Limited Liability Partnership (LLP) Registration in India

Description

Limited Liability Partnership (LLP) Registration in India with Patra’s Law Chambers

What is an LLP?

A Limited Liability Partnership (LLP) is a corporate business vehicle that integrates the benefits of both the company and partnership into a single form of organization. It allows partners to enjoy limited liability protection while offering the flexibility of managing internal operations based on a mutually agreed partnership deed.

LLP Registration Prerequisites and Eligibility Conditions

1. Minimum Partners: An LLP requires at least two partners.
2. Designated Partners: At least two designated partners, one of whom must be an Indian resident.
3. No Minimum Capital Requirement: There is no minimum capital requirement, allowing flexibility in contribution.
4. Unique Name: The LLP name must be unique and should not infringe on any existing trademarks.

Characteristics of LLP

1. Separate Legal Entity: LLP is a separate legal entity from its partners.
2. Perpetual Succession: The LLP continues to exist regardless of changes in partners.
3. Limited Liability: Partners’ liability is limited to their agreed contribution.
4. Flexible Management: LLP allows for internal flexibility in operations without extensive regulations.
5. No Requirement for Minimum Capital: LLPs can start with any amount of capital.

Advantages of LLP

1. Limited Liability Protection: Personal assets of partners are protected from business liabilities.
2. Separate Legal Entity: LLP can own assets and incur liabilities independently.
3. Operational Flexibility: Less regulatory compliance compared to companies.
4. Tax Benefits: LLPs can benefit from tax advantages over other forms of businesses.
5. No Audit Requirement: LLPs with turnover less than ₹40 lakhs or capital contribution less than ₹25 lakhs are not required to audit their accounts.

Disadvantages of LLP

1. Limited Recognition: LLPs are less recognized in some sectors compared to companies.
2. Restrictions on FDI: Foreign Direct Investment in LLPs is subject to specific conditions.
3. Compliance Requirements: Though fewer than companies, LLPs still have significant compliance obligations.

LLP Name Reservation

1. Unique and Non-Offensive: The proposed name must be unique and not offensive.
2. Trademark Check: Ensure the name does not infringe on existing trademarks.
3. Approval by MCA: The Ministry of Corporate Affairs (MCA) must approve the name.

Documents Required for LLP Registration

1. Identity Proof: PAN card, passport, or voter ID of partners.
2. Address Proof: Bank statement, utility bill, or driving license of partners.
3. Registered Office Proof: Rental agreement, NOC from the owner, and utility bill.
4. Photographs: Passport-sized photographs of partners.
5. Digital Signature Certificate (DSC): DSC for designated partners.
6. Partnership Deed: LLP agreement drafted on a stamp paper.

Procedure for LLP Registration

1. Obtain DSC: Digital Signature Certificates for all designated partners.
2. Apply for DIN: Director Identification Number for all designated partners.
3. Name Reservation: File RUN-LLP for name reservation with MCA.
4. Incorporation Application: File FiLLiP form with necessary documents.
5. LLP Agreement: Draft and file the LLP agreement within 30 days of incorporation.

Effortless LLP Registration Made Possible with Patra’s Law Chambers

At Patra’s Law Chambers, we streamline the entire process of LLP registration, ensuring a hassle-free experience. Our expert team assists you at every step, from obtaining necessary certifications to drafting the LLP agreement, making sure all compliance requirements are met seamlessly.