Online LLP Registration In India

Online LLP Registration In India - An Overview

The advantages of a partnership and a limited liability company are combined in a limited liability partnership (LLP). It started to take effect in India after January 2009 and established a massive hit with new businesses and professionals services. The purpose of registering an LLP was to offer a simple corporate structure that would benefit owners by limiting their responsibility.

Benefits of LLP Company Registration

Incorporating a Limited Liability Partnership (LLP) in India offers several benefits to business owners, making it a popular choice for many entrepreneurs.
Here are some of the key benefits of LLP incorporation:

• Limited Liability:
  The primary advantage of an LLP is limited liability. The personal assets of the partners are protected, and their liability is limited to the extent of their capital contribution in the LLP. This means that personal assets are not at risk in case the LLP incurs debts or legal liabilities.
• Separate Legal Entity:
  An LLP is considered a separate legal entity from its partners. It can own property, enter into contracts, and sue or be sued in its own name. This legal separation enhances the credibility and stability of the business.
• Flexible Management:
  Partners in an LLP have the flexibility to manage the business as they see fit, subject to the terms outlined in the LLP agreement. This allows for a more customized and efficient management structure.
• Tax benefits:
  LLPs are taxed as pass-through entities, which means that the profits and losses of the LLP are passed through to the partners and taxed at their individual rates. This can be a significant tax advantage for LLPs.
• No Audit Requirement (for Small LLPs):
  

LLP Registration Requirement & Eligibility

Registering a Limited Liability Partnership (LLP) in India involves meeting certain requirements and following a specific process. Here are the key requirements for LLP registration:

• There must be a minimum of two partners for an LLP.
• Designated partners are individuals who are responsible for the day-to-day management of the LLP.
• At least one of the designated partners must be an Indian resident.
• Specify the capital contribution of each partner in the LLP agreement. There is no minimum capital requirement for LLPs, and partners can contribute any amount.

Document Required for LLP Registration

Here is a list of the documents required for LLP registration:

The partners has to provide the following documents:

• PAN cards or Passport (Foreign Nationals or NRIs)
• Aadhaar card/ Voter's ID/ Passport / Driving License
• Latest bank statement/ Telephone bill/ Mobile bill/ Electricity Bill/ Gas Bill
• Passport-size Photograph
• Blank Document with specimen signature

Note^*: The first three documents must be self-attested by one partner. All papers pertaining to foreign nationals or NRIs must either be apostilled (if from a commonwealth country) or notarized (if currently in India or another country that is not a member of the Commonwealth).

For the registered office:

• Utility Bills
• Notarized rental agreement in English
• No-Objection Certificate from the property owner
• Sale deed/ Property deed in english (In Case of owned property).

How to Register an LLP in India?

Registering a Limited Liability Partnership (LLP) in India involves several steps and requires compliance with the regulations set by the Ministry of Corporate Affairs (MCA). Here's a step-by-step guide on how to register an LLP in India:

• STEP 1: Obtain Digital Signature Certificates (DSCs) & DPIN:
  All designated partners of the LLP must obtain Digital Signature Certificates (DSCs) from certified agencies. The DSCs are required for signing and filing the LLP incorporation documents electronically.
  For DPIN:- Apply for Designated Partner Identification Numbers (DPINs) for all designated partners.
• Step 2: Choose a Unique Name for the LLP:
  Select a unique name for your LLP, ensuring that it complies with the LLP naming guidelines. Check the name's availability on the MCA website and reserve it by filing Form 1 (LLP) with the Registrar of Companies (RoC).
• Step 3: Prepare the LLP Agreement:
  Draft an LLP agreement outlining the rights, duties, and responsibilities of the partners. You can use the standard LLP agreement provided by the MCA or customize it as needed.
• Step 4: Incorporation Application:
  
  1. Fill Form FiLLiP:
     Complete the LLP incorporation application (Form FiLLiP) online on the MCA portal. The form will require information about the LLP, its partners, and the registered office address. Attach the necessary documents, including the LLP agreement and consent of partners in Form 7.
  2. Pay the Applicable Fee:
     Pay the prescribed fee for LLP registration based on the capital contribution and the number of partners. The fee can be paid online.
• Step 5: Submission and Verification
  
  1. Submit the Application:
     Submit the Form FiLLiP and accompanying documents to the MCA portal.
  2. Verification and Approval:
     The Registrar of Companies (RoC) will verify the application and documents submitted. This verification process may take a few days, and the RoC may request additional information or clarification if necessary.
• Step 6: Certificate of Incorporation:
  Once the RoC approves the application, you will receive a Certificate of Incorporation. This certificate signifies the official registration of your LLP.
• Step 7: Obtain PAN and TAN:
  After incorporation, apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the LLP through the NSDL website or a TIN Facilitation Center.

Features of Limited Liability Partnership

A Limited Liability Partnership (LLP) is a hybrid business structure that combines the features of a partnership and a corporation. Here are the key features of an LLP:

• Limited Liability:
  The primary feature of an LLP is limited liability. The personal assets of the partners are protected, and their liability is limited to the extent of their capital contribution in the LLP. This means that partners are not personally responsible for the debts and liabilities of the LLP.
• Separate Legal Entity:
  An LLP is a separate legal entity from its partners. It can own property, enter into contracts, and sue or be sued in its own name. This legal separation enhances the credibility and stability of the business.
• Perpetual Succession:
  An LLP has perpetual succession, meaning it can continue to exist even if one or more partners leave or pass away. The LLP can continue its operations with the remaining partners or new partners.
• Flexible Management:
  Partners in an LLP have the flexibility to manage the business as they see fit, subject to the terms outlined in the LLP agreement. This allows for a more customized and efficient management structure.
• Profit-Sharing:
  Profits and losses of the LLP are shared among partners based on their capital contribution or as per the LLP agreement. Partners can have different profit-sharing ratios.

Checklist of LLP Registration Online

Here's a checklist to help you ensure that you have all the necessary items in place for LLP registration:

• Choose Suitable Partners:
  Ensure that you have at least two designated partners, with one of them being an Indian resident. Verify their eligibility for partnership.
• Digital Signature Certificates (DSCs):
  Obtain DSCs for all designated partners from certified agencies.
• Designated Partner Identification Numbers (DPINs):
  Apply for DPINs for all designated partners through the MCA portal.
• Select a Suitable Name:
  Confirm that the requested name is available and that it complies with with the LLP naming guidelines.
• Draft the LLP Agreement:
  Draft an LLP agreement outlining the rights, duties, and responsibilities of the partners. You can use the standard LLP agreement provided by the MCA or customize it as needed.
• Draft the LLP Agreement:
  Draft an LLP agreement outlining the rights, duties, and responsibilities of the partners. You can use the standard LLP agreement provided by the MCA or customize it as needed.
• Submit the Application:
  Submit the Form FiLLiP and all accompanying documents on the MCA portal.
• Certificate of Incorporation:
  Once the RoC approves the application, you will receive a Certificate of Incorporation. This signifies the official registration of your LLP.
• Obtain PAN and TAN:
  Apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the LLP through the NSDL website or a TIN Facilitation Center.

Compliance for Limited Liability Partnership

The compliance requirements for a limited liability partnership (LLP) in India are as follows:

• Annual compliance:
  
  • File an annual return with the Registrar of Companies (ROC) within 60 days of the end of the LLP's financial year.
  • File an account and solvency statement with the ROC within 30 days of the end of the six-month period after the end of the LLP's financial year.
  • Get the LLP's books of accounts audited if its annual turnover exceeds Rs. 40 lakh.
  • File the audit report with the ROC within 30 days of the receipt of the report from the auditor.
• Tax compliance:
  
  • File an income tax return for the LLP before 31st july of the end of the LLP's financial year.
  • Deduct tax at source (TDS) on payments made to employees and other third parties.
  • File TDS returns with the Income Tax Department on a monthly or quarterly basis.
• GST compliance:
  
  • Register for GST if the LLP's annual turnover exceeds Rs. 40 lakh.
  • File GST returns on a monthly or quarterly basis.
  • Pay GST on supplies made by the LLP.
• Other compliances:
  
  • Obtain a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the LLP.
  • Open a bank account in the name of the LLP.
  • Execute an LLP agreement between the partners.
  • Keep proper records of all financial transactions of the LLP.

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