Frequently Asked Questions
LLP which states Limited Liability Partnership is a business structure which is a combination of Partnership Firm and Company that means it gives flexibility and Limited Liability at a low compliance cost.
Limited Liability Partnership is registered as Start-up in India.
- Yes, we can register a Limited Liability Partnership (LLP) Online in India.
- The process of Limited Liability Partnership (LLP) is such that all Legal Documentation with Ministry of Corporate Affairs (MCA) can be submitted online.
STEPS TO FORM A LIMITED LIABILITY PARTNERSHIP
1. Reserve Limited Liability Name
2. Obtain Digital Signature Certificate (DSC)
3. Preparation of LLP Registration Documents
4. Filling FILLiP Form and affixing DSC
5. Upload Form with MCA
6. Obtain LLP Registration Certificate from MCA
7. Apply PAN and TAN
8. Drafting and filing LLP Agreement with MCA
9. Opening of Bank Account
10. Registration of GST
Following are the list of documents required for all the Designated Partners for Registration of Limited Liability Partnership.
1. Passport size Colour Photo
2. Copy of PAN – Self Attested
3. Copy of Aadhar Card – Self Attested
4. Copy of Latest Bank Statement – Self Attested
5. Copy of Latest Electricity Bill for Registered Office Address Proof
Digital Signature Certificate (DSC) Certificate is presented electronically to prove your identity, to access information or services on the Internet or to sign certain documents or Forms digitally manually.
Yes, it is mandatory for every Designated Partners to obtain Digital Signature Certificate.
Class 2 DSC is required for registration process of LLP in India
- Designated Partner Identification Number (DPIN) is a unique Identification number required for a person to become a Designated Partner of Limited Liability Partnership which is issued by MCA.
- DPIN is to be mentioned in documents while appointing a person as a designated partner of Limited Liability Partnership (LLP) in India.
It is important to check Name Availability of Limited Liability Partnership to avoid delay in the Registration process or lead to rejection of the application.
- Capital Contribution means the amount of Investment made by Designated Partner into a Limited Liability Partnership.
- Capital Contribution is the amount deposited in the Limited
Liability Partnership’s Bank Account by Designated Partners in the proportion mentioned in the LLP Agreement.
- LLP Agreement is byelaws or rules based on which important matters like main business of the LLP, capital or meetings is decided. This is a standard legal document prepared by Company Secretaries during registration of LLP.
- LLP Agreement is to be filed within 30 days of Incorporation. In case of any alteration in LLP Agreement, Supplementary Agreement is to be made which contains only details of the matter which are altered.
- PAN & TAN are obtained online after registration of LLP i.e. after receipt of Certificate of Incorporation.
- e-PAN and TAN allotment letter is mailed on the registered Email ID from NSDL.
- In case of Limited Liability Partnership hard copy PAN is issued by NSDL within 10 –15 days.
Yes. All Limited Liability Partnerships are supposed to open Bank Account after registration.
- Time duration majorly depends upon two factors time taken by Ministry for giving approvals and how quick clients provide their documents which are required for registration.
- Ideally it takes 5-7 working days to register a Limited Liability Partnership in India.
Yes, it is possible.
- Cost will depend on the Annual turnover and Capital Contribution of LLP.
- The annual Compliance includes 2 forms Form 8 and Form 11 which is to be filed with MCA.
- Yes, an existing partnership firm or a company that is unlisted can be converted into LLP.
- There are many advantages of converting a partnership firm into LLP; however, the same doesn’t apply for the conversion of a Company to a LLP.
Annual maintenance cost of a Limited Liability Partnership depends upon Turnover and no of transactions undertaken. Annual maintenance cost of Limited Liability Partnership is much lesser compared to Private Limited Company.
Following are the exhaustive list of advantages of registration of LLP in India
1. Convenient to start and manage
2. No minimum capital requirement
3. Lower Registration Cost
4. No Audit requirement upto turnover of 40 lacs or Capital Contribution of 20 Lacs
5. Lower Compliance burden
6. Taxation relief
- It is much cheaper to run an LLP than a Private Limited Company, particularly in your early start-up days.
- This is because many compliances, such as an audit, apply to LLPs only after their turnover is sizeable.
- Most LLPs spend about half as much as a Private Limited Company in their first year on registrations and compliance work.
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