Now registered Your LLP at Just Rs.5999* ( Inclusive All )
Limited Liability Partnership entities, the world wide recognized form of business organization has now been introduced in India by way of Limited Liability Partnership Act, 2008 mainly useful for Services Industry and professional organization. A Limited Liability Partnership, also popularly known as LLP which combines the benefits of both the Company and Partnership into a single form of organization.
Within limits no audit requirementsy
Legal Entity Status
Low Cost Of Formation
Less Statutory Compliance
No requirement of any Minimum Capital
Body corporate can be a partner of an LLP
Less government intervention
Easy to dissolve & Wind Up
First and important benefit of trading/doing business via LLP is the limited liability conferred upon the partners. As a sole proprietor or partnership business, personal assets of the proprietor or partners can be at risk in the event of a failure of the business, but this is not the case for an LLP.
Unlike proprietorship and partnership, if an LLP becomes insolvent and if wound up, only the assets of the LLP are used to clear its debts. The partners of LLP have no personal liabilities and are not made bankrupt and also they are free to operate as credible businessmen. The closure of a limited liability partnership may be either voluntary winding up or by the Tribunal.
Audit is not required unless capital exceeding Rs. 25 lakh or turnover exceeding Rs. 40 lakh.
An LLP is a legal entity, a juristic person established under the Act. It has its existence separate from its partners.
LLPs are taxed similar to general partnership firms. LLPs pay tax at 30%.
The taxation will be imposed only on 10% or 40% of the total LLP’s income, since the firm will be allowed to pay tax on the balance 90% or 60% to the partners as remuneration. This means, the partners will have to pay tax only on the amount paid to them. So, there will not be double taxation of income.
Unlike Private or Public Companies, there is no requirement for payment of Dividend distribution/Corporation Tax on distribution of income/profits among partners and also there is no requirement as to Minimum Alternate Tax.
Scan Self attested PAN copy
Scan Copy of Self attested Driving License/ Aadhar Card/ Voter's ID/Passport
Scan copy of Photographs
In case of foreign nationals / NRIs – passport and address proof should be attested by Notary and Apostilled (if in Common wealth Country) or attested by Indian Embassy Conciliate. However if documents are not in English language than translation in English is required by specified authority.
Number of Partners of Proposed LLP.
Desired Name/s of LLP
Profit and Loss Ratio between Partners
Propose object or Purpose of LLP
How much each partner are going to contribute towards capital of LLP. There is No limit of maximum and minimum capital requirement for LLP
Yes, the proposed LLP can have Trademark design registered in its name under the Trademark Act 1999 and rules made thereunder.
While starting any business through LLP we need to consider following basics qualification to be appropriate for LLP :-
Minimum Two Partners are required.
Partner can be another Company or LLP with nomination of natural person
DPIN ( Director Identification Number) of Designated partners
DSC ( Digital Signature Certificate )of All partners is Compulsory
There is No Minimum Capital Limit in LLP.
Foreign Person or Company can be Partner in LLP. However we need to pre check FDI limits in concern business of LLP
LLP can be formed for specific project or purpose as SPV and after completion of project LLP can be closed after all compliances.
One Designated Partners Should be Resident Indian.
As per the LLP Act, 2008 read with the applicable rules, the full form of LLP is Limited Liability Partnership.
LLP is a type of Business entity which offers the benefit of Limited Liability of Company and flexibility of partnership. The Partners Liability is limited to the extent of contribution made by the partners.
The minimum number of partners required for forming LLP is two.
A minimum two partners are required to incorporate Limited Liability Partnership and registered office of the LLP is required to be located in india.
To get LLP registered, you need to apply for obtaining DPIN i.e. Designated Partner Identification Number which can be done by filing in e-form also apply for Digital Signature Certificate and get it registered on MCA portal.
The following is the procedure for incorporation of Limited Liability Partnership:
1. Get Digital Signature Certificate
2. Obtain Designated Partner Identification Number (DPIN)
3. Select appropriate name for LLP
4. Search if name of LLP is already available if not, then apply for that name for proposed LLP through RUN i.e. “Reserve your Unique Name” service
5. After the approval of such name from ROC , start applying for incorporation of LLP in e-form 2
6. After the approval of such name from ROC , start applying for incorporation of LLP in e-form 2
7. At last file Limited Liability Partnership Agreement in e-form-3.
Yes, through LLP form 17, LLP form 2 and LLP form 3 an existing partnership can get converted into LLP .
Any individual or body corporate may be a partner in an LLP, however an individual shall not be capable of becoming a partner in LLP-
1. If he has been found to be unsound mind by court of competent jurisdiction
2. If he has been undischarged insolvent or
3. If he has applied to be adjudicated as an insolvent and his application is pending.
The following documents are required for LLP incorporation :
1. PAN Card of all the partners
2. Proof of Identity of all the partners
3. Proof of Address of all the partners
4. Utility Bill of the proposed registered office of LLP
5. No-objection certificate from the landlord
6. Rental Agreement Copy between LLP and partners
1. It is easier to start LLP which has few formalities
2. It has lesser cost of registration as compared to Company
3. LLP has its own existence other than its partners
4. There is a minimum amount capital required for LLP formation
5. There is no requirement of compulsory Audit
Stamp paper should be bought in the name of LLP , However the agreement should be signed by all the partners to express their consent for all terms and conditions mentioned in the agreement.
An LLP is liable to the extent of its assets but liability of partners is limited to their contribution in LLP. Hence the Creditors of the Limited Liability Partnership are not creditors of individual partners.
Designated Partner are like Directors and Partners are like shareholders. The Liability of Partners is limited to partnership agreement. The Designated Partners are responsible towards the day to day affairs of LLP .
Before closing a current account of LLP first need to make sure that there is no assets and balance lying in current account, once it is confirmed that there is no balance available in current account, Designated partner can approach to the Bank for closure of Current account which is in the name of LLP.
By introducing the Limited Liability Partnership (Amendment) Rules 2017, the Ministry of Corporate Affairs has recently introduced e-form 24 for closure of LLP by making an application to ROC.
LLP can be closed by voluntary winding up and compulsory winding up.
1. If tribunal found that LLP decides that LLP be wound up,
2. if for a period of more than 6 months the number of partners are reduced below two.
3. If the Limited Liability Partnership is unable to pay its debts
4. If LLP has made a default in filing with registrar the statement of account and solvency or annual return for consecutively five financial years.
5. If the tribunal is of the opinion that it is just and equitable that Limited Liability Partnership be wound up.
1. The LLP can make application for closing and removal of its name through e-form 24
2. On receipt of application registrar send all partners and LLP notice of his intention to remove the name of LLP from the register and request them sent their representations along with the copies of relevant documents within 30 days from the date of notice.
3. If there are no adverse representations from LLP partners or general public then registrar if satisfied, strike off the LLP name from the register and publish a notice in the news paper.
An application to be made in e-form 24 with ROC with following documents :
1. A Statement of Accounts disclosing nil assets and liabilities and certified by a Chartered accountant in practice made up to date not earlier than 30 days of the date of application.
2. Copy of acknowledgement of latest income tax return
3. An affidavit signed by designated partners either jointly or severally
4. Copy of authority to make application
5. File all overdue returns if you have not filed return for last year before which you have already ceased business operations of LLP.
6. Copy of initial Limited Liability Partnership Agreement if entered into and not filed along with changes thereof in cases where the LLP has not commenced the business or commercial operations since its incorporation.
The Date of cessation of commercial operations is the date from which the Limited Liability Partnership ceased to carry on its revenue generating business.