Start your new
Limited Liability PartnershipStart your LLP within 2 weeks
₹ 9000/- (Except Govt. Fees) (DISCOUNT CODE APPLIED: GET50OFF) ₹ 4500/- Only Government fees and stamp duties Additional vary from state to state.
So why pay more? As a Sikkim state, it has the lowest charges while the Punjab state has the highest charges.
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About this Plan
Who should buy this package?
- A group of people (at least 2) who plan to start a business together wish to have a corporate identity.
- Small business (at least 2) planning to come together
- Entities looking to scale their operations
- Startups looking for corporate identity with minimum legal formalities
What services offered under this package?
- Brainstorm business ideas
- Application for DSC class 3 (1 no.)
- Reservation of the LLP name
- Drafting the LLP agreement
- Filing FiLLiP Form (Incorporation form)
- Receipt of Incorporation Certificate
- Filing Form 3 (Agreement details to MCA)
- Assistance in opening Bank Account
What details and documents are required?
- Photo of partners
- PAN & Aadhaar of partners
- Basic details of partners (Profit sharing ratio)
- Voter ID, Driving Lic, Passport (Any 1)
- Bank statement, Light bill, Phone bill (Any 1)
- The electricity bill for the registered address
- Rent Agreement/No Objection Certificate (Any 1)
"If you find that this plan is not for you, I can customize a plan for you."
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Frequently Asked Questions
What is the minimum capital requirement for LLPs?
There is no minimum capital contribution.
What is an LLP?
Limited Liability Partnership is the hybrid structure of Partnership and Company. It is governed by the Limited Liability Partnership Act 2008. It is one of the corporate businesses that offers the benefits of limited liability to its partners.
What is the audit requirement for LLP?
LLP must audit its accounts if the turnover is Rs. 40 lakh or more or when the total capital contribution is Rs. 25 lakh or more. The LLP auditor is appointed annually by the designated partners.
What is a Limited Liability Partnership?Limited Liability Partnership is the hybrid structure of Partnership and Company. It is governed by the Limited Liability Partnership Act 2008. It is one form of Corporate Business that offers the benefits of limited liability to its partners at a minimal compliance cost. Small businesses and Professionals mainly prefer this form as it is easy to form and operate. In an LLP, each partner shall be separately responsible or liable for his misconduct or negligence. In a nutshell, LLP is a partnership in which all the partners have limited liability & the right to manage the business directly.
What are the Characteristics of Limited Liability Partnership?
Separate Legal Entity
Unlike a partnership firm, the LLP is distinct from its partners. Thus, it is capable of entering into contracts and holding property in its name.
LLP has a perpetual succession that will continue to exist even after the retirement, insanity, insolvency, or even death of one or more partners. It shall continue to exist unless it is wind up under the relevant provisions of the law.
Unlike a partnership, LLP is an Independent structure, as one Partner's unauthorized actions do not make the other partners liable. Hence, all the partners Act as LLP agents.
The partners can devise the LLP agreement as per their choice, which shall govern their rights and duties. The LLP Act shall govern the rights and duties of partners where there is no agreement between them.
Number of partners required
At least 2 Partners are required to incorporate an LLP. However, there is no upper limit on the maximum number of partners in an LLP. Out of the partners, an LLP requires a minimum of 2 partners to be designated partners. It is mandatory to have one Designated Partner as a resident of India.
Capacity to sue and be sued
Since LLP is also a juristic legal person, it can sue and also be sued in its name. In addition to this, the partners shall not be liable to be sued for dues against the LLP.
Only if the annual turnover/contribution (in case of a business) exceeds 40 Lakhs or 25 Lakhs, respectively, the LLP comes under the purview of an audit by a Chartered Accountant.
What are Advantages & Disadvantages of Limited Liability Partnership?
|ADVANTAGES OF LIMITED LIABILITY PARTNERSHIP
|DISADVANTAGES OF LIMITED LIABILITY PARTNERSHIP
|LLP can quickly raise funds as it is eligible to accept Foreign Direct Investments subject to conditions.
|LLP is required to file and submit the Statement of accounts and solvency with the Registrar.
|The audit in the case of LLP is required when it fulfills the audit requirement, which is one of the most significant relief to the small businessman.
|The Partners' rights in an LLP can be inequal in case the LLP is structured that way.
|As compared to a Private Limited Company, the lesser amount of Compliance cost in case of LLP. Also, the process of incorporation and winding up of LLP is simple.
|If the LLP fails to make the compliances, it can pay heavy fines and penalties.
|The minimum capital requirement to start LLP does not exist.
|It requires consent from all partners in case any partner wants to transfer his Ownership Rights.
|It provides a lot of flexibility to manage the business as the partners can decide how to work in an LLP.
|The Venture Capitalists, Angel Investors, and Private Equity funds cannot invest in LLP.
|The other partners in the case of LLP are not liable in case of misconduct by any partner.
|The administration costs in the case of LLP are higher as compared to standard Partnership Firms.
SWOT Analysis of Limited Liability Partnership?
|Flexibility in operation
|Partner can arrange investigation in case of any dispute
|Limited liability of partners
|Financial disclosures can act as a hindrance to forming LLP
|Low legal costs
|Limited procedural formalities
|Professionals can form multi-disciplinary partnerships
|Delay in compliances can attract heavy fines and penalties.
|LLP can add foreign partnerships and investments easily
What are the basics to Incorporating a Limited Liability Partnership?
- A minimum of 2 partners shall be required to be appointed, either individual or body corporate.
- Minimum 2 partners are needed.
- At least 1 designated partners shall be resident of India
- The registered office of the LLP shall be a place of business in India.
- LLP can be started with any Capital amount as there is no requirement for any minimum capital contribution.
Can I convert my existing business into Limited Liability Partnership ?Yes, Any business structure can be easily converted into a LLP.
How much time is required to register a Limited Liability Partnership?The complete process of registration takes fourteen working days. However, nowadays, registering a firm has become a fast process as all documents are dragged in a single application form with MCA. It is a big step towards e-governance and for businesses who are looking for expansion of operations.
What is the process of Incorporation of a Limited Liability Partnership?
- Aligning all the Basic documents as listed above
- Review and Examination of all the above documents and information
- Procurement of Digital Signature Certificate
- Checking the availability of the proposed name of the LLP
- Drafting the agreement of the LLP
- Filing application for Registering the LLP under FiLLiP Mechanism
- After that, the Government and the Ministry shall take their own Processing time.
- Dispatch of Incorporation Kit to your address
What are Post Registrations required after Incorporation of Limited Liability Partnership?
- PAN / TAN Registration
- Shop & Establishment License or Ghumasta License or Gram Panchayat NoC (whichever is applicable)
- Profession Tax Enrollment Certificate for LLP and partners (For Maharashtra State)
- Profession Tax Registration Certificate (For Maharashtra State)
- FSSAI Basic Registration / License (If applicable)
- Import Export License (If applicable)
- GST Registration (If applicable)
- UDYAM / MSME Registration (If applicable)
What is Post Incorporation Compliance required for a Limited Liability Partnership?Registered LLP's in India are required to maintain the list of compliance under various regulations. Failure to maintain compliance can lead to penalties. Let us know more.
Filing Form 3
Soon after incorporation, LLP has to file a form 3 (LLP agreement) within 30 days.
Registration PAN TAN
Application for PAN Card & TAN Registration of LLP.
Appointment of auditor
The appointment of a statutory auditor is not mandatory unless the conditions for audit are satisfied.
Income Tax e-Filing
LLP registered in India must file an income tax return each year in Form ITR-5.
LLP's are required to file Annual Return within 60 days from the end of the close of the Financial Year and Statement of Account and Solvency within 30 days from the end of six months of the Financial Year's closing.
Partner must complete the DIN KYC procedure each year.