A Limited Liability Partnership (LLP) is a partnership in which some or all partners have limited liability.
It is governed by the MCA (Ministry of Corporate Affairs) and regulated by Limited Liability Partnership Act,2008.
Limited Liability Partnership - Formation
@ INR 5999/-
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Name Reservation, 2 DSC & 2 DPIN
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Drafting of LLP Deed
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Stamp duty upto Rs. 2000 and its Notarisation in any state in India for LLP Deed
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Govt Fees for Capital Contribution upto Rs. 1 Lakh
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PAN, TAN, Certificate of incorporation
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Expert Assistance
Documents Required
1. PAN, Aadhaar card of Partners
2. Photograph & Specimen Signature of Partners
3. ID Proof of Partners - Voter ID/Passport/Driving License
4. Address Proof of Partners - Bank Statement / Utility bill (not older than 1 month)
5. Registered Office - Property deed (Owned) / Rent Agreement, Utility Bill, NOC from owner
Only 3 steps to follow
Fill the contact form
to get started with registration
Our Expert will connect with you for documents & file the application
Once approved, LLP is formed alongwith PAN & TAN
LLP Registration
Limited Liability Partnership Registration, governed by the Limited Liability Partnership Act, 2008, combines the benefits of a partnership with that of a limited liability company.
Minimum Requirement for Private Ltd. Company
LLP is governed by Ministry of Corporate Affairs and The Limited Liability Partnership Act, 2008; the following conditions are to be met for forming the one:
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Minimum 2 Partners:
At least two partners are required to form an LLP. There is no limit to the maximum number of partners. At least one Designated Partner as an Indian resident.
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Minimum Capital Contribution:
There is no minimum capital requirement for an LLP (or a company, for that matter). The LLP should have an authorized capital of at least Rs. 1 lakh.
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Unique Name:
The name of LLP must be unique and should not match with any existing LLP or trademarks.
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Registered Office:
The registered office can be any commercial or residential unit.
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Documents Required
For Partners (Scan Copy)
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1. PAN Card (Resident of India) or Passport
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2. Voter's ID / Passport / Driving License
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3. Latest Bank statement / Latest Utility Bill
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4, Passport sized Photograph
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5. Specimen Signature
For Registered Office (Scan copy)
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1. Latest Bank statement / Utility Bill
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2. Notarized rental agreement in English
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3. No-objection certificate from owner
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4, Sale deed / Property deed (Owned property)
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( It can be a commercial or residential unit)
Note for Partner's documents:
Any one of the partners must self-attest the first three documents. In the case of foreign nationals and NRIs, all the documents must be notarized (if currently in India or a non-Commonwealth country) or apostilled (if in a Commonwealth country).
FAQs
1. What are the advantages of registering as an LLP over general partnership firms?
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Liability- In a general partnership firm, partners are personally liable for debts of the business which means that even their personal property may be used to settle the firm’s debts. Whereas, the liability of partners is limited in case of an LLP.
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Immunity against wrong doings of other partners- Under LLP structure, partners are not responsible for negligence or misconduct of other partners whereas in general partnership firms, partners can be held responsible.
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2. What kind of start-ups commonly register LLPs?
Typically, only start-ups that will not be looking for venture capital funding register LLPs. This is because venture capitalists only invest in private and public limited companies.
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3. Who all can become a partner in LLP?
Individuals, company or foreign national can become a partner in a Limited Liability company.
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4. Is it cheaper to run an LLP than a private limited company?
Yes, it is much cheaper to run an LLP than a private limited company, particularly in your early start-up days. This is because many compliances, such as an audit, apply to LLPs only after their turnover is sizeable. Most LLPs spend about half as much as a private limited company in their first year on registrations and compliance work.
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5. What is the audit requirement for LLP?
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Accounts of an LLP are required to be audited when the turnover is Rs. 40 lakh or more or when the total capital contribution is Rs. 25 lakh or more.
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The auditor of an LLP is appointed annually by the designated partners.
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The first auditor is appointed before the end of the financial year. Subsequent appointment or reappointment of the auditors is made one month before the closing of the financial year by the designated partners.
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6. Does the Income Tax Act treat partnership firms and LLPs differently?
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Both general partnerships and LLPs are taxed at flat rate of 30%.
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All the other income tax act provisions apply similarly except that general partnership firms are covered under presumptive taxation scheme i.e if turnover is below Rs. 2 crore in business or Rs. 50 lakh in case of profession, there is no need to maintain books of accounts or get accounts audited whereas, LLPs are explicitly not covered.
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7. I am an NRI. Can I start an LLP business in India?
Yes, non-resident Indians and foreign nationals who are willing to enter into an LLP partnership can do so, provided they submit the necessary documents after getting it notarized by the concerned authorities. Although, at least one of the designated partners in an LLP should be an Indian national.
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8. What is an LLP agreement?
An LLP agreement is one that is made between the partners and the LLP regarding the relationship between the individual partners in the LLP. An LLP agreement usually consists of management policies, inclusion of new partners, policy making strategies, and so on.
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9. What is the eligibility of designated partners/partners in an LLP?
Any individual, or even a company or an LLP, can become a partner. However, only an individual can become a ‘designated partner’ in an LLP.
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10. What is the minimum capital requirement for LLPs?
There is no minimum capital contribution requirement. It can be registered even with Rs. 100 as total capital contribution.