great features and advantage of limited liability to its owners and at the same time requires a minimal cost for forming. Limited Liability Partnership LLP has separate legal entity just like companies, less compliance, and regulations also no requirement of minimum capital contribution.
The basic behind the introduction of LLP is it provides a form of business organization which is simple and easy to maintain and provides limited liability to the owners as well.
Limited Liability Partnership (LLP) has combined advantages of both the Company and Partnership into a single form of organization and also one partner is not responsible for another partner’s misconduct or negligence.
If you want to start your own successful business as LLP, then you must get it registered under Limited liability Partnership Act, 2008.
Limited Liability Registration LLP Registration can be done through ispeedbiz in Pune, Mumbai, Aurangabad and all other Indian cities.
Advantages of Limited Liability Partnership (LLP) :
Separate Legal Entity
An LLP is a legal entity and a juristic person established under the Act. To form an LLP Company minimum 2 Entrepreneurs are required. These 2 persons or partners are distinct from the entity and both can sue each other and get sued in the process.
The main feature of LLP is its Limited Liability, which means it is legally responsible only for a limited amount of debts of an LLP. The personal assets of the directors are safe if anything goes wrong with a company or the company goes bankrupt. Unlike proprietorships and partnerships, in an LLP the liability of the members in respect of the LLP’s debts is limited. If you want to start your own company then this is the right choice if you plan to step to head forward with a suffix LLP. Only the amount invested in starting the business would be lost and all personal property would be safe that's the actual Limited Liability.
An LLP is a juristic person, can acquire, own and enjoy the property in its own name. No Person or Partner can make any claim upon the property of the LLP so long as the LLP is a going concern.
An LLP has ‘perpetual succession’, which is a continued existence until it is brought on the terms of the dissolution by mutual agreement within the partners. Partners may come and go, but an LLP continues to go on.
The ownership of an LLP can be easily transferred to another person. All you have to do is induct them as a Designated Partner of the LLP. By changing the Managing Partners, the ownership of the LLP can be changed as LLP is a separate legal entity and juristic person.
Audit Not Required
LLPs are ideal for startups and small businesses. Entrepreneurs earning a turnover of less than 40 Lakhs requires no audit. And also the capital contribution of less than 25 Lakh requires no audit for their accounts. This is a plus point for startup in India to have a there owned business.
An LLP requires audited only when the annual returns to be filed has a turnover of greater than Rs.40 lakh or capital contribution of over Rs.25 lakh.
There are some important advantages over the private limited company. For example, Dividend Distribution Tax and tax surcharge don't apply. Loans to partners are also not taxable as income.
To set up your own business, the cost required is less as compared to a private limited company then in LLP. It requires a minimal cost of forming a company then private limited.
Disadvantages of Limited Liability Partnership (LLP) :
Difficult to Get Angel Funds as Compare to Private Limited.
- Fewer Features as Compare to Pvt Ltd Company.
Minimum Requirement for Registration of LLP Company :
- Minimum 2 Partners.
- No Capital Requirement
- At least one Designated Partner as Indian Resident
- DPIN for all Partners
What is Included in our Package for LLP Registration:
- Digital Signature For 2 Partners
- 2 DPIN for 2 Partners.
- Name Reservation.
- Incorporation Certificate
Limited Liability Partnership Registration Procedure:
Step 1: Digital Signature Certificate (DSC)
To start a registration process, you must apply for the digital signature of the designated partners for the proposed LLP. This is because all the documents for LLP are filed online and are required to be digitally signed.
So, all the designated partner of their startup business must obtain their digital signature certificates from government recognized certifying agencies.
Step 2: Director Identification Number (DIN)
To proposed an LLP all the designated partners or those who are intending to be designated partner must apply for the DPIN (Director Identification Number)
Earlier it so happened that partners who had to apply for DPIN (Designated Partner Identification). Now has to apply for DIN instead of DPIN, every partner who will be appointed as a designated partner has to apply for DIN.
Step 3: Reservation of Name
Form 1 is filed for the reservation of name of proposed LLP. List of company names closely resembling names of existing companies/LLPs based on the search criteria filled up is provided to you. This will help you in choosing names which is not similar to already existing names. You need to provide six names in the order of preference in Form 1. Company name will be approved as per government norms.
Step 4: Incorporation of LLP
Form 2 is the application form for the incorporation of the LLP. You must keep in mind following points while filing Form 2.
- All the details to be filled correctly and rightly of yours and partners.
- Based on the contribution of partners in the proposed LLP, you will have to pay the prescribed registration fee.
- The form must be digitally signed by a person named in the incorporation document as a designated partner having DIN.
- On the submission of the form, if the registrar gets satisfied, then they will register the proposed LLP.
- It takes 15-20 days for the registration of LLP subject to government processing time and submission of necessary documents.
Step 5: File LLP Agreement
LLP agreement provides the rights and duties between partners and also between the LLP and its partners.
LLP agreement must be filed in form 3 online on MCA Portal.
Form 3 for LLP agreement has to be filed within 30 days of the date of incorporation.
Get all the legal documents necessary for the company incorporation.
Documents Required to Register LLP Company :
Here is a list of documents required for registration:
- PAN Card of the Partners
- Address Proof of the partners
- Utility bill of the proposed registered office of the LLP.
- If the office is taken on a lease, the no objection certificate (NOC) from the landlord.
- Rental/lease agreement with the office.