LLP stands for Limited Liability Partnership. The LLP act was passed in the year 2008 for the smooth conduction of LLPswhich came into effect since 31st March 2009. LLP is an alternative business structure which, besides giving the benefits of limited liability of any company, has the flexibility of partnership in it. LLP is independent of the changes in the company's partners in which member is protected from personal liability, except to the extent of their capital contribution in the LLP. Limited Liability Partnership makes it easy for the partners to join hands even with the least capital they have in hand with no minimum capital required for formation. The best part is that the capital can also be in any tangible form like land, machinery, or intangible properties.
The above characteristics make an LLP Registration more preferable by Professionals, Micro, and Small businesses that are family-owned or closely held. Since LLP cannot issue equity shares, LLP can be used for any business that has plans for raising equity funds during its lifecycle. The registration cost of an LLP is meager compared to any other company (Public or Private). Also, the registration process is quite simple. The average time required for the LLP registration process is 6-9 working days, subject to client document submission and government processing time.
The Limited Liability Partnership (LLP) Registration has separate legal entity from its owners which safeguard the partners of LLP from being sued in case of any legal controversy. Also, the owner's assets will not be utilized to pay off the LLP's debts. Under partnership, partners have unlimited laibility which means personal wealth of partners can be used to pay any liability of the Partnership firm which is main advantage of LLP over traditional partnership firm.
A LLP registration will be required to confirm to the procurements relevant to private limited company registration, but it needs do fewer communication regarding business transaction as compared to private limited company registration. It is mandatory to annual audit returns for private limited company registration whereas LLP registration is exempted to do annual audit returns in case turnover for LLP registration is up to 40 lakhs and capital contribution is upto Rs. 25 lakh.
Registering a LLP gives a brand image to business compared to running a business as a partnership. Normally, services sector or professional firms are set-up as LLP which gives benefit of better brand image along limited liability.
All financial institutions prefer to lend money to any LLP registration instead of partnership firms. The features of transparency and perpetual succession of the LLP registration give it benefits over partnership firms. The LLP registration has better governance, which provides more comfort to all the financial institutions.
✔ Minimum 2 Partners
✔ One of the partners must be an Indian resident
✔Digital signature Certificate for partners
✔The partners and Investor can be the same in LLP
✔Director Identification Number (DIN) for all partners
✔ DSC (Digital Signature Certificate) for all partners
Name of LLP registration is a crucial step for new company registration. Two proposed names in order of preference, objective/purpose of business activity along with statutory fees are submitted to MCA. The proposed name should be unique and shouldn’t have punctuation marks. In case MCA has any observation then the form comes for resubmission, and in case of more than one resubmission, statutory fees is to be paid again. Once the name is approved, it is valid for 20 days (including weekends or other holidays), and all other formalities must be completed within this period.
Digital Signature is an online signature used for filing documents online. Digital Signature Certificate (DSC) is required for all partners for LLP registration. It can be applied in parallel with applying for name approval as there is no DSC requirement in the name application. If the partners of the LLP registration already has DSC, this step can be skipped.
After getting DSC and name approval, the next step is to file forms- Spice + Part, Agile Pro, Spice MOA, Spice AOA, and INC 22 forms with MCA. These forms consist of information regarding registered office, authorised, paid-up capital, shareholding pattern, partners, details such as an address, education qualification, etc. Some of this information is required to be supported required proof like rent/title deed of registered office, PAN card, indentity proof, resident proof etc.
After submitting all the documents and getting verified by the Registrar of Companies (ROC), you will receive a Certificate of Incorporation within 7-12 days. This certificate of incorporation will act as a birth certificate for your LLP registration, and the LLP registration process ends here. The certificate of incorporation consist of LLP name, registered address, approved by MCA and notified on the registered companies.
After getting the Incorporation certificate, a bank account needs to be opened in the name of your LLP. One needs to submit an incorporation certificate, MOA, AOA and other necessary documents required by the bank. Before the commencement of business, proposed paid-up capital must be deposited with the bank, and INC-20A needs to be filled with MCA to get the certificate of commencement.
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Yes, the whole process of LLP registration is online. You don't need to visit anywhere physically. Contact us Now.
There is a requirement of at least 2 partners to incorporate a LLP.
Normally, it take 1-2 weeks time for LLP registration provided all documents are supplied on time.
Directors Identification Number (DIN) is issued to a person who will be appointed as a director in the company. It is mandatory to have DIN before any person can be appointed as a director.
A Digital Signature Certificate (DSC) is the digital equivalent of physical papers or certificates required to sign the form electronically. Yes, as both directors need to sign various documents to incorporate a company, thus all the directors must have DSCs.
The Authorized Capital is the maximum amount of capital that a company is authorized to issue to the shareholders. This authorized share capital will always or be equal to the paid-up share capital.
A portion of authorized capital that has been issued and paid by shareholders.