GoStartup is your go-to platform for registering your Limited Liability Partnership (LLP). With over 4000 businesses trusting us to handle their LLP registrations and ensure compliance with the law, you’re just a click away from the quickest and most cost-effective way to register your LLP in India.
Limited Liability Partnership (LLP) Registration in India
In 2008, India introduced the concept of Limited Liability Partnership (LLP) through the LLP Act, 2008. LLP has since become the preferred business structure among entrepreneurs due to its blend of limited liability and partnership flexibility. LLP shields partners from joint liability arising from the actions of other partners, making it an attractive option for professionals and small businesses. Recent amendments in 2022 by the Ministry of Corporate Affairs (MCA) have further streamlined the LLP registration process, making it more digital and transparent. Notably, LLPs now receive their Tax Deduction and Collection Account Number (TAN) and Permanent Account Number (PAN) along with the Certificate of Incorporation.
Understanding LLP
An LLP, or Limited Liability Partnership, combines the advantages of both companies and partnerships. It is formed by a minimum of two partners who execute an LLP Agreement. LLP partners enjoy limited liability, akin to company shareholders, and the entity enjoys perpetual succession like a company.
Key Features of LLP in India
- Separate Legal Entity: LLP is a distinct legal entity independent of its partners.
- Limited Liability: Partners’ liability is limited to their agreed contribution, protecting them from each other’s actions.
- Organizational Flexibility: LLP enjoys the flexibility of a partnership structure.
- Perpetual Succession: LLP continues to exist even if founding partners depart, provided there are at least two partners.
- Accounting Similarities with Companies: LLP follows accounting and filing requirements similar to companies.
- Minimal Compliance: LLPs have fewer compliance requirements compared to other business structures.
- No Minimum Capital Requirement: LLP formation does not necessitate a minimum capital contribution.
- Indian Resident Requirement: At least one LLP partner must be a resident of India.
- Unlimited Partners: There is no upper limit on the maximum number of partners in an LLP.
Benefits of LLP Registration in India
- Cost-effective and Low Compliance: LLP registration incurs lower costs and entails fewer compliance obligations compared to private or public limited companies.
- Limited Liabilities: Partners’ liabilities are limited to their capital contribution, protecting them from the actions of other partners.
- Separate Legal Entity: LLP enjoys a separate legal identity, enhancing credibility and facilitating transactions.
- Tax Advantages: LLPs enjoy tax exemptions and lower tax rates compared to companies.
- No Minimum Capital Requirement: LLPs can be formed with minimal capital, allowing for easier entry into business.
Types of LLP Forms in India
- FiLLiP Form: For LLP incorporation.
- Run LLP: For reserving an LLP name.
- Form 3: Details regarding LLP Agreement.
- Form 8: Statement of Account & Solvency.
- Form 11: Annual Return of LLP.
- Form 24: Application for striking off LLP name.
LLP Registration Checklist
- Minimum 2 Partners
- Digital Signature Certificate for all proposed Partners
- Designated Partner Identification Number (DPIN)
- Unique LLP Name
- LLP Agreement
- Proof of Registered Office Address
- Capital Contribution by Partners
Documents Required for LLP Registration
- PAN Card or Identity Proof of all Partners
- Proof of Registered Office Address (NOC, Utility Bills)
LLP Registration Process
- Obtain Digital Signature Certificate (DSC) for designated partners.
- File LLP incorporation documents online, digitally signed.
- Receive TAN, PAN, and Certificate of Incorporation upon approval.
LLP Compliance
Every LLP established in India must fulfill its statutory obligations by filing annual returns with the Ministry of Corporate Affairs (MCA) annually. Additionally, LLPs with a sales turnover exceeding Rs. 40 lakhs or capital exceeding Rs. 25 lakhs are mandated to undergo a statutory audit. Let GoStartup assist you in seamlessly managing your LLP compliance needs at a highly affordable rate.
Forms | Compliance | Due Date | Penalty |
---|---|---|---|
DIR-3 KYC | For every individual with DIN | Before 30th Sep every year | Rs. 5000 if the DIN is deactivated |
Form-11 | Annual Returns | 30th May | Rs. 100/day |
Form-8 | Statements of Accounts & Solvency | 30th October | Rs. 100/day |