Limited Liability Partnership Registration The Limited Liability Partnership Act 2008 defined limited liability partnership as a corporate or incorporates body formed under this act. LLP has its separate legal entity from its partners and has perpetual succession. The changes in the partners will not affect the existence, rights, and liabilities of the LLP. Limited Liability Partnership is an alternative corporate business form that gives the benefits of the flexibility of a partnership and limited liability of a company. LLP has the capability to enter into any contracts and holding of property in its own name. The Limited Liability Partnership has a separate legal entity, who is liable to the full extent of its assets, but the liability of the partners is limited according to the agreed contribution in the LLP. However, no partner will be liable for any unauthorized and independent actions of the partners. Therefore, individual partners are jointly liable for the wrongful business decisions or misconduct of other partners. An agreement between the partners decides the mutual rights and duties of the partners within a LLP. The LLP, however, is not relieved of the liability for its other obligations as a separate entity. Process of LLP Registration in India Things to consider before LLP Name Selection Things to consider before LLP Name Selection

It must be easy to remember, simple and short

The name has to be unique and different from others

The meaning of the LLP name helps people to recognize LLP and establish the branding and trademark

The LLP name must not be offensive to any caste, religion, race, community and society

The LLP name must not be against the public policy and not against the Local/State/Central government

The name must not be similar to any other existing LLP

The LLP name must not have any prohibited word against any law prevailing in India

Requisite of approval for the word such as ‘Finance’, ‘Bank’, ‘Insurance’, ‘Mutual Fund’ in the LLP name from the concerned authority like SEBI, RBI, IRDA etc Steps for Limited Liability Partnership Registration The first step is to find and reserve the name for the LLP. Filing of e-form 1 by the Designated partner to check the availability of the LLP name.

The name is then reserved by the Ministry for the applicant for the time duration of 90 days. If the LLP incorporation is not done by the applicant within 90 days, it would be deemed to be rejected and will be made available for others.

The applicant files an e-form 2 for the incorporation of new LLP by mentioning all details of the Nominated and Designated partners in it.

The expressed consent required of all the partners, including Designated Partners for the particular role.

After following the above procedure, the applicant files an e-form 3 for the LLP Agreement within 30 days of the LLP incorporation. According to Section 23 of the Limited Liability Partnership Act 2008, the LLP agreement is mandatory. Why to Choose LLP Incorporation in India? The LLP carries all good advantages of the Partnership Firm and also covers the unique features of the Private Limited Company.

LLP has less cost of compliances than of the Company.

The taxes that are exempted in the case of LLP, such as Wealth Tax, Surcharge, and Dividend Distribution Tax.

LLP has Limited Liability which is beneficial for the business

There is less cost in the incorporation of the LLP

There is no audit requirement up to 40 lakhs in the LLP Documents for LLP Registration PAN card details of all the partners

Identity Proof such as Aadhaar card, PAN card, Driving License, Voter Id of all the designated and nominated partners;

Address Proof of all the proposed partners of the LLP.

Obtain No Objection Certificate from the landlord of the business place.

DSC or Digital Signature Certificate of the designated partners

DPIN or Designated Partner Identification Number of all the designated directors

Passport in the case when a partner is NRI or foreign national

Utility bill such as telephone, gas, water or electricity bill of the registered office as a residential proof of the business place. It should not be older than 2 months.; Penalities for LLP on Non-compliance In accordance with Section 35 of the LLP Act 2008, the LLP has to file Form 11 with ROC for Annual Return within 60 days. In case of the non-filing, Rs 100 per day is charged as penalty.

In accordance with Section 34 of the LLP Act 2008, the LLP has to file Form 8 for a statement of Account and Solvency within 30 days. In case of the non-filing, Rs 100 per day is charged as penalty.

The LLP has to file an income tax return in ITR 5. If in case of the non-filing of the return, the penalty is levied on the LLP. How Enterslice helps you to get Limited Liability Partnership Registration Fill The Form Get a Callback Submit Document Track Progress Get Deliverables Frequently Asked Questions Do I need to be present during this registration process? LLP registration in India is 100% online process. No need to be present physically to our office or ministry of corporate affairs. We will send our person to your home or office for document signature. Who can be a partner in an LLP? Any individual, company or foreign national can be a partner in an LLP. What is the LLP Agreement? LLP Agreement defines the internal constitution of the partnership, overall mission, vision, business objectives of the organization firm in log run. Do I need to hire a full-time CA/ CS? No. you do need not hire a full-time CA or CS. We will offer your annual compliance package through you will get the right advice from our team. How much time is required for registering a Limited liability partnership in India? Usually, we register an LLP in maximum 10 business days. What are the rules for choosing a name for a Limited liability partnership? Per companies act, LLP Name should be unique, and business objectives should be added with the name. Also, do care that business name and legal should be different. What is the minimum number of partners required to register LLP? According to the LLP Act 2008, a minimum of two designated partners is required to register an LLP. The designated partners are responsible for the overall operations of the firm. Who prefers to register LLPs? The professionals like CAs, CS, Advocates, engineers, doctors prefer to register an LLPs. The Conversion of LLP to a private limited company is tough. In an LLP Venture funding is almost impossible. Has LLP less annual maintenance cost as compared to the private limited company? LLP has 1/3 annual maintenance cost than a private limited company. Typically you can manage your LLP in just Rs. 12,000 in a year. What will be the consequences of failure to register agreement after LLP registration? Nonsubmission of Partnership Agreement with MCA within 30 days of successful LLP registration has a two-fold effect: Firstly, the registered LLP will be liable to pay a penalty of Rs. 100 per day of default. And there is no specified upper limit for the penalty amount. Secondly, in case of non-filing of partnership agreement mutual rights and liabilities of the Designated Partners and Partners will be as dictated in Schedule I of LLP Act, 2008. In the case of FDI is there any mandatory performance targets specified? No, FDI can be received free of any performance linked conditions. an example of such performance linked conditions is foreign remittance to NGOs. What is the difference between Partners and Designated Partners? On the case of LLP partner is a general term. Any no. of people can be appointed as a partner but at least 2 people must be named as a designated partner. Designated partners are responsible for doing all the necessary act and make sure that all the provisions are adhered to and compliances are done on time. In case of any default, such designated partners are liable to pay off penalties imposed on LLPs. Who will be appointed as designated partners in case all the partners are corporate bodies? Designated partners must be individuals. Thus, in case all the partners are corporate bodies atleast 2 such partners must appoint their authorized representatives as designated partners to the LLP. What is Contribution in LLP? Whatever partners to an LLP contribute to it to run the business is termed as a contribution. Contribution can be in the form of any of the following: 1. Cash 2. Promissory notes 3. Agreements 4. Tangible or Intangible Property 5. Movable or immovable property etc. Is it mandatory to contribute in order to become a partner in LLP? No. Nowhere in the Act is it specified that partners need to put in contribution in the LLP. LLP registration can be done with NIL contribution. Instead of a fresh LLP registration can a partnership firm or company convert into an LLP? The answer is yes. One can convert partnership firm or company registered under Companies Act, 2013 into a Limited liability Partnership.

For Partnership Firm to LLP conversion following Forms are required to be filed: LLP RUN for name approval From 17 to the conversion application Form 2 for incorporation application Form 3 with the partnership agreement For Company to LLP conversion following Forms are required to be filed: LLP RUN for name approval Form 18 to the conversion application Form 2 for incorporation application Form 3 with the partnership agreement Under which act LLP registration is done? The LLP is governed by the Limited Liability Partnership Act 2008. How to check the LLP registration status? One can visit the MCA website then to MCA services then click on to LLP services to check the status of LLP registration How to download the LLP registration certificate? Step 1 Visit to the “MCA website.” Step 2 “Get Certified Copies” tab under “MCA Services.” How to cancel LLP registration? MCA has introduced an LLP Form 24. One can make an application to the Registrar for striking off the name of LLP. Which is better LLP or Private Limited Company? The LLP has less cost of compliances and has more tax benefits as compared to Private Limited Company How is LLP different from the partnership? The LLP has a separate legal entity and has perpetual succession, whereas the Partnership has lacked these two features. The LLP also has limited liability as partners in the Partnership firm has no limited liability. How can LLP raise funds? In the LLP, the capital is raised privately from partners. However, the LLP can raise funds other than its partners in the form of loan from the financial institutions. What is DPIN for LLP? Designated Partner Identification Number (DPIN) applied by the two designated partners, and at least one of them obtains DPIN, who will get an authority to work in case of legal, taxation, and compliance matters. How to add partners in LLP? The new Partner can join the LLP by filing Form 6. Then the person is admitted as a new Partner after the LLP Form 4 has been filed within 30 days from the date he/she becomes Partner in the LLP. LLP Form 4 must be signed by an existing Designated Partner. What is LLP Form 3? The person applying to be a designated partner of an existing LLP firm has obtained a DPIN must file e-Form DIR-3 under the Companies (Appointment and Qualifications of Directors) Rules, 2014. What is LLP form 11? LLP Form 11 is to be filled by all LLPs irrespective of turnover for an annual return during the year. Even when an LLP does not carry out any operations or business during the financial year, Form 11 needs to be filed. How many partners in LLP? Minimum Two partners are required to start an LLP, and there is no maximum limit of partners in the LLP