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(LLP) is one of the various types of company structures that are common across the world. It is useful because it combines the advantages of a partnership business and a corporation into a single form of organization.

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Limited Liability Partnership (LLP) Registration in India Online:

Among the various types of corporate constitutions that are prevalent across the world is the Limited Liability Partnership (LLP). Furthermore, it has emerged as a favoured company structure for groups of entrepreneurs. It is useful because it combines the advantages of a partnership business and a corporation into a single form of organization.

Limited Liability Partnership (LLP) has become a popular business structure among Indian entrepreneurs. An LLP combines the advantages of a partnership with a corporation. An LLP, as the name implies, is a partnership firm formed by at least two participants who engage into an LLP agreement. However, the partners of an LLP have limited responsibility, and the LLP, like a corporation, enjoys perpetual succession.

In 2008, the idea of a Limited Liability Partnership (LLP) was established in India. In India, LLPs are governed under the Limited Liability Partnership Act of 2008. An LLP must be formed with at least two partners. An LLP, on the other hand, has no upper restriction on the number of partners it can have.

There should be a minimum of two authorized partners who must be natural people, with at least one of them residing in India. The LLP agreement governs the rights and obligations of chosen partners. They are directly accountable for ensuring that the terms of the LLP Act, 2008 and the LLP agreement are followed.

Partnership Firm in India

What Is Limited Liability Partnership?

A Limited Liability Partnership (LLP) is an entity created and registered in India under the Limited Liability Partnership Act, 2008. In brief, it refers to a partnership formed under the LLP Act. Aside from that, it is a separate legal entity with a continuous succession, comparable to a company.

The benefits of a partnership and a limited liability business are combined in a Limited Liability Partnership (LLP). It emerged in India after January 2009 and was an instant hit with startups and professional services. The objective of LLP formation was to establish a simple corporate structure that benefits owners with minimal liability.

Features of Limited Liability Partnership:

It has its own legal entity, much like a company.
To form an LLP, at least two people must join forces as partners.
The maximum number of partners has no upper limit.
There must be at least two designated partners.
At least one selected partner must be an Indian citizen.
Each partner's responsibility is limited to the amount contributed by the partner.
The formation of an LLP is inexpensive.
There will be less compliance and rules.
There is no requirement for a minimum capital contribution.
There are legal entities distinct from their partners, which means they can own assets, borrow money, sue or be sued in their own right.
Partners in an LLP are only liable to the extent of their agreed contribution to the LLP. This implies that the partners' personal assets cannot be utilized to pay off the LLP's debts.
It has perpetual succession, which implies that it exists even if the partners leave or change.
It can be administered by the partners or by selected managers. This enables a more adaptable management structure.

Advantages of Limited Liability Partnership:

Legal entity distinct from others:

An LLP, like a corporation, has its own legal entity. The LLP differs from its partners. An LLP has the ability to sue and be sued in its own right. Contracts are signed in the LLP's name, which helps to earn the trust of numerous stakeholders and provides consumers and suppliers with confidence in the firm.

The partners' responsibility is limited:

The LLP's partners have limited responsibility. The partners' responsibility is restricted to the contributions they make. This implies they are simply obligated to pay the amount of their contributions and are not personally liable for any losses in the firm. If an LLP becomes bankrupt at the moment of dissolution, only the LLP assets are responsible for debt repayment. Because the partners have no personal responsibilities, they are free to conduct themselves as reputable businesses.

Low cost and little compliance:

In comparison to organizing a public or private limited business, the expense of founding an LLP is modest. The LLP's compliance requirements are similarly minimal. The LLP is only required to file two statements every year: an Annual Return and a Statement of Accounts and Solvency.

Low cost and little compliance:

In comparison to organizing a public or private limited business, the expense of founding an LLP is modest. The LLP's compliance requirements are similarly minimal. The LLP is only required to file two statements every year: an Annual Return and a Statement of Accounts and Solvency.

There is no requirement for a minimum capital contribution:

The LLP can be established with no minimum capital. There is no requirement for a minimum paid-up capital before to incorporation. It can be founded with any capital contribution from the partners.

Disadvantages Of Limited Liability Partnership:

Non-compliance will result in a penalty:

The compliance an LLP must adhere to is modest. However, if these compliances are not fulfilled on time, the LLP will be fined heavily. Even though the LLP has no activity throughout the year, it is required to file yearly returns with the Ministry of Corporate Affairs (MCA). If it fails to file the returns, the LLP will face severe penalties.

LLP winding up and dissolution:

An LLP must have a minimum of two partners. The LLP will be dissolved if the minimum number of partners falls below two for six months. If the LLP is unable to pay its debts, it may be dissolved.

Raising finance is difficult:

The LLP, unlike a corporation, does not have the idea of equity or shareholders. Angel and venture capitalists are not permitted to become shares in the LLP. This is due to the fact that the shareholders must be partners in the LLP and must assume all of the obligations of a partner. As a result, angel investors and venture capitalists would rather invest in a firm than an LLP, making it harder for LLPs to obtain funds.

Eligibility Criteria Limited Liability Partnership Registration:

To be qualified for LLP business registration in India, the following requirements must be met:

In India, a Limited Liability Partnership must have at least two partners (no higher limit).
A natural person must be nominated to represent a body corporate if it is a partner.
Each partner must agree to contribute to the shared capital.
The authorized capital of an LLP should be at least one lakh rupees.
At least one selected partner must be a resident of India.

LLP Registration Process in India:

Accubucks solution provides an online service that allows you to register an LLP. While we make LLP registration online in few easy step procedure for you, the real registration process is complex, as stated below:

Step 1: Obtain DSC and DIN:

The directors' DSC is required for all forms that must be filed online. So, the first step is to obtain DSCs and DINs for two couples. We get the relevant data from you and file it on your behalf.

Step 2: Submit an Application for Name Approval:

We verify if the name you wish to register under is available and reserve it for your LLP at the same time. The MCA site allows you to check for name availability.

The registrar will only approve the name if the federal government does not find it objectionable. The name should not be similar to any of the existing partnership businesses, LLPs, trademarks, or corporate bodies.

Step 3: LLP Agreement:

The next stage is to prepare the LLP agreement and other registration documentation. An LLP agreement is essential in a limited liability partnership since it establishes the mutual rights and obligations of the partners as well as the LLP and the partners. As a result, our professionals take great care in preparing this agreement.

When the LLP is registered by completing Form 3 online on the MCA site, the partners engage in the LLP agreement. This step must be completed within 30 days after incorporation.

Step 4: Certificate of LLP Incorporation:

Our staff will submit all required paperwork and documents to the registrar. Once the registrar has approved all of the paperwork and documentation, you will receive your LLP incorporation certificate and will be virtually ready to start your firm.

Step 5: Get Your PAN, TAN, and Bank Account:

We will apply for your LLP's PAN, TAN, and bank account as soon as you receive the incorporation certificate.

Documents Required LLP Incorporation:

PAN Card/ ID Proof of Partners
Address Proof of Partners
Residence Proof of Partners
Photograph of Partners
Passport (in case of Foreign Nationals/ NRIs)
Proof of Registered Office Address
Digital Signature Certificate

Limited Liability Partnership Forms:

LLP forms are listed below with their name and purpose:

FiLLiP:

Form for incorporation of LLP

Form 1:

Form for reserving a name for the LLP

Form 2A:

Details of designated partners and other partners of LLP

Form 3:

Information about LLP agreement

Form 8:

Statement of Account and Solvency

Form 11:

Annual Return of Limited Liability Partnership (LLP)

Form 17:

Application and statement for the conversion of a firm into LLP

Form 18:

Application and statement for conversion of a private company/unlisted public company into LLP

Form 24:

Application to the Registrar of Companies for striking off name of LLP

Checklist for LLP Registration:

A minimum of two partners is required.
All selected partners will get DSC.
All designated partners must have a DPIN.
Name of the LLP that is distinct from any other LLP or trademark.
The LLP partners' capital contribution.
LLP The partners have reached an agreement.
Proof of the LLP's registered office.

LLP Amendment 2022:

In 2022, the Corporate Affairs Ministry (MCA) amended the Limited Liability Partnership Rules. This was announced on February 11, 2022. The new rules were supposed to take effect on April 1, 2022.

New regulations for renaming an LLP were incorporated in the modifications. There were also new guidelines for dealing with fines and appealing rulings. Form 16A and Form 33 CG, two new forms, had been added. There were also new costs rules for LLPs.

LLP (Amendment) Rules, 2022 Synopsis:

Rule 5 (Fees), 18, and 19 of the Limited Liability Partnership Rules were changed in the 2022 revision. It has also implemented several new rules:

Regulation 19A - This regulation governs the renaming of an LLP under Section 17(3).
Regulation 37A - This regulation governs penalty determination.
Regulation 37B - This regulation governs the appeal of an officer's judgment.
Regulation 37C - This regulation governs the filing of an appeal.
Regulation 37D - This regulation governs how the Regional Director handles appeals.

The amendment also included the following new forms:

Form 16A - This is used when a firm changes its name due to a failure to follow the Regional Director's instructions
Form 33 - This is used to file an appeal.

FAQs on LLP Registration Services

Question: Who may join an LLP as a partner?
Answer: An LLP can be formed by any individual or legal entity. Minors, people of unsound mind, and unliquidated insolvents, on the other hand, are not permitted to be partners in an LLP.

Question: Should an LLP have a board of directors?

Answer: An LLP does not have any directors. An LLP is not required to appoint directors or maintain a board of directors. An LLP's operations are managed by its partners. The partners make choices about the LLP's operations and business. As a result, an LLP must always have at least two partners.

Question: Is MoA and AoA required for LLP?

Answer: No, the Memorandum of Association (MOA) and Articles of Association (AOA) are critical papers for every business incorporated under the Companies Act of 2013. The LLP agreement, not the MOA and AOA, regulates the LLP. As a result, an LLP is not required to design the MOA and AOA. It is responsible for drafting the LLP agreement.

Question: What exactly is DPIN?

Answer: The Designated Partner Identification identifier (DPIN) is a one-of-a-kind identifier assigned by the MCA to an LLP's designated partner. The DPIN is analogous to a corporation director's Director Identification Number (DIN). When creating an LLP, any individual can receive a DPIN, or a person can subsequently apply for a DPIN to become a designated partner of an existing LLP.

Question: What is the LLP income tax rate?

Answer: An LLP's income tax rate is 30% of total income. In addition, depending on the LLP's yearly income and the applicable tax legislation, a surcharge and health and education cess may apply.

Question: Exactly what is an LLP Agreement?

Answer: The LLP Agreement is a legal contract that describes the rights, duties, and obligations of Limited Liability Partnership (LLP) partners. It oversees the LLP's internal operations, profit sharing, decision-making, and conflict resolution.