Limited Liability Partnership (LLP)

Overview

A limited liability partnership is a mixture of a conventional partnership, and a company as some of its features are almost like a conventional partnership and a few matches with a company. LLP is required to possess a minimum of two Designated Partners who shall be individuals and a minimum of one among them shall be a Resident of India. The mutual rights and duties of partners shall be governed by the agreement between LLP and therefore the partners.

LLP registration procedure is that the easiest and transparent process. Incorporating a limited liability Partnership is online, easy, seamless, cheapest, and quickest with Book My Consultant. Also, file your LLP Annual filing with Book My Consultant!

Comparison between Partnership & Limited Liability Partnership

Basic of Comparision	Partnerhsip	Limited liablity
Meaning	Partnership refers to an arrangement wherein two or more person agree to carry on a business and share profits & losses mutually.	Limited Liability Partnership is a form of business operation which combines the features of a partnership and a body corporate.
Governed By	Indian Partnership Act, 1932	Limited Liability Partnership Act, 2008
Registration	Optional	Mandatory
Charter document	Partnership deed	LLP Agreement
Liability	Unlimited	Limited to capital contribution, except in case of fraud.
Contractual capacity	It cannot enter into contract in its name.	It can sue and be sued in its name.
Legal Status	Partners are collectively known as firm, so there is no separate legal entity.	It has a separate legal status.
Name of firm	Any name	Name containing LLP as suffix
Maximum partners	100 partners	No limit
Property	Cannot be held in the name of firm	Can be held in the name of the LLP
Perpetual Succession	No	Yes
Audit of accounts	Not mandatory	Mandatory, only if turnover and capital contribution overreaches 40 lakhs and 25 lakhs respectively.
Relationship	Partners are agents of firm and other partners as well.	Partners are agents of LLP only

Our Process

Estimated time to complete the process – 11-13 working days

Step 1

Initial Discussion & collection of Basic information

Step 2

Apply to Name Availability of the proposed LLP

Step 3

Collection & Verification of Documents

Step 4

Apply for Digital Signature Certificate (DSC)

Step 5

Preparation of LLP Agreement & other documents

Step 6

Filing of LLP Agreement with ROC & Obtaining DPIN along with duty payments

Step 7

Get LLP Incorporation Certificate

Step 8

Application for PAN & TAN

Step 9

Dispatch of deliverables.

Choose Your Package

All Inclusive Pricing – No Hidden Fee

Basic
- ₹ 7700
- - 2 DSC (Digital Signature) For Partners
  - DIN for Designated Partners
  - LLP Name Approval
  - LLP Agreement Drafting & Execution
  - PAN & TAN Card of LLP
  - Certificate of LLP Incorporation
  - Bank Account Opening Support
  - Stamp duty & Registration Charges
  - Incorporation Fees
  - GST Registration
- Purchase Now

Premium
- ₹ 11000
- - 2 DSC (Digital Signature) For Partners
  - DIN for Designated Partners
  - LLP Name Approval
  - LLP Agreement Drafting & Execution
  - PAN & TAN Card of LLP
  - Certificate of LLP Incorporation
  - Bank Account Opening Support
  - Stamp duty & Registration Charges
  - Incorporation Fees
  - GST Registration
  - E Way Bill Portal Registration
  - Accounting Software
  - 3 Month GST Return Filing
  - MSME Registration
- Purchase Now

Ultimate
- ₹ 20000
- - 2 DSC (Digital Signature) For Partners
  - DIN for Designated Partners
  - LLP Name Approval
  - LLP Agreement Drafting & Execution
  - PAN & TAN Card of LLP
  - Certificate of LLP Incorporation
  - Bank Account Opening Support
  - Stamp duty & Registration Charges
  - Incorporation Fees
  - GST Registration
  - E Way Bill Portal Registration
  - Accounting Software
  - 1 Year GST Return Filing
  - MSME Registration
  - Income Tax Return Filing
  - 1 Year LLP Roc Filling
- Purchase Now

Benefits

Limited Liability of Partners

Liability of monetary contribution of any partner is restricted to the capital contribution as per the LLP agreement. Many new-startup businesses prefer LLP registration over the partnership in order that their personal assets remain safe just in case of loss, or maybe insolvency.

No Minimum Capital

No minimum capital is required for LLP Formation. No minimum capital offering is required from partners. A Limited Liability Partnership is often registered even with Rs. 1000 as an overall capital contribution.

Separate Legal Existence

Registration of LLP creates a separate legal identity from its partners. Governed by the LLP Act of 2008,

LLP Audit

In the case of LLP, no necessary Audit is required. The audit is required only for the turnover of the company exceeds Rs 40 lakhs and where the contribution overtakes Rs 25 lakhs.

LLP Tax Benefits

It is also free from various taxes like dividend distribution tax and minimum alternative tax. the rate of tax on LLP is a smaller amount than as compared to the company.

Multiple Relationships

A person is often a partner, employee, or creditor of a limited liability Partnership. There could also be separate contracts with an equivalent person in numerous capacities.

Documents Required

Documents to be submitted by Partners

Scanned copy of PAN Card or Passport ( Foreign Nationals & NRIs)

Scanned copy of ADHAR Card /Voter’s ID / Passport/ Driver’s License

Scanned Copy of latest bank statement/ telephone/ mobile bill or electricity/ gas bill

Scanned passport-sized photograph specimen signature blank document with signature [partners only]

Consent of Partners to act as a Partner.

Documents for a registered office

Scanned copy of the latest bank statement/ telephone/ mobile bill, or electricity or gas bill

Scanned copy of the notarized rental agreement in English

Scanned copy of No – objection certificate from the property owner

Scanned copy of sale deed/ property deed in English (in case of owned property)

Clear All Your Doubts !

How many members are required to start a limited liability partnership in India?

Limited Liability Partnership can be started merely by Two Partners and can have as many partners as it wants. However, out of all the partners in LLP at least one of the partners should be an Indian resident Individual

Who can become a partner in LLP?

An Individual or company or any other LLP can become a partner in LLP. In the case of an Individual partner, his age should be at least 18 years and should not be held liable for any offense. However, an LLP should have at least two individuals as a partner

Can NRI be the partner of the LLP?

Yes, there is no restriction of NRI for becoming a partner in LLP. The only condition is that out of all Individual Partners, at least one of them should be an Indian resident.

Can an existing partnership firm be converted to LLP?

Yes, an existing partnership firm is often converted into LLP by complying with the provisions of the LLP Act.

I wish to begin my business, but I'm confused between Private Ltd. and LLP, what should I select?

Pvt. Ltd. Co. and LLP have plenty of similarities, yet, they both are different in many of their characteristics and structures. Once you wish to start your business, many factors that you must think about before selecting any business structures. However, before selecting any business structure, you'll refer to LLP vs Pvt Ltd- A comparison between two important kinds of organizations in India.

Can an existing company be converted to LLP?

Yes, any existing private company or existing unlisted public company is often converted into LLP by complying with the provisions of the LLP Act.

Can LLP give any other address (besides its registered office) to receive communication from the Registrar?

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

What is the fundamental difference between a limited liabilities Partnership and a General Partnership?

A limited liabilities partnership is a legal entity separate from its partners and thus, offers limited liability to its partners whereby any debts and obligations of the LLP are going to be borne by the assets of the LLP. Within the case of a conventional partnership, the partners are jointly and severally liable for each debt and obligation of the partnership firm.

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. After incorporation, new partners are often admitted to the LLP as per the conditions, and requirements of the LLP Agreement.

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

Every LLP would be required to file an 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 60 days from the closure of every financial year.

What are the documents required to be filed by an LLP annually?

LLP is required to file LLP annual returns as follows:

LLP Form 8 (Statement of Account & Solvency) and LLP Form 11 (Annual Return) annually. The ‘Annual Return’ is required to be filed within 60 days of the close of the financial year and ‘Statement of Accounts & Solvency’ shall be filed within 30 days from the end of six months of the financial year to which it relates. Every LLP has got to maintain a uniform financial year ending on 31st March of a year.

How can I apply for reserving LLP Name?

File LLP Form No. 1 (Application for reservation or change of name) by logging on to the LLP portal along with the fee prescribed and attaching the digital signature of the designated partner proposing to incorporate an LLP.

When is audit required for a limited liability partnership?

LLPs that exceed the turnover of forty lakh rupees, or if the contribution is higher than twenty-five lakh rupees in a financial year, are required to get their accounts audited.

What is the advantage of LLP over partnership firms for tax purposes?

Tax rates and treatment for both partnership and LLP are the same as per Income Tax Law. However in the case of a partnership firm, if you want to book profit less than 6%/8% of turnover in case of a normal business or less than 50 % in case of professional or technical service, then Tax Audit is mandatory under Income Tax Act

What is mandatory compliance for a limited liability partnership?

An LLP is required to comply with the following things irrespective of turnover: (I) Maintain Books of Accounts. (II) File Income Tax Return. (III) File Annual ROC form

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