Limited Liability Partnership Registration
Limited liability partnerships concept is quite popular in last few years. The basic intention behind introducing the LLP’s are to provide a form of business entity and meanwhile also provide facility of limited liability to designated partners. The guidelines, rules and regulations, Legal procedure are regulated by Limited Liability partnership act,2008.
Features of the Limited Liability Partnership:
- They have the feature of separate legal entity from its proposed Designated Partners.
- LLP Have the feature of limited liability of its members.
- Perpetual Succession is a inherent feature of LLP, unlike partnership firm which is dissolves when a partner leaves the firm or die.LLP remain in existence even if one or more partners are died or leaves the firm.
- Unlike partnership firms, LLP can accept loans in its name because of its feature of separate legal entity.
- The income earned by LLP is taxed @30%.It is further not taxed in the hands of designated partners.
Minimum eligibility criteria for incorporation of Limited Liability Partnership Firm:
- Minimum 2 Designated partners are required.
- Require Digital Signature of one of the DP.
- At least One Partner should be Indian National.
- Director Identification Number of 2 Directors is required.
Documents required for formation of Limited Liability Partnership:
- PAN Card
- Address Proof of the Partners( Aadhar Card/ Driving License/Voter Id Card/Bank Statement with latest transaction entries
- Registered Office Proof of the LLP if Owned( Electricity Bill/ Mobile Bill/Gas Bill/Water Bill) if Rented( Rent Deed with Electricity Bill In the Name of owner)
Procedure to formulate Limited Liability Partnership Firm:
- Prepare Digital Signature Certificate: In the process of incorporating LLP first step is to prepare the DSC of the Proposed Designated Partners. For DSC formation Compliance Solution will help you.
- Application for Name Approval: Next step In the registration process of LLP is to file Name Application in the form Reserve Unique Name For LLP with MCA. While applying for the name it should be consider that name should be unique and not resemble with names of existing LLP & Companies. provide assistance in getting your proposed company name approval.
- Drafting of LLP Agreement: Once name is approved by the ministry than we have to draft an agreement for LLP which consists :
- Name of the LLP.
- Names and Address of Designated Partners.
- Form of their contribution.
- Decided profit sharing ratio.
- Rights and Duties of the partners.
- Remuneration of partners.
- Filling of forms with regards to LLP incorporation: Once the LLP agreement finals. We should file E-form (Fillip) for incorporation of LLP.
- LLP incorporation certificate: Once the registrar approves the
Forms filled with ministry than it issued a certificate of incorporation in regards to LLP.
- Filling of LLP agreement: Within 30 Days of Incorporation of LLP, LLP Agreement which is drafted earlier should be filled to registrar in a separate E- form 3 available on MCA site.
Perquisite while deciding the name for LLP:
- The name should not be registered under any trademark class.
- Name should not be similar to any of the existing name as approved under section 4(2) of Companies Act, 2013.
- The name should be able to describe what objects it carries when incorporated.
- Comply with the criteria provide under section 4(2) of Companies Act, 2013.
FAQs On LLP
Q1. Can an existing company be converted to LLP?
Yes, any private company or unlisted public company can be converted to Limited Liability Partnership Registration. For that, you need to file Form 18 with Form 2 to continue the process.
Q2. Can a listed company be converted to LLP?
No, only a private company or the unlisted public company can be converted into LLP (Limited Liability Partnership).
Q3.How much time does it take to register an LLP?
It takes 15–20 days to register an LLP.
Q4.Can an LLP own property?
Yes, an LLP can own ownership and leasehold property in its own right, but a conventional partnership cannot own the land because it’s not a separate legal entity of its own.
Q5. What kind of persons looking for registering a LLP?
Persons who are not looking for venture capital funding, as LLP are restrained from raising funds through venture capitalists.
Q6. Is compliance in LLP are lesser than a Private Limited Company?
Yes, compliance are far lesser than LLP as Audit is dependable on turnover. Other compliance are also lesser. Registration cost is also lesser than Private Limited Company.