How To Register An LLP Company Online ?
You can operate your business under a Limited Liability Partnership in India online. We hold immense knowledge and expertise in LLP registration and help you in the following ways
LLP Registration Online – An Overview
Limited Liability Partnership (LLP) in India took shape after January 2009, making it an instant success with startups and professional services. Limited Liability Partnership Registration, governed by the Limited Liability Partnership Act, 2008, combines the benefits of a partnership with that of a limited liability company. LLP was introduced to provide a form of business that is easy to maintain and to help owners by providing them with limited liability.
For a Limited Liability Partnership registration in India, Buiznest is one of the most affordable and steadfast service providers.
Why register an LLP company? - Benefits
After deciding on your business model, it’s important to choose between the Private limited company registration and LLP, by understanding their differences and advantages they provide, so as to choose what’s best for your business model.
The most vital reason for registering as LLP is the limited liability. The members of the firm are only liable for a small amount of debt incurred by it. This is entirely different from proprietorship and partnership where the personal assets of directors and partners are not protected if the business becomes bankrupt.
Seperate Legal Entity:
- LLP is a separate legal entity from the partners. Each partner can sue the other in case a situation arises.
- It has an uninterrupted existence that follows perpetual succession, i.e., the partners might leave, but the business remains. A term of dissolution has to be mutually agreed on for the firm to dissolve.
Transferring the ownership of LLP is also simple. A person can quickly be inducted in as a designated partner and the ownership switches to them.
Suitable For Small Business:
- LLPs having a capital amount less than 25 lakhs and turnover below 40 lakhs per year do not require any formal audits. It makes registering as LLP beneficial for small businesses and startups.
- An LLP can own or acquire property because it is recognized as a juristic person. Partners of LLP cannot claim the property as theirs.
No Owner /Manager Distinction:
An LLP has partners, who own and manage the business. This is different from a private limited company, whose directors may be different from shareholders. For this reason, VCs do not invest in the LLP structure.
Quick and easy steps to register LLP in India - A detailed process
At Buiznest, we make the process of LLP registration seamless and hassle-free.
- Arrange basic documents of Partners
- Fill in an online form with accurate information
- Apply for Digital Signature and DIN of Partners
- Prepare all legal documents
- Apply to name availability of the proposed LLP
- Verification of all documents and forms by the respective Government dept and authorities
- File Incorporation Docs with ROC
- Get LLP Incorporation Certificate
- Drafting of LLP Agreement
- Filing of LLP Agreement
Step 1: Obtaining DSC And DIN
The first step is to obtain DSC of the desired partners of the Limited Liability Partnership. The reason for this is that all the forms need to be submitted online and require the directors’ digital signatures.
The law also requires that all directors file for a DIN number. The application has to be made in Form DIR- 3.
Step 2: Application For Name Approval
This process involves registering the LLP. Before you do this, you would need to see if the name is already taken. You can check on the free search facility on the MCA portal. The registrar only approves LLP names that are not taken before.
The approval of the name will be made by the Registrar only if the Central Government does not deem it undesirable. The name should also not hold any resemblance to any of the existing partnership firms, LLPs, trademarks, or body corporates.
Step 3: LLP Agreement
LLP agreement is very crucial in a limited liability partnership as it determines the mutual rights and duties amongst the partners, and between the LLP and the partners. The partners enter into the LLP agreement upon the LLP registration by filing form 3 online on the MCA portal. This procedure has to be done within 30 days of the date of incorporation.
Step 4: LLP Incorporation Certificate
Once the registrar approves your MOA and AOA, you’re steps closer to getting your LLP registered. The next step is to get the LLP Incorporation Certificate. You can do by submitting all documents to the registrar. The time frame is between 2- 12 days. Once you get your LLP Incorporation Certificate, you’re ready to go.
Step 5: Apply For PAN & TAN & Bank Account
As soon as you get the incorporation certificate, you need to apply for your company PAN & TAN with the NSDL. The cost for this procedure is less than Rs.200 and it takes around three weeks to get done.
Documents required for LLP registration in India
The method of LLP registration in India does not require much legwork when it comes to 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 or Mobile Bill/Electricity or Gas Bill
- Scanned passport-sized photograph Specimen signature (blank document with signature [partners only])
- Note: Any one of the partners must self-attest the first three documents. In the case of foreign nationals and NRIs, all the documents must be notarized (if currently in India or a non-Commonwealth country) or apostilled (if in a Commonwealth country).
For The Registered Office
- Scanned copy of latest bank statement/telephone or mobile bill/electricity or gas Bill
- Scanned copy of Notarised 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)
- Note: Your registered office need not be a commercial space; it can be your residence, too.
Check if your firm qualifies for LLP in India
Starting a business requires certain specific requirements to be fulfilled to be eligible for registering as an LLP.
The normal partnership structure and LLP share the same attributes when it comes to internal management, profit distribution and tax liabilities. But, it offers the partners less financial liability (limited liability).
Any business who has:
- At least two partners are required to form an LLP. There is no limit to the maximum number of partners
- The nomination of a natural person, if a body corporate is a Partner
- No shared capital requirement, though each partner must have an agreed contribution towards it.
- Minimum capital contribution: There is no minimum capital requirement for an LLP (or a company, for that matter). The LLP should have an authorized capital of at least Rs. 1 lakh.
- At least one Designated Partner as an Indian resident
- DPIN for all Partners
- DSC for all the Designated Partners
- Address proof for the office of LLP. The registered office of an LLP does not have to be a commercial space. Even a rented home can be the registered office, so long as an NoC is obtained from the landlord.
- With regard to the changes in the FDI regulations dated November 10, 2015, foreign investors are now permitted to have a 100% FDI in the automatic route LLP. The 100% FDI in the LLP is granted to foreign companies who operate in activities or sectors where 100% FDI is considered permissible through the channels of the automatic route. Also, there should not be any performance prerequisites that are linked to FDI. A definite interpretation of the terms such as ‘ internal accruals’ and ‘ownership and control’ has been provided with reference to the LLP. Thus, Foreign investment is made smoother and quicker with FDI in LLP.
- The LLPs will also be permitted to opt for downstream investment in a different company or even choose LLP in those sectors which allow 100% FDI in accordance with the automatic route. This does not come up with any performance constraints that are FDI linked.
Factors to consider while selecting a name for your LLP in India
The Registrar of Companies (RoC) has issued naming guidelines for LLPs. It is essential that you follow the rules closely or your application may end up getting rejected, leading to a much longer process.
In AlphaBeta Internet Private Limited, AlphaBeta is the unique component. Now, once taken, the name will not be given to any other business in categories related to the Internet.
Abbreviations, adjectives and generic words are rejected. So XYZ would be rejected, as would Good Quality Biscuits. The words bank, exchange and stock exchange, unless approved by RBI or SEBI, would also be rejected.
No Common Trademark:
There should not be a registered trademark by the same name on the IP India website. If there is one, the name can only be approved if you are able to get a No-Objection Certificate from its owner authorising you to use it.
In Biocon Research Private Limited, the word ‘Research’ describes the business the company is into. You cannot have ‘Research’ in your name if you’re, say, in the logistics or restaurant business.
Check LLP Name Availability:
Naming an LLP is often a time-consuming process as the government has put together a complicated procedure with several rules. Furthermore, there are acceptable names for an India LLP, as per the Companies Act, 2013 and LLP Act, 2008. Lucky for you Buiznest has built an easy-to-use tool to ensure you’re not hassled just for finding a name.
Why Buiznest LLP Registration Package?
Buiznest is cognizant of the new process. For years, we have helped many entrepreneurs, financial advisories, ad agencies register their businesses as LLP India. From Chennai to Bangalore to Mumbai and more, our LLP services are comprehensive and reach every corner of the country.
With Buiznest, registering LLP is one of the easiest processes in India. We make the entire compliance procedure simple and give our best efforts to complete the process at the earliest time as possible. When you choose us to be your partner to register LLP, you get to avail a few undeniable benefits. The Ministry of Corporate Affairs comes up with updates to LLP process and Buiznest takes care of them for you.
- DSC for one director and DIN for up to three directors
- Drafting of MoA & AoA
- Registration fees and stamp duty
- Company Incorporation Certificate
We also provide assistance with:
- A first free consultation, followed by subsequent meetings to clear every concern you may face.
- Complete support on opening a Current Bank Account
- Comprehensive and on-time updates on ROC compliances.
- Online Accounting Software valid for one year.
- A Master file that contains all the documented needed to file the incorporation.
- A Dedicated service manager is present at all times.
- Being a seperate legal entity from the existing partnership firm, LLP will have its unique name pan card so it is required a new/separate GST Registration on the name of LLP
- You will also get Zero Balance Current Account – Powered by DBS Bank *
FAQs on LLP Registration
What is the eligibility of designated partners/partners in an LLP?
I am an NRI. Can I start an LLP business in India?
What are the rules of starting an LLP?
What is an LLP agreement?
What is the minimum number of partners required to start LLP?
What kind of start-ups commonly register LLPs?
Is it cheaper to run an LLP than a private limited company?
What are the key differences between an LLP and a Pvt. Limited company in India?
Before selecting a business structure entrepreneurs have to carefully understand the existing different entities and weigh the pros and cons of all the business types equally. However, the most common entities chosen are Limited Liability Partnerships (LLPs) and Private Limited Companies. The number of LLPs is growing ever since its introduction in 2008. Although both private limited companies and LLPs have more or less the same benefits and complications, there are some differences in terms of legal aspects, taxation, compliances, and so on. Get Legal Assistance Enter your Email Id* Mobile Number* Key Difference between LLP & Pvt Limited company in India Following are the differences between LLPs and private limited companies that can help entrepreneurs decide the most suitable one for their business. Popularity: Private limited companies are in existence for a long time and are quite popular among business owners. It has established processes and rules. LLPs are not as popular as Private limited companies but are comparatively easy to set up. Funding: Private limited companies have greater applicability. As private limited company distinguishes between shareholders and directors, the chances of funding are high. Also, the option of ESOPs or Employee Stock Options enhances employee retention. Formation And Registration Process: Both the entities are registered with the Ministry of Corporate Affairs (MCA) and receive an incorporation certificate post registration. The registration process is similar with the only difference being in the documents and forms filed.
Registration process of private limited companies: 1. Application for DSC (Digital Signature Certificate) and DIN (Director Identification Number)
2. for Directors
3. Application to check the availability of the proposed name
4. Filing of the EMoa and EAOA
5. Application for PAN and TAN
6. Incorporation certificate
Registration Process Of LLPs 1. Application for DSC (Digital Signature Certificate) and DIN (Director Identification Number) for Partners
2. Application to check the availability of the proposed name
3. Application for PAN and TAN
4. Incorporation certificate
5. Drafting of LLP agreement The duration of registration for both the companies take around 20 days
Cost And Maintenance: A new business wouldn’t be in a very strong financial position to spend and hence comparing the costs is an essential part. A minimum of Rs 15,000 is required to register a private limited company which includes documentation, taxes, agent fees, etc, an addition of Rs 15,000 to 20,000 per year to comply with all the MCA’s mandatory compliance requirements. Another recurring Rs 15,000 per year to fulfil all the auditing requirements. This sums up to Rs 40,000 to 45,000 per year. An LLP is much cheaper. The registration fee comes up to 11,000 and around Rs. 4,000 for MCA’s compliance. Moreover, auditing has to be conducted only when the annual turnover exceeds Rs. 40 lakh and the paid-up capital of over Rs. 25 lakh. This means that for the price of starting a private limited company you can start and maintain an LLP in its first year.
Penalties: some private limited companies do not care to comply with MCA regulations. which can lead to hefty fines of up to Rs. 1 lakh per year. With an LLP, given its low costs, it is very unlikely that companies would not comply. So LLP is a better choice to start a small business that does want to increase funding or offer ESOPs to employees.
Ownership With respect to ownership, private limited companies offer much more benefits as the ownership is based on shareholding. There can be a maximum of 200 shareholders in a private limited company abd they do not directly get involved with the management and are disticnt. In LLP companies, the owners and management are the same. As both handle the business affairs and take the management powers equally.
Compliance: Although the compliance requirements are almost similar for both the entities, LLP has its own compliance perks. There is no yearly audit for LLPs if the annual turnover is below 40 lakhs and the capital investment is below Rs 25 lakhs. Whereas Private limited companies have to go for a mandatory yearly audit. If you are still confused, take time to dwell on this question and do in-depth research, approach a professional legal service provider because once you decide to register an LLP, there are high chances to get several licenses and approvals in its name (profession tax or shops and establishments registration, for example). If at any point, you need to switch from an LLP to a private limited company, considerable effort would be required.
What is an LLP on the whole?
How does LLP registrations work for foreign directors?
60 Established Vendors
Buiznest has successfully completed 600+ registrations in the past year alone. We have partnered with some of the top experts in business across India to get your registration across to you on time.
9.1 Customer Score
We make your interaction with the government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.
200+ Strong Team
Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we’ll try to ensure that your doubts are cleared before they even arise.
Designing is not intended for talented people. It’s for everyone. What you need to do is just to open up your mind to all possibilities.
Never stop learning. Consider yourself as a life-long learner and try your best to learn as much as you can, you definitely will succeed.
You can’t succeed if you just do what others do and follow the well-worn path. You need to create a new and original path for yourself.
“Theme is @intuitive to use. Even for a WordPress beginner like me, Brook offers all the functions and features with simple instructions”
“I’m running a multi-area website so this multipurpose theme is just what I need. @Brook really has great concepts for creative agencies like ours.”
“This is just the most powerful theme I’ve ever met. Love to talk with their staff about how to explore all the capabilities of the @Brook theme. ”
“ThemeMove’s support team was very @professional. They can help me with fast and accurate solutions to all kinds of issues. Five stars for them.”
“The theme navigation is smooth and clean. Thanks to @Brook theme, my blogs now attracts thousands of audiences on a daily basis.”
“Found myself lucky for purchasing this theme! The developers of @Brook theme offer me the best customer service for my website. Love it!”