Limited Liability Partnership in Madurai

Simplified LLP Registration Guide

What is LLP Registration?

A Limited Liability Partnership (LLP) shields partners from personal liability for the partnership's debts, blending features of companies and partnerships. Here's a simplified guide:

Features of LLP:

1. Partners aren't personally liable for one partner's actions.
2. Limited liability up to their investment.
3. Governed by contracts, not company laws.
4. Separate legal entity with perpetual succession.
5. Lower compliance compared to private limited companies.
6. Requires two designated partners for legal compliance.

Benefits of LLP Registration:

1. Organized partnership structure.
2. No minimum capital requirement.
3. No limit on partners.
4. Flexible contractual framework.
5. Easy to form, run, and dissolve.
6. More flexibility in procedural and legal requirements.
7. Limited liability protection for partners.

Disadvantages of LLP:

1. Higher income tax rate (30%).
2. Regular compliances, penalties for defaults.
3. No equity investment option.
4. Mandatory financial disclosure to the public.
5. Transfer of ownership can be challenging.

LLP Registration Requirements:

1. Minimum two partners, no maximum limit.
2. Partners must be at least 18 years old.
3. Minimum two designated partners, one residing in India.
4. Nominee required if a body corporate is a partner.
5. Each partner contributes to the LLP's capital.

Documents Required for LLP Registration:

For partners:

• PAN card or any ID proof.
• Address proof (Passport/Voter’s ID/Driving license/Aadhar card).
• Residence proof (Utility bills/bank statement).
• Passport size photograph.
• For NRIs or foreign nationals: Passport.

For LLP:

• Proof of registered office address (Utility bills not older than 2 months).
• Rent agreement and NOC from owner (for rented space).
• LLP agreement.

LLP Registration Process:

1. Getting DPIN:

   • Designated Partner Identification Number for all partners.

2. Getting DSC:

   • Digital Signature Certificate for all designated partners.

3. Apply for Name Reservation:

   • Reserve a name for the LLP (valid for 3 months).

4. Apply for Incorporation:

   • File incorporation via FiLLiP with required docs and fees.

5. File LLP Agreement:

   • File LLP agreement using Form 3 within 30 days of incorporation.

LLP Registration Fees:

• DSC for 2 partners: ?1500-2000.
• DIN for 2 partners: ?1000.
• Name reservation fees: ?200.
• Government fee (varies based on contributions).

Compliance for LLP:

• Financial year ending on 31st March.
• File Annual Return (Form 11) within 60 days of financial year-end.
• File Statement of Accounts & Solvency (Form 8) within 30 days of 6 months from financial year-end.
• Maintain books of accounts, file income tax returns.

Checklist for LLP Registration:

• At least 2 partners (can be designated).
• DSC and DPIN for designated partners.
• Proposed LLP names.
• Capital details of each partner.
• Proof of registered office.
• LLP agreement.

Naming Considerations:

• Ends with "Limited Liability Partnership" or "LLP."
• Unique, not in use by another LLP.
• Adheres to regulations (avoid prohibited words, offensive terms, registered trademarks).

FAQs on LLP Registration

Q: Who qualifies as partners of an LLP?
A: Partners in an LLP can be individuals, private limited companies, or other LLPs, including foreign nationals and body corporates. Individuals must be contractually qualified, and corporate bodies need to assign a nominee.

Q: Does LLP need MoA and AoA?
A: No, LLPs skip the Memorandum of Association (MoA) and Articles of Association (AoA). Instead, they rely on the LLP agreement as their guiding document.

Q: Can a corporate entity be a designated partner in an LLP?
A: Yes, corporate entities can act as designated partners in an LLP, appointing a nominee to represent them.

Q: Can a partnership be transformed into an LLP?
A: Certainly, a partnership can smoothly transition into an LLP. The Taxless.in can facilitate this conversion.

Q: Can a company be converted to an LLP?
A: Yes, a private or unlisted public company can be converted into an LLP with the assistance of the Taxless.in. However, listed companies are not eligible for this conversion.

Q: How do I reserve a name for my LLP?
A: Log in to the MCA portal, submit LLP Form No.1 with the prescribed fee, and attach the Digital Signature Certificate (DSC) of the designated partner.

Q: Is filing the LLP agreement mandatory?
A: Yes, filing the LLP agreement is a mandatory post-registration requirement under the LLP Act.

Q: How can I check the status of my LLP application?
A: After submission, you'll receive a Service Request Number (SRN). Use this number to track your application status on the portal. Regular checks are crucial, as the status may indicate actions needed, such as "Waiting for user clarification" or "Required resubmission."

Q: What is the typical timeline for LLP registration?
A: LLP registration can be completed in about 10 days from obtaining the Digital Signature Certificate (DSC). However, the timeline is subject to your prompt actions and departmental approval.