Limited Liability Partnership (LLP)

Limited Liability Partnership (LLP) Registration is especially suitable for small and medium-sized businesses, offering a blend of features from Private Limited Companies and traditional Partnerships.

An LLP is established under the LLP Act, 2008. Unlike a traditional partnership, in an LLP, partners aren’t held liable for each other's misconduct. This structure also provides partners with limited liability protection. Notably, LLP partners can directly manage the business, making it an appealing incorporation choice.

Advantages of LLP Registration:

• Separate Legal Entity: An LLP is an independent entity capable of contracting and legal action. Each partner isn't held liable for the actions of others.
• Limited Liability: Partners' personal assets are safeguarded in case of liquidation, except in cases of proven fraud. Partners are liable only for their invested amount.
• Perpetual Existence: An LLP continues to exist despite changes in ownership or partner departures.
• Unified Ownership and Management: Partners manage and own the LLP, unlike in Private Limited Companies where shareholders and directors may differ.
• No Mandatory Audit: LLPs with a capital contribution below 25 lakh rupees and turnover less than 40 lakh rupees are exempt from mandatory audits, making it favorable for startups and small businesses.
• Flexible Agreement: Partners have liberty in drafting agreements related to their roles and rights.
• Property Ownership: An LLP, as a juristic person, can own and transact property under its name.
• Reduced Compliance: LLPs have minimal annual compliance requirements, reducing operational complexities.
• Ease of Closure: Starting and winding up an LLP is simpler compared to a private limited company.

Minimum Requirements for LLP

• Minimum of 2 partners.
• At least 1 designated partner must be an Indian Resident.
• Proof of LLP office address.
• DPIN (Designated Partner Identification Number) for all partners.
• DSC (Digital Signature Certificate) for all designated partners.
• Capital contribution from each partner.
• Nomination of a natural person if a corporate entity is an LLP partner.

Documents Required for Registration:

For Partner/Nominee:

• Self-attested PAN card copy.
• Identity Proof (Passport, Aadhar card, Voter ID, Driving license).
• Passport-size photographs.

Address Proof:

• Self-attested copy of utility bills (Telephone/Mobile, Electricity - current month).
• Bank Account Statement (Less than 2 months old).

Others:

• Signed LLP Agreement.
• Company Address Proof for registered office (utility bills, rent agreement with NOC for rented premises, registered title document for self-owned premises).
• At ETaxwala, we streamline the Limited Liability Partnership (LLP) Registration process right from your home, providing tailored services to meet your specific needs.
• Benefit from a complimentary consultation for LLP Registration with our esteemed experts, offering hassle-free registration.

Registration Process:

ETaxwala simplifies registration procedures for businesses in India:

• Step 1: Obtain DSC & DPIN ETaxwala will initiate the application for your Digital Signature Certificate (DSC) and Designated Partner Identification Number (DPIN) (approximately 2-3 working days).
• Step 2: Name Approval We'll assist in applying for a company name approval promptly (approximately 3 – 4 working days).
• Step 3: Legal Document Submission ETaxwala will meticulously prepare your LLP Agreement and other essential legal documents (approximately 5 – 7 days).
• Step 4: Certificate of Incorporation We'll handle the filing process to secure your Certificate of Incorporation (CoI) (approximately 10 – 12 days).
• Step 5: Congratulations! Upon LLP incorporation, access your accomplishment seamlessly. Retrieve your Incorporation certificate and kit effortlessly from your dashboard.

FAQs:

Q. What is a DPIN?


Ans: A DPIN, or Designated Partner Identification Number, is a unique identifier for an LLP partner. It is crucial to mention the DPIN in relevant documentation when appointing a person as an LLP partner.

Q. What are the qualifications to become an LLP partner?


Ans: There are no specific qualifications mandated for individuals to become an LLP partner. Anyone can become a partner in an LLP

Q. Does an LLP need annual renewal?


Ans: No, an LLP continues its existence until officially closed by its owners. However, it must file basic annual returns with the Registrar of Companies (RoC).

Q. What is DSC?


Ans: A Digital Signature Certificate (DSC) is an encrypted electronic signature used for signing e-forms during the filing of documents for company registration.

Q. What does an LLP Agreement entail?


Ans: An LLP Agreement includes the primary rules governing critical aspects of an LLP, such as business operations, meetings, and capital allocation.

Q. Is a commercial space mandatory for an LLP?


Ans: No, it's not obligatory for an LLP to have a commercial space. A residential address is also acceptable for LLP registration.

Q. Can a Private Limited Company or a Partnership Firm be converted to an LLP?


Ans: Yes, both a Private Limited Company and a Partnership Firm can be converted to an LLP through the appropriate process.