Looking for Limited Liability Partnership Registration for Your Business?
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At BizSetupGlobal, we provide comprehensive accounting and compliance services designed to empower Limited Liability Partnership firms like yours to thrive and succeed.
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Decoding Limited Liability Partnership
The 2008 Limited Liability Partnership Act introduced LLP in India. LLPs were created to provide a simple business entity with limited liability for owners. Over 1.2 lakh Indians have registered LLPs since 2008.
LLPs are among India’s easiest to form and manage. Professionals, micro, and small family-owned or closely-held businesses prefer LLPs due to their easy incorporation and compliance requirements.
LLPs cannot issue equity shares, so businesses seeking equity funding from Angel Investors, Venture Capitalists, or Private Equity Funds should not use them.
The Ministry of Corporate Affairs, Central Government, registers LLPs in India. The State Government controls the Registrar of Firms, which registers partnership firms.
Important Features of LLP - Know the Facts
Limited Liability Protection
LLPs are better than traditional partnerships because one partner is not liable for another's misconduct or negligence. LLP owners have limited liability for the LLP's debts. Unlike private limited company shareholders, LLP partners can directly manage the business.
Fundraising
Process requires minimum fees, as well as very little paperwork, but the process varies depending on the country, state or province of residence.
Number of Partners
LLPs and Partnership Firms need two partners to register. LLPs can have unlimited partners after incorporation. If a partnership firm loses a partner due to death, incapacitation, or resignation, it dissolves. If the number of Partners drops below 2, the sole Partner can find a new Partner without dissolving the LLP.
Non-Resident Indian (NRI) & Foreign Ownership of LLP
Post changes to FDI regulations on 10th November 2015, 100% FDI in LLP is permitted under the automatic route. Therefore, FDI in LLP is now permitted, and NRIs or Foreign Nationals can start or invest in an LLP.
Benefits of LLP
Seperate Legal Entity
LLP is a separate legal entity from partners. Each partner can sue the other in case a situation arises.
Continuity
It has an uninterrupted existence that follows perpetual succession, i.e., the partners might leave, but the business remains. A term of dissolution has to be mutually agreed on for the firm to dissolve.
Flexible Agreement
Transferring ownership of LLP is also simple. A person can quickly be inducted in as a designated partner and ownership switches to them.
Suitable For Small Business
LLPs having capital less than 25 lakhs and turnover below 40 lakhs per year do not require any audits. It makes registering as LLP beneficial for small businesses and startups.
Acquire Property
An LLP can own or acquire property because it is recognised as a juristic person. Partners of LLP cannot claim the property as theirs.
No Owner / Manager Distinction
Partners own and run LLPs. Partners and LLP are separate legal entities. If necessary, each partner can sue.
Basic Registration Process of LLP
Obtaining DSC And DIN
Application For Name Approval
LLP Incorporation Certificate
LLP Agreement to be obtained within 30 Days of incorporation
Apply for Your PAN, TAN, & Bank Account
Online Registration Process
Select the package that suits you.
a. list of services purchased
b. documents to be submitted or next action.
Once documentation is complete, you will be informed about the next steps through email and sms, and you can also check the current status of your request in your personalised dashboard.
Make a payment, and you will receive your personalised dashboard login and password.
During the process, if you have any queries, you can raise the query through the Helpdesk system in your dashboard, and we will be happy to help we can have a call also if required.
At each step, our team will share all the required information needed by you and ensure that you have a smooth experience with us.
Once you submit the required documents, our Compliance Manager will review the documents and contact you in case of any discrepancies.
Key Registration Services: Tailored to Your Needs
Each LLP differs in terms of the functions, and mode of operations below registrations will be applicable on a need basis.
Important Features of LLP - Know the Facts
MSME Registration
MSME or Udyog Aadhaar registration to be obtained in the name of the business to establish that Partnership is registered with the Ministry of Micro, Small and Medium Enterprises.
Import Export Code
Import Export Code or IE code is obtained from the DGFT in case LLP business do export /import of from India.
TAN Registration
TAN registration must be obtained for LLP from the income tax department if the partnership firm is required to deduct any TDS while making any payments as per Income Tax Act 1961.
FSSAI Registration
In case LLP is involved in the selling of food products or handling of food products, FSSAI registration must be obtained from the Food Safety and Standard Authority of India in the name of LLP.
Current Account
A current account can be opened for LLP any banks in India.
Shop & Establishment
License Registration of Shop & Establishment license if needed as per the criteria.
GST Registration
GST registration must be obtained if LLP sells goods or services that cross the GST turnover threshold limit for registration. In most states, GST registration is required for service providers having annual revenue of more than ₹20 lakhs and, in the case of traders - annual revenue of more than ₹40 lakhs.
PAN of LLP
We will apply PAN for the newly constituted LLP.
Applicable Taxes and Annual Compliance
GST Return Filing
Income Tax Return Filing
Annual Return
Tax audit as required by Income tax act,1961
LLP has to make self-assessment tax on the basis of profit
Preparation of Financial Statements
MCA Annual return- LLP Form 8 & 11
DIN KYC of Designated Partners
Entire process will take 7 to 10 days (Approx)
Documents To Be Uploaded
- PAN Card and Address Proof: Submit the PAN card and address proof of all partners involved in the partnership.
- Proof of Principal Place of Business: Provide the necessary documents establishing the principal place of business for your partnership firm.
- Application for Registration of Partnership (Form 1): Complete and submit the application form for partnership registration.
- Certified Original Copy of Partnership Deed: Include the certified original copy of the partnership deed, outlining the terms and conditions agreed upon by the partners.
- Affidavit: Submit a specimen of an affidavit certifying the accuracy of the partnership deed and accompanying documents.
Note: One partner must self-attest the first three documents. In the case of foreign nationals or NRIs, all the documents must be notarised (if currently in India or a non-commonwealth country) or apostilled (if from a commonwealth country).
Indian Business Structure Requirments Comparison
| Criteria | Private Limited Company | One Person Company | Sole Proprietorship | Limited Liability Partnership | Partnership Firm |
|---|---|---|---|---|---|
| Ideal for Business | Startup & Growing Companies | Single Promoter | Small Traders & Manufacturers | Professionals Service Firms | Small businesses & Home Businesses |
| Requirements | 2 Directors/Shareholders | 1 Director/Shareholder | 1 Proprietor | 2 Partners | 2 Partners |
| Initial Investment | Not Required | Not Required | Not Required | Not Required | Not Required |
| Tax Advantages | Few benefits | Few benefits | Minimal | Most efficient | Minimal |
| Compliances | High | High | Minimal | Low | Minimal |
| Limited Liability Protection | Yes | Yes | No | Yes | No |
| Investment Options | Very easy to accommodate | Possible but unlikely | Not possible | Possible but unlikely | Not possible |
| Managing Cost | High | High | Very Low | Moderate high | Very Low |
| Paper Work | High | High | Very Less | Moderate high | Less |
| Perpetual Existance | Yes | Yes | No | Yes | No |
| Time Taken | 5-10 days | 5-10 days | 5-7 days | 5-10 days | 5-10 days |
Pay as You Grow
Pay as You Grow: Flexible Payment Options
We offer flexible packages to cater to your specific requirements: