WHAT IS LLP COMPANY REGISTRATION?

Limited Liability Partnership (LLP) introduced in 2008 is a prominent legal business structure in India having fewer legal compliances, as the name suggests LLP limits the liability of its partners & lends protection from the incompetence or misdeeds of the other partners. LLP registration is one of the simplest forms of business to incorporate and manage in India.

Also, LLP is less expensive to incorporate and maintain than a Private Limited Company & serves as a better option from a tax perspective.

LLP company registration is preferred by Professionals, Medium and Small businesses due to the simple incorporation procedure and lesser compliance formalities. LLPs are incapable of issuing equity shares, It should thus, not be used for any business that requires raising equity funds during its existence.

REASONS TO OPT FOR LLP

LIMITED LIABILITY

In a Partnership, partners are personally liable for all their debts, if it is not repaid by the business, the partners would have to sell their personal assets. But with an LLP company registration, only the invested capital in commencing the business would be lost, the personal properties of the partners would be safe.

EASY TRANSFERABILITY

The ownership can be easily transferred to another person by the introduction of a new partner in the LLP registration. Since it is a separate legal entity, changing the Partners, won’t change the ownership of the LLP.

PERPETUAL SUCCESSION

An LLP is a business entity having perpetual succession that means continued existence until it is legally dissolved or wound up. LLP is unaffected by the death or removal of any Partner as it has a separate legal identity. Thus, an LLP continues to exist irrespective of the changes made in ownership.

FEWER LEGAL COMPLIANCES

LLP registration in Mumbai is most suitable for startups and small businesses that are commencing their operations and wish to have minimal legal compliance related formalities. It does not require an audit if it has a turnover of less than Rs. 40 lakhs and capital contribution less than Rs.25 lakhs. It thus has fewer structural changes than a private limited company.A private limited partnership offers legal protection to its shareholders but restricts its ownership. It is relatively convenient to manage and run the company with a possibility of expansion for growing companies. Also, it is easy to dissolve and wind up the company.

A private limited partnership offers legal protection to its shareholders but restricts its ownership. It is relatively convenient to manage and run the company with a possibility of expansion for growing companies. Also, it is easy to dissolve and wind up the company.

DOCUMENTS REQUIRED FOR LLP REGISTRATION IN MUMBAI

1. FOR DIRECTORS & SHAREHOLDERS

  • Copy Of PAN OR Passport (For NRI’S)
  • Copy Of Voter’s ID OR Passport OR Driver’s License
  • Copy Of Latest Bank Statement OR Electricity Bill OR Telephone Bill
  • Passport sized photographs
  • Specimen Signatures

2. FOR REGISTERED OFFICE

  • Copy Of Latest Bank Statement OR Electricity Bill OR Telephone Bill
  • Copy Of Notarized Agreement of the rent (English)
  • Copy Of Property owner’s NO-Objection certificate
  • In case of owned property, Sale deed (English)

LLP REGISTRATION PROCEDURE

To get LLP registration in Mumbai, DSC (Digital/E-signature) of the partners & DPIN (Designated Partner Identification Number) can be obtained within 5 to 7 days.

Name Approval from any of the maximum six options given by the company to the MCA should ideally be suggestive of the business entity & unique.

Incorporation documents should be submitted to the MCA with an application for incorporation. MCA will then approve the application for incorporation of LLP in 10 to 12 days.

The Certificate of Incorporation shall be accepted at the end of this process.

Every LLP company registration requires a registered Permanent Account Number (PAN) and Tax Account Number (TAN).PAN and TAN will then be couriered to the registered office address in 21 working days.

Read more

 

Whether you are a professional seeking to collaborate with peers or a business looking for a robust structure considering LLP business structure, we can help you unlock the power of Limited Liability Partnerships (LLPs) for your business. Contact us to get details on our LLP registration service. 

FAQ's

LLP stands for Limited Liability Partnership. It is a business structure that merges the benefits of both- a limited liability company as well as partnership. LLPs are governed by the Limited Liability Partnership Act 2008 in India. The key features of an LLP registration in India are limited liability, separate legal entity, perpetual succession, flexibility in management, no minimum capital requirement, and partnership taxation.

To incorporate an LLP in India, you need a minimum of two partners, with at least two designated partners, one of whom should be an Indian resident. The proposed LLP name should be unique and comply with naming guidelines. You must have a registered office in India, obtain Digital Signature Certificates (DSCs) for designated partners, and submit address proof, identity proof, and photographs of the designated partners with their consent.

There is no maximum limit on the number of partners in an LLP company registration in India. You can have any number of partners if there are at least two to form and operate the LLP.

The main purpose of an LLP is to provide a flexible business structure with limited liability protection. It allows professionals and entrepreneurs to work together while limiting personal liability for the actions of other partners.

For LLP registration, you need an LLP Agreement defining the rights and obligations of partners, along with address proof, identity proof, and photographs of designated partners. The application for incorporation, DIN forms, and DSCs of designated partners are also required for online filing.

A company that has LLP registration in Mumbai can reap the benefits of limited liability and flexibility of a partnership business. The requirement for compliance is much less in an LLP as compared to any other company or business structure.

Having an LLP company registration can give an organization benefits like having limited liability, a separate legal entity, minimal regulatory compliance, property ownership, no requirement for audit, continuity of existence of the LLP, free transferability of ownership and taxation benefits.

According to section 5 of the LLP Act, 2008, it is clarified that only a corporate body or an individual may be a partner in a Limited Liability Partnership. An individual that subscribes their name to an incorporation document will be considered as the first partner of the company under LLP registration. Any other person in accordance with LLP registration in Mumbai can become a partner.