LLP Registration

What is an LLP?

LLP or Limited Liability Partnership is an alternative business form that provides the advantages of a limited liability company and the flexibility like that of a partnership firm.

An LLP, therefore, exhibits elements of both partnerships and corporations. This innovative and most awaited form of company was introduced into the Indian corporate world in 2009 by the Limited Liability Partnership act of 2008.

This unique hybrid combination of a limited and partnership company is thus suitable for small, medium-sized businesses or professionals.

Being one of the easiest types of businesses to incorporate and manage there are over one lakh registrations received in India since the introduction. Minimum two partners can incorporate an LLP, there is no upper limit as such.

In an LLP one partner is not responsible for the other partner’s misconduct or negligence. The mutual rights and the duties of the partners with an LLP are governed by an agreement that is signed between the partners.

As LLPs, are not capable of issuing equity shares LLPs should not be chosen for any business that plans for raising equity funds Angels investors, Venture Capitalists or Private Equity.

RELATED GUIDES

  • How to register an LLP?
  • What documents are required for LLP regitsration in India?
  • LLP Name Availability
  • Post Incorporation Complainces of LLP
  • What is the difference between an LLP and Partnership ?
  • How to convert a Partnership into an LLP?
  • LLP Form 8
  • LLP Form 11
  • An engagement manager reaches out to you for the collection of necessary documents.
  • Submit the data online through your eauditors website or mobile application.
  • The received information is verified and the process for obtaining the Digital Signature is initiated.
  • After submitting DSC the applicant has to complete OTP verification or Video KYC check.
  • A request is filed with the MCA for reserving the name of the LLP.
  • On receiving the documents we draft the incorporation documents and send them to the partners for signatures.
  • A scanned copy of the documents must be uploaded on the eauditors platform.
  • The signed documents along with the application are then sent for approval to the MCA which takes around 2-5 working days.
  • A bank account is opened in the name of the LLP, in parallel to this we also draft an LLP partnership deed. This deed must be signed by all the partners and on a stamp paper which is then to be uploaded to the eauditors Platform within 25 days of incorporation.
  • The signed deed is then verified by the engagement manager and uploaded on the MCA portal within 30 days of incorporation.
  • The average time for the process of incorporation of an LLP takes around 15-20 working days subject to the Government processing time and submission of documents by the client. An assigned engagement manager will reach out to you for the collection of the necessary documents for the registration of LLP. The data can be submitted online through our eauditors mobile app or the website.
  • After receiving the information of the engagement manager will verify the documents and the process for obtaining Digital signatures would commence. On the submission of the digital signatures, the applicant needs to complete the OTP verification and video KYC check. Simultaneously, we also file a request with the MCA for reserving the name you have selected for LLP.
  • On obtaining the approval of the name and the digital signatures, we draft all the documents for the incorporation of the LLP and send them to the partners for signature. All of the partners then must sign the documents and upload them on the eauditors platform.
  • The signed documents are then submitted along with the application for the incorporation of an LLP to the MCA. The approval from the MCA takes around 2-5 working days. Once the approval is obtained the LLP would be incorporated and we begin with the process of helping you in obtaining a PAN for the LLP and also opening a bank account in the name of an LLP. Simultaneously, we also draft the LLP partnership deed. This partnership deed must be signed by all the partners on a stamp paper and the signed copy must be uploaded on the eauditors platform within 25 days of incorporation. Later, the signed LLP partnership deed is verified by the engagement manager and uploaded on the MCA portal within 30 days of incorporation for the final processing.

For the registration of an LLP in India following documents are required. We at eauditors carry on LLP registration with just a nominal fee of Rs.7899.

For the Partners:

  • PAN card or Passport if the applicant is a foreigner.
  • Drivers license or Aadhar card, resident card or election card, or any other identity proof issued by the government.
  • Less than 3-month-old bank statement or telephone bill.

Registered office proof:

  • The authorization from the landlord ( Name mentioned in the Electricity bill or Gas bills or Property Tax receipt or sale deed) to use the premises as a registered office. This acts as a NOC from the landlord and;
  • Proof of evidence of any utility services like gas, electricity, telephone depicting the address of the premises bearing the name of the owner or document, which is not old than two months.

There are several reasons why people opt for LLP over Private Limited Company incorporation. LLPs are considered to be easier to set up and flexible form of business. Entrepreneurs find it feasible to start their organization as it is comparatively hassle-free in day to day operations. Here, we take a look at the various advantages of LLPs.

Low registration cost: The cost of registering an LLP is comparatively lower than that of incorporating a public limited company or a private limited company. You can register an LLP here through eauditors at just 7899.

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

No limits on the owners of the business: An LLP requires a minimum of 2 partners but there is no such upper limit on the maximum number of partners. Whereas in a private limited company there are restrictions on having more than 200 members.

No requirement of compulsory audit: Whether the company is Public or Private irrespective of their share capital is expected to get its account audited. But here in the case of LLPs, there is no such mandatory requirement and this is considered to be one of the significant compliance benefits of forming an LLP. A Limited liability company is supposed to get its audit done only in two cases

  • When the contribution of LLPs exceeds over Rs. 25 lakhs or
  • When the annual turnover of LLPs exceeds over Rs. 40 lakhs.