INCORPORATION OF LIMITED LIABILITY PARTNERSHIP (LLP)

  • LLP is a combination of a Company and a Partnership firm.
  • Best suited for consultancy businesses
  • Online Registration Process

Process of Incorporation of a LLP:

enterprise

Decide the name of the LLP

Decide a unique brand name of your LLP. Two names can be applied in the order of  preference. Please provide us with -5-7 unique names, our expert team will analyse and guide you about the availability of the name.

office-building

Apply the name of the LLP

Once the name is finalized our team will make application for name 

web

Apply for Digital Signatures

Application of Digital signatures of all the partners of LLP.

contract

Registration of Digital Signatures on MCA website

Before processing for the incorporation of the LLP, the DSC of all the Partners are required to be registered on the MCA portal. 

registration

Application for Incorporation of LLP

Once the name is approved, our team will prepare the documents required for the incorporation of the LLP and make an application for the same. 

test

Certificate of Incorporation of the LLP

After the application is done, the documents and application are verified by the Registrar of Companies and a Certificate of Incorporation is issued.

certificate

Filing of Initial LLP Agreement

After incorporation of LLP, the partners shall execute an initial LLP Agreement mentioning the mutual rights and liabilities of the partners. Such agreement shall be filed within 30 days of the incorporation.

CHECKLIST FOR REGISTRATION OF LLP

Basic documents required for registration

For LLP:

  • Registered address proof -Electricity Bill/ Telephone Bill/ Mobile Bill/ Gas Bill (any one)
  • No Objection Certificate for use of office address

For Directors and subscribers:

  • Self-attested PAN Card and Aadhar Card Copy 
  • Self-attested Residence Proof: Electricity Bill/Bank Statement/Mobile Bill (Any one)

Basic Information required for registration

For Company:

  • Proposed Name of Company 
  • Nature of business
  • Initial Capital
  • Contact No. and Email Id

For Directors and subscribers:

  • Name of Director/ Shareholder
  • Mobile No.
  • Email Id
  • Place of Birth
  • Educational Qualification
  • Current Occupation

FREQUENTLY ASKED QUESTIONS:

An LLP is a combination of traditional partnership firm and a company. Some of its features are similar to a partnership firm and some with a company.

It enjoys the status of a separate legal entity different from its owners. The liability of the owners is limited as against the traditional partnership firm where liability of the individual partners are unlimited.

No partner is liable on account of unauthorized actions of other partners, thus individual partners are prevented from joint liability created by another partner’s misconduct.

Annually, two returns are required to be filed by every LLP. Form 8 for statement of accounts and solvency and Form 11 for annual return are mandatory returns of the LLP.

Yes. An existing firm or company can be converted into LLP. 

There are a few similarities as well as a few differences between both types of business organisations i.e. the Private Limited Company and Limited Liability Partnership.

Both enjoy a feature of separate legal entity, the members have limited liability and the registration process for both is same. Further refer to the table below for analysis among the both organisations.

COMPARATIVE ANALYSIS OF LLP AND COMPANY
PARTICULARS LLP COMPANY
Members Minimum 2 Designated Partner Minimum 2 Member, 2 Director, Maximum 200 Members
Liability Limited, Except in case of Fraud and wrongful Act Limited Liability
Forms to be filed Regular-E-form-8 & Eform-11 Form AOC-4, Form MGT-7, ADT-1, Form DPT-3, Form MGT-14, Form DIR-12 and many other forms as per the requirement.
Requirement as to maintenance of Statutory Records No such Requirement. It is must to maintain statutory records as per Companies Act-2013.
Audit of Accounts Require only if Turnover above 40 lacs or Contribution more than 25 lacs. Audit is Compulsory.
Management through LLP agreement. Memorandum of Association and Article of Association of company.
Convening of Meetings No such requirement Required to hold Meetings as per Section- 173.
Loans & borrowings As per LLP Agreement. No other requirements. There is Cap for Loans and Borrowings as per section 179 & 180, Require to hold Board Meeting and file form with ROC
Deposits No such condition. Companies have to comply with the deposit rules. This compliance is tedious and restrictive if a company wants additional funds.
Related Party Transactions No Restrictions Transaction to be at arm’s length price only and as per provisions of Secton-188 of Companies Act-2013.
  • The most important step after LLP incorporation is to prepare and execute an LLP agreement and to file the same with ROC. This is a mandatory requirement.

  • Secondly, LLP can make an application for GST, Open current account of the company, Obtain MSME registration and apply for Trademark Registration. 

Additional fees are payable for delay in filing of forms. The additional fees payable depend on the capital contribution and the number of delays in filing of forms.

Any individual/Company/LLP can become partner of the LLP including foreigners/NRI. However, the individual must 18+ above in terms of age and should have a valid PAN card.

Only an individual or body corporate may be a partner in a  LLP. As HUF is not a body corporate, HUF cannot become partner in LLP.

LLP is a legal entity separate from its partners and the liability of the partners is limited. Any debts and obligations of the LLP will be borne by the assets of the LLP and not the partners of the LLP. In the case of a conventional partnership, the partners are jointly and severally liable for each debt and obligation of the partnership firm.

A Financial year in relation to the LLP, means the period from the 1st day of April of a year to the 31st day of March of the following year.

In the case of a limited liability partnership incorporated after the 30th day of September of a year, the financial year may end on the 31st day of March of the year next following that year.

Yes. A body corporate can be a partner to a limited liability partnership.

a “body corporate” includes a company incorporated in and outside India, an LLP incorporated in and outside India.

No. A co-operative society is not a body corporate thus it cannot become a partner in LLP

LLP cannot use the word ‘National’ unless it is a government company and the Central / State Government(s) has a stake in it.

The word ‘Bank’ can be used if the promoter of the LLP produces ‘No Objection Certificate’ from the RBI in this regard.

The word  ‘Stock Exchange’ or ‘Exchange’ can be used if the promoter of the LLP produces ‘No Objection Certificate’ from SEBI.

Request A Quote

We specialize in providing online company registration and compliance services for all types of business entities. Our processes are fully digital so that we can be at your service irrespective of where you are.