Limited Liability Partnership(LLP)

What Is A Limited Liability Partnership?

 

 

LLP Registration in India has become an alternative form of business that provides the advantages of a Company and the flexibility of a Partnership firm into a single organization. LLP stands for Limited Liability partnership. As the name suggests partners have limited liability in the company which means that personal assets of the partners are not used for paying off the debts of the company. It helps owners also to limit their liabilities. This is the biggest advantage of the Limited Liability Partnership over a traditional Partnership Firm.

 

Nowadays it has become very popular form of business as many entrepreneurs are opting this. This unique hybrid is suitable for setting small, medium-sized businesses. It is very easy to manage and incorporate a Limited Liability Partnership in India. . The LLP agreement states the rights and the duties of the Partners. In an LLP one partner is not responsible for the misconduct and negligence of the other partner. The partners are responsible for the compliances and all the provisions that are specified in the LLP agreement. All limited liability partnership is governed under the limited liability partnership act of 2008. However in India LLP was introduced in April 2009.

 

Choose Your Package

Silver

₹ 5899/-

  • 2 Digital Signature Certificates
  • 2 Director Identification Numbers
  • 1 Name Approval Application
  • LLP Incorporation Certificate
  • LLP Agreement
  • PAN
  • TAN

Gold

₹ 15999/-

  • 2 Digital Signature Certificates
  • 2 Director Identification Numbers
  • 1 Name Approval Application
  • LLP Incorporation Certificate
  • LLP Agreement
  • PAN
  • TAN
  • SSI/MSME Registration
  • GST Registration
  • 1 Year GST Return Filing

Platinum

₹ 24999/-

  • 2 Digital Signature Certificates
  • 2 Director Identification Numbers
  • 1 Name Approval Application
  • LLP Incorporation Certificate
  • LLP Agreement
  • PAN
  • TAN
  • SSI/MSME Registration
  • GST Registration
  • 1 Year GST Return Filing
  • 1st Income Tax filing for non audit assessee
  • 1st Annual Filing up to turnover of Rs. 40 Lakhs
  • Form 8 Filing
  • Form 11 Filing
  • Accounting Book Keeping up to 100 Transactions
  • 2 DIR - 3 KYC

 

Documents Required To Register A Limited Liability Partnership

 

 

1. Passport size Photograph of all the Directors and Shareholders

 

2. PAN and Aadhar card of all the Directors and Shareholders

 

3. ID proof of all the Directors and Shareholders (Driving License/Voter ID/Passport)

 

4. Address Proof of all the Directors and Shareholders (Bank statement/Electricity Bill/Telephone Bill) not older than 1.5 months having name of the respective Director and Shareholder.

 

5. Registered Office Address Proof (Electricity Bill/Water Bill/Gas Bill or any other utility bill) not older than 1.5 months

 

Specific Requirements:

 

1. A Limited Liability Partnership must have a registered office in India. Documents like bank statement or electricity bill should be recent.

 

2. A utility bill, rent agreement or sale deed and an  NOC (Non-Objection Certificate) from the landlord with his / her consent to use the office as a registered office of a company must be submitted as well.

 

 

Steps To Register Your Limited Liability Partnership

 

 

1. Experienced and dedicated personnel assigned for engagement.

 

2. Collection of required documents along with a simple checklist.

 

3. Verification of the Documents as required for Incorporation by our incorporation experts.

 

4. Process of application of Digital Signature Certificate.

 

5. Name approval application submitted to MCA.

 

6. Drafting of the essential documents by our Assigned Personnel based on the MCA approved name.

 

7. Signing of documents by the all partners

 

8. Submission of documents along with Incorporation Form to MCA for approval.

 

9. Once MCA approves, it will grant Certificate of Incorporation and the LLP will be Registered.

 

10. Drafting of LLP Agreement and sent to be signed by all the partners on a stamp paper .The Signed deed is then verified by the engagement manager and uploaded on the MCA Portal within 30 days of incorporation.

 

11. Obtaining PAN and TAN.

 

 

Advantages Of Limited Liability Partnership

 

 

Low registration cost 

 

The cost of registering an LLP in India is comparatively lower than that of incorporating a public limited company or a private limited company.

 

No Minimal Capital

 

As an LLP can be formed with the least possible capital, there is no minimum capital requirement in the incorporation of an LLP.

 

LLP Audit

 

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

 

Easy Transferability

 

Interest in Limited Liability Partnership can easily be transferred by introducing new Designated Partner in LLP and it will not affect its existence As it is a separate legal entity.

 

Separate Legal Existence 

 

LLP enjoys the benefit of Separate Legal Identity in the eyes of law which clearly states that assets and liabilities of the business are not the assets and liabilities of the Partners.

 

LLP Tax Benefits

 

It is also exempted from various taxes such as dividend distribution tax and minimum alternative tax. The rate of tax on LLP is less than as compared to the company.

 

Perpetual succession 

 

According to the provisions of the Act, the LLP will not be winded up in case of death, retirement or insolvency of a partner. The life of the LLP is not affected by the same

 

Lower Compliance Requirements 

 

According to the provisions of the Act, regulatory compliance is very less in case of LLP as compared to company form of entity

 

 

Compliances Required By Limited Liability Partnership

 

Accounting

 

Every LLP shall maintain and keep the accounting records which sufficient to show and explain the transaction of an LLP and which discloses with reasonable accuracy the financial position of the LLP. The books of account are required to be kept and maintained at the registered office of the LLP for the period of 8 years.

 

Income Tax Filing

 

Every Limited Liability Partnership has to file the Income Tax Returns every year, irrespective of its transactions. It must be filed by LLP on or before 31st July (if not covered under audit) or 30th September (if covered under audit). Income tax returns for Limited Liability Partnership have to be filed under ITR 5.

 

ROC Annual Filing

 

LLPs are required to file ROC Form 8 before 30th October every year. Form 8 contains details of the Statement of Accounts and solvency. Also, LLPs are required to file ROC Form 11 before 30th May every year. Form 11 contains details of all the Designated Partners like whether there are any changes in the management of the LLP.

 

Audit under IT ACT 

 

Every Limited Liability Partnership whose turnover exceeds INR 2 Cr. In case of a business or INR 50 Lakh in case of a profession, is required to get its books of accounts tax audited under section 44AB of the Income-tax Act. Such tax audit under section 44AB will have to be completed and filed by 30th September.

 

Form 3 CEB for LLP 

 

For LLPs which have entered into any international transactions with associated enterprises or have undertaken specified Domestic Transactions, need to file Form 3CEB. This form should be certified by a practicing Chartered Accountant. Limited Liability Partnerships which are required to file this Form can do their tax filing by the 30th of November.

 

MAT Audit for LLPs 

 

It is mandatory for the LLPs to get their accounts audited under MAT i.e. Minimum Alternate Tax. A report in form 29b is to be issued by a Practicing Chartered Accountant which certifies that MAT has been computed according to Income Tax Act, 1961. The book profit of a company is the accounting profit arrived at after making the specified additions and deductions.

 

DIR -3 KYC  

 

The DIN KYC procedure must be completed each year for the directors of the LLP.

 

 

Starting Your Own Private Limited Company With UpriseLegal

 

 

With our experienced and skilled personnel, We at UpriseLegal makes process of registering your Limited Liability Partnership very smooth and helps you in each and every step of company formation. We follow law to the core and uses our knowledge to avoid any hassles in your business so that you can rise and grow! You may get in touch with our compliance manager on 9173512402 or email us at [email protected] for free consultation.