LLP Registration
Ideal business structure for Small and Medium-sized
Enterprises going for Partnership.
What is LLP Registration?
LLP refers to Limited liability partnership and is governed by the Limited Liability Partnership Act 2008. Limited Liability partnership provides an advantage of limited liability to its owners and at the same time requires minimal maintenance. The directors of a private limited company have limited liability to creditors. In case of default, banks/creditors can only sell the company’s assets and not the personal assets of directors.
Choose LLP Because
Documents Required
Minimum Requirements
Steps Involved in LLP Registration
Application of DSC & DPIN
Our very first step in this direction would be getting Digital Signature Certificate (DSC) and Designated Partner Identification Number (DPIN) for the proposed Partners of the LLP. Within a timeframe of 5 to 7 working days, DPIN and DSC can be obtained for the proposed Partners. If the partners already have DSC and DPIN, then this step can be skipped.
Name Approval
A minimum of one and a maximum of six proposed names are required to be given to the MCA. Subject to availability, naming guidelines and MCA processing time, we will get back to you with the Name approval within 5 to 7 working days. Names provided should ideally be unique and suggestive of company business.
MOA & AOA Submission
Once the name is approved, one needs to draft Memorandum of association and Articles of Associate. Both MOA and AOA are filed with the MCA with the subscription statement
Get Incorporation Certificate
Incorporation documents can be submitted to the MCA along with an application for incorporation. MCA will usually approve the application for incorporation in 5 to 7 days, subject to their processing time. Incorporation certification is a proof that company has been creation. It also includes your CIN number.
Apply for PAN, TAN and Bank Account
Then you need to apply for PAN and TAN. PAN and TAN are received in 7 working days. Post this, you can submit the Incorporation certificate, MOA, AOA and PAN with the bank to open your bank account.
Advantages of LLP
Separate Legal Entity
A LLP is a legal entity and a juristic person established under the Act. The partners are distinct from the entity and both can sue each other and get sued in the process.
Uninterrupted Existence
A LLP has ‘perpetual succession’, that is continued existence until it is brought on the terms of the dissolution by mutual agreement within the partners. Partners may come and go, but an LLP goes on.
Audit not Required
Entrepreneurs earning a turnover of fewer than 40 Lakhs and a capital contribution of less than 25 Lakh need not get their accounts audited. Therefore, LLPs are ideal for startups and small businesses that are just starting their operations and want to have minimal regulatory compliance related to formalities.
Easy Transferability
The ownership of an LLP can be easily transferred to another person. All you need is to induct them as a Designated Partner of the LLP. LLP is a separate legal entity separate from its Managing Partners, so by changing the Managing Partners, the ownership of the LLP can be changed.
Owning Property
An LLP being a juristic person, can acquire, own and enjoy property in its own name. And this is entirely distinct from its partners. No Partner can make any claim upon the property of the LLP so long as the LLP is a going concern.
Limited Liability
The biggest advantage is Limited Liability, which means the status of being legally responsible only to a limited amount for debts of an LLP. Unlike proprietorships and partnerships, in an LLP the liability of the members in respect of the LLP’s debts is limited. The personal assets of the directors are safe if the company goes bankrupt. So it’s entirely a win-win situation for you if you plan to step to head forward with a suffix LLP.
Start LLP Registration
Fill up the form below and our executive will get in touch with you very shortly.
