Limited Liability Partnership (LLP) Registration
At Legal Kamkaj, we make Limited Liability Partnership (LLP) Registration in India quick and easy for business owners. From preparing the documents to completing the registration, we guide you step by step to ensure everything is done smoothly. We assist you in obtaining the Certificate of Incorporation, drafting a personalized LLP Agreement, and handling key post-registration tasks like applying for PAN, TAN, and GST numbers.
Our Legal Kamkaj team also manages the filing of annual forms like Form 8 and Form 11 to keep your Limited Liability Partnership (LLP) compliant and avoid penalties. Additionally, we help with opening a business bank account, securing a trademark for your brand, and offering legal support to help your business grow effortlessly.
Whether you’re starting your first Limited Liability Partnership (LLP) or expanding an existing business, Legal Kamkaj provides a seamless registration process and post-registration compliance services. Choose us for efficient, hassle-free LLP Registration solutions.
Register your Limited Liability Partnership (LLP) Registration today
What Is Limited Liability Partnership?
A Limited Liability Partnership (LLP) is a Modern Business Type that Combines the Flexibility of a Partnership with the Protection of a Company. In An LLP Partners have Limited Liability, which means their Personal Assets are Safe from the Business’s Debts, just like Shareholders in a Company. The Structure also Allows Partners to Decide How to Share the Profits, Based on their Agreement. An LLP is Considered a Separate Legal Entity, which Means it can own Property, Sign Contracts, and Take Legal Actions on its own, without Involving the Partners Directly.
LLPs are Popular among entrepreneurs, professionals, and small businesses because they offer asset Protection while Having Fewer Rules to Follow compared to traditional companies. The LLP registration Process is simple, with less Paperwork Needed than Setting up a Private Limited Company. It also comes with Tax Advantages, such as no Dividend Distribution Tax, Making it a Great Option for Business Owners.
The LLP Act, introduced in India in 2008, Provides a Strong Foundation for Businesses, Allowing Smooth Operations while Protecting the Partners. With Fewer Legal Requirements and Easy Setup, LLPs are a Good Choice for Startups, Consultants, and Businesses Seeking Affordable Solutions for Long-term Growth and Legal Protection.
Benefits of LLP Registration
Limited Liability Protection
Partners are Protected from Business Debts, only Responsible for what they Invest.
Tax Benefits
No Dividend Distribution Tax and Other Tax Advantages.
Attractive for Professionals
LLPs are ideal for Consultants, Lawyers, and Accountants, as they can Provide Services while Limiting Personal Liability.
Separate Legal Entity
The LLP Operates on its own, Independent from the partners.
No Minimum Capital Requirement
You can Start an LLP with Any Amount of Money, giving you More Freedom to Begin.
Business Continuity
The LLP keeps Running Smoothly even if a Partner Leaves or Joins.
Operational Flexibility
Running an LLP Requires Fewer Rules to Follow, so it’s Easier to Manage than a Private Company.
Easy Partner Changes
It’s Simple to Transfer Ownership or Add New Partners Without Disrupting Business.
Simple Registration
Fast and Easy Registration Process.
Documents Required for LLP Registration
For Designated Partners:
- PAN Card and Aadhaar Card
- Passport-sized Photographs
- Mobile Number & Email Id
- Latest Bank Statement or Passbook (Not older than Two Months)
For Registered Office:
- Office Address – Latest Utility bills like Telephone/Gas/Electricity bill (Not older than Two Months)
- Rent agreement (If the Premises are Rented)
Limited Liability Partnership (LLP) Registration – (All-Inclusive Package)
Start Your LLP Easily with Our Affordable Package. You’ll Get Everything Needed to Set up Your Limited Liability Partnership:
- LLP Name Reservation
- LLP Agreement Drafting
- FiLLiP & Form 3 Filing
- DSC for Two Partners
- DIN of Two Directors
- Certificate of Incorporation (CoI)
- LLP PAN & TAN Registration
- PF & ESIC Registration (if Applicable)
- Government Fees & Stamp Duty
- LLP Business Bank Account Opening
LLP Registration Process - A Step-by-Step Guide
Step 1: Reserve LLP Name
- Choose a Unique Name for the LLP.
- Submit Form RUN-LLP to Check and Reserve the Name.
Step 2: Get Digital Signature Certificate (DSC)
- Partners must Acquire a DSC to Sign Electronic Documents.
Step 3: Get Director Identification Number (DIN)
- Designated partners must have a DIN. Apply through the Ministry of Corporate Affairs (MCA) Portal.
Step 4: Draft the LLP Agreement
- Prepare the LLP Agreement, Detailing the Roles, Responsibilities, and Profit-sharing between Partners.
- The Agreement must be Filed with Form 3 During Registration.
Step 5: File Incorporation Application (Form FiLLiP)
- Submit Form FiLLiP (Form for LLP Registration) with All Required Partners Details, Business Activities, and Registered office to the Registrar of Companies (RoC).
Step 6: File Form 3 (Statement of Partners)
- Submit Form 3 within 30 days of LLP Incorporation, including Details of the Partners and Designated Partners.
Step 7: Get Certificate of Incorporation (CoI)
- After verification, the MCA will issue the Certificate of Incorporation (CoI), confirming the LLP’s registration.
Step 8: Apply for PAN & TAN
- Apply for PAN and TAN for Tax-Related Purposes.
Step 9: Register for GST (if Applicable)
- If Your LLP’s Turnover Exceeds the Limit or Deals with Inter-state Sales, Apply for GST Registration.
Step 10: Post-Registration Compliance
- File Annual Returns (Form 8 and Form 11).
- Maintain Records and comply with All Ongoing Regulations.
LLP Agreement Drafting and Filing Procedure
Drafting the LLP Agreement – The Agreement is Customized to fit the Specific Needs of the LLP and Must Comply with the Provisions of the Limited Liability Partnership Act, 2008.
The LLP Agreement must include the following Key Elements:
- Name and Address of the LLP :
- The full name of the LLP and its registered office address.
- The full name of the LLP and its registered office address.
- Partners and Designated Partners :
- Names, addresses, and designations (partner or designated partner) of all the partners involved in the LLP.
- Designated partners are responsible for compliance with legal obligations, and their names must be mentioned clearly.
- Nature of Business :
- A description of the business activities the LLP will be engaged in. This can include both primary and secondary activities.
- A description of the business activities the LLP will be engaged in. This can include both primary and secondary activities.
- Capital Contribution :
- The total capital contributed by each partner.
- You should mention whether the contribution is in the form of cash, property, or services.
- Profit Sharing Ratio :
- A clear profit-sharing ratio between the partners. It may not always be equal and can vary based on contributions or agreements.
- A clear profit-sharing ratio between the partners. It may not always be equal and can vary based on contributions or agreements.
- Rights and Duties of Partners :
- Detailed roles and responsibilities of the partners (e.g., who is responsible for managing day-to-day operations, handling accounts, etc.).
- Detailed roles and responsibilities of the partners (e.g., who is responsible for managing day-to-day operations, handling accounts, etc.).
- Duration of the LLP :
- If the LLP is formed for a specific period, state the duration. Otherwise, mention that the LLP is formed indefinitely.
- If the LLP is formed for a specific period, state the duration. Otherwise, mention that the LLP is formed indefinitely.
- Dispute Resolution Mechanism :
- A provision for resolving disputes among the partners, such as through arbitration or mediation.
- A provision for resolving disputes among the partners, such as through arbitration or mediation.
- Withdrawal or Exit of Partners :
- Procedure for the withdrawal or removal of partners from the LLP.
- How the assets and liabilities will be handled if a partner exits.
- Indemnity :
- Protection for partners against legal liability arising from business operations.
- Protection for partners against legal liability arising from business operations.
- Miscellaneous Provisions :
- Provisions like non-compete clauses, confidentiality agreements, or how decisions will be made in case of a tie between partners.
- Provisions like non-compete clauses, confidentiality agreements, or how decisions will be made in case of a tie between partners.
Filing the LLP Agreement with Form 3
- After Drafting the Agreement, it must be Submitted to the Ministry of Corporate Affairs (MCA) as Part of the Registration Process.
- This is done by Filing Form 3 (Statement of LLP Agreement) with the MCA Portal within 30 days From the Date of Incorporation.
- The Agreement is Required to be Signed Digitally by the Designated Partners and Uploaded with the Necessary Details about the Partnership.
Compliance Requirements for Limited Liability Partnership (LLP)
Annual Filing Requirements – LLPs in India are Required to Adhere to Several Compliance Requirements to Ensure their Legal Standing and Smooth Operation. These Include Filing Annual Returns, Maintaining Proper Records, and Ensuring that the LLP Meets Regulatory and Tax Obligations.
- Form 8: Statement of Accounts & Solvency
- LLPs must file Form 8 Every Year, Providing a Details of the LLP’s Financial Statements, Profit and Loss Account, and Balance Sheet, along with a Declaration of Solvency.
- Form 8 must be Filed within 30 Days from the End of the LLP’s Financial Year (Typically by October 30th).
- Form 11: Annual Return
- Form 11 is filed to Provide Details about the Partners, Designated Partners, and the Business Activities of the LLP.
- Form 11 must be Filed within 60 Days from the End of the Financial Year (Usually by May 30th).
- Income Tax Returns
- Filing Income Tax Returns (ITR) is Mandatory for All LLPs to Report their Income and Tax Liabilities.
- LLPs Must File their Tax returns by September 30th of the Assessment Year (For LLP’s Not Requiring an Audit).
- Other Compliance Filings (If Applicable)
- GST Returns: LLP’s that are GST-Registered Must File GST Returns Based on their Business Turnover (Every Monthly/Quarterly).
- Tax Deducted at Source (TDS) Compliance: If the LLP has Deducted TDS (Tax Deducted at Source) on Any Payments, it must File TDS Returns (Usually by 7th Date of the Quarterly Month).
- PF and ESIC Compliance: If the LLP has Employees, it must comply with PF and ESIC Regulations (Every Monthly/Quarterly).
Effect of Registration (Section 14)
Upon receiving the certificate of registration from the Registrar of Companies, the LLP becomes a body corporate. Consequently, it establishes itself as a separate legal entity distinct from its individual members.
As a result, the LLP is entitled to exercise the following rights:
- Legal Representation:
- First, the LLP has the authority to initiate legal actions and participate in legal proceedings. It can act as both a plaintiff (bringing lawsuits) and as a defendant (being sued) in its own name, ensuring it can protect its interests effectively.
- Property Rights:
- Furthermore, the LLP can acquire, own, manage, or dispose of various types of property. This includes both tangible and intangible assets, as well as movable and immovable property. Such rights empower the LLP to manage its resources flexibly.
- Common Seal (Optional):
- Additionally, the LLP may choose to have a common seal. However, it is important to note that this is not a compulsory requirement for its operations. Thus, the LLP retains the flexibility to operate without one if desired.
- Legal Capacity:
- Moreover, the LLP is authorized to perform any lawful activities. It can face any legal consequences permitted for other corporate bodies. This capacity enables the LLP to engage in a wide range of business operations while ensuring compliance with relevant laws.
- In summary, these rights empower the LLP to operate effectively in the business environment. They provide the necessary legal framework for its operations and enhance its credibility as a distinct entity. Thus, the LLP can pursue growth and sustainability confidently.
FAQ's on Limited Liability Partnership (LLP) Registration
The LLP Agreement is a legal document that defines the rights, duties, and responsibilities of partners in a Limited Liability Partnership (LLP). It governs internal operations, profit distribution, decision-making, and resolution of disputes within the LLP.
The income tax rate for an LLP is 30% of the total income. Additionally, a surcharge and health and education cess may apply based on the LLP’s annual income and current tax regulations.
LLP compliance under the Companies Act 2013 involves meeting statutory obligations, including filing annual returns, maintaining accurate books of accounts, conducting audits, adhering to tax regulations, and fulfilling other legal requirements.
A partner can be removed from an LLP by following the procedures outlined in the LLP Agreement. This typically requires obtaining consent from the other partners, executing necessary documentation, amending the LLP Agreement, and notifying the relevant authorities.
LLPs are registered online with the Registrar of Companies (ROC) in the respective state. The process is streamlined through platforms like Legal Kamkaj and involves submitting the required documents, including LLP incorporation forms.