Description

Limited Liability Partnership

Basic Offer

₹ 7,500/- (inclusive all)

  • 2 Digital Signature Certificates
  • 1 Name Approval Application under RUN
  • Stamp duty on INR 1 Lakh Authorized Capital
  • LLP Incorporation
  • PAN
  • TAN

Combo Offer

₹ 10,500/- (inclusive all)

  • 2 Digital Signature Certificates
  • 1 Name Approval Application under RUN
  • Stamp duty on INR 1 Lakh Authorized Capital
  • LLP Incorporation
  • PAN
  • TAN
  • MSME
  • GST Registration
  • First 3 Month GST Return

Documents Requirements

  • PAN Card

PAN Card of all partners.

Foreign nationals may provide passport.

  • Partners Address Proof

Aadhar Card/ Voter ID/ Passport/ Driving License of all partners

  • Photograph   

Latest Passport size photograph of all partners.

  • Business Address Proof

Latest Electricity Bill/ Telephone Bill of the registered office address

  • NOC from owner

No Objection Certificate to be obtained from the owner(s) of registered office.

  • Rent Agreement

Rent Agreement of the registered office should be provided if any

Procedure

Day 1 – 2

  • Review of documents and information provided
  • Application for Digital Signature Certificate

Day 3 – 5

  • Checking LLP Name availability
  • Application for Name Reservation under “LLP-RUN”
  • Reservation of LLP Name

Day 7 – 10

  • Drafting the LLP incorporation document
  • Filing application for LLP registration
  • Application for DIN allotment of Designated Partners
  • Certificate of LLP Incorporation

Day 11-15

  • Application for PAN and TAN of LLP
  • Drafting of LLP Agreement
  • Payment of Stamp Duty
  • Filing of LLP Agreement
  • Government processing time

KnowLedge Portal

What is Limited Liability Partnership?

A limited liability partnership is a partnership consisting of partners whose liability is limited to the capital invested by each for starting the business. In an LLP, your personal property is not liable for the firm’s debts. Moreover, an LLP is a corporate body having a legal entity independent of the partners who are a part of the organization.

The Limited Liability Partnership (LLP) integrates the ease of running a Partnership along with the separate legal entity status and limited liability aspects of a company. What’s more, is that such an entity has minimal compliance requirements and need not conduct an external audit of its books until it has a turnover of Rs. 40 lakh per year or a paid-up capital contribution of Rs. 25 lakh.

Advantages of Limited Liability Partnership

1.Separate legal entity

An LLP is a separate legal entity. This means that it has assets in its own name and can sue and be sued. Furthermore, one partner is not responsible or liable for another partner’s misconduct or negligence.

2.No owner/manager distinction

An LLP has partners, who own and manage the business. This is different from a private limited company, whose directors may be different from shareholders. For this reason, VCs do not invest in the LLP structure.

3.Flexible agreement

The partners are free to draft the agreement as they please, with regard to their rights and duties.

4.Limited liability

The liability of the partners is limited to the extent of his/her contribution to the LLP. Unless fraud has been detected, the personal assets of the partner are protected from any liability of the LLP.

5.Fewer compliance requirements

An LLP is much easier and cheaper to run than a private limited company as there are just three compliances per year. On the other hand, a private limited company has a lot of compliances to fulfil and conduct an audit of its books.

6.Easy to wind-up

Not only is it easy to start, but it’s also easier to wind-up an LLP, as compared to a private limited company. While it still takes two to three months to complete this process, it can take over a year to close a private limited company.

Frequently Asked Questions

1.Can an existing partnership firm be converted to LLP?

Yes, an existing partnership firm can be converted into LLP by complying with the Provisions of the LLP Act.

2.Can an existing company be converted to LLP?

Yes, any existing private company or existing unlisted public company can be converted into LLP by complying with the Provisions of the LLP Act.

3.Can LLP give any other address (besides its registered office) for the purpose of receiving communication from Registrar?

LLP shall have an option to declare one more address within the jurisdiction of same ROC (other than the registered office) for getting statutory notices/letters etc. from Registrar.

4.What is the basic difference between a Limited Liability Partnership and a General Partnership?

A Limited Liability Partnership is a legal entity separate from its partners and therefore, offers limited liability to its partners whereby any debts and obligations of the LLP will be borne by the assets of the LLP. In the case of a conventional partnership, the partners are jointly and severally liable for each debt and obligation of the partnership firm.

5.How can a person become a partner of an LLP?

Persons, who subscribed to the “Incorporation Document” at the time of incorporation of LLP, shall be partners of LLP. Subsequent to incorporation, new partners can be admitted to the LLP as per conditions and requirements of LLP Agreement.

6.Whether any Annual Return would be required to be filed by an LLP?

Every LLP would be required to file Annual Return with ROC. A duly authenticated Annual Return in e- Form-11, is to be filed with the Registrar, together with the prescribed fee, within a period of 60 days from the closure of every financial year.