LLP Registration in India

Limited Liability Company in India or LLP was launched in the year 2008 which is a type of business registration that provided the dual benefit of a Partnership Firm and company. It is one of the best registration types popular among start-up and professional service-based businesses. You can apply for LLP registration with Groom Tax. You’ll get hassle-free registration, complete documentation, and compliance processes done with our LLP Registration in India.

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Overview

A Limited Liability Partnership (LLP) is a partnership in which all the partners have limited liability. It therefore displays fundamentals of partnerships and corporations. One partner is not liable or responsible for misconduct or negligence of another partners in LLP. This is a main difference from that type of an unlimited partnership.

Every LLP must have at least two designated partners being individuals, at least one of them should be resident in India. Liability of partners is limited to the extent of agreed contribution in the LLP and no partner is liable for un-authorized actions of other partners, thus each individual partners are protected from joint liability created by wrongful business decisions or misconduct of another partners. LLP has lesser compliance requirements as compared to a Private limited company.

Benefits

Limited Liability:  The Liability of partners is limited to the capital contribution as per LLP agreement. Partners not liable to pay losses and liability of LLP by personal assets.

Separate Legal Entity:  LLP is a separate legal person in the eyes of law and different from its partners. LLP can operate, contract and own assets and liabilities by its own name like any individual person.

Eligible for FDI:  You can get the investment from foreign countries also easily in the LLP under automatic approval route.

Eligible for startup India Recognition:  LLP can be recognized as startup and get the benefit of income tax exemption u/s 80-IAC of the income tax act.

Lower Compliance Burden:  Main benefit to form an LLP over company is less compliance burden in terms of no need of mandatory audit up to certain level of turnover or contribution and no requirement of holding of general meeting and board meetings.

List of Documents Required

LLP Details
  • Two proposed names
  • The objective of the proposed LLP
Proof of Registered Office
  • Latest Utility bill i.e., electricity bill, landline bill or water bill, etc.
  • For rented place, NOC required in the name of the proposed LLP
Subscribers & Partners Documents
  • Pan card of all the subscribers/partners
  • Photograph of all the subscribers/partners
  • Aadhar card of the subscribers/partners
  • Mobile No. and email Id of all the subscribers/partners
  • DL/voter id/ passport, anyone documents of all the subscribers/partners
  • Bank statement/ electricity bill in the name of the subscribers/partners, anyone documents of all the subscribers/partners
Other Information
  • Capital Contribution and sharing ratio of partners
  • Whether director or partner in any existing Co/LLP
  • Place of birth, Occupation and Educational qualification of director
  • Present residential address and duration of stay

Process

  • 1

    Select a unique name for your LLP

  • 2

    Apply for DSC of subscribers/partners.

  • 3

    Preparation of form-9, consent letter & other documents.

  • 4

    Preparation and filing of form fillip.

  • 5

    Get certificate of incorporation, and then apply separately for PAN & TAN.

  • 6

    Drafting of LLP deed

  • 7

    Online filing of form-3 within 30 days from the date of incorporation

Deliverable

  • Certificate Of Incorporation
  • LLP Name Approval
  • 2 Partner Identification Numbers (DIN)
  • Digital Signature Token For 2 Partners
  • Draft LLP Deed
  • LLP PAN Card
  • LLP TAN Number

Compare-Table

Particulars Private Ltd Company Limited Liability Partnership One Person Company Partnership Proprietorship
Separate Legal Entity Yes Yes Yes Yes No
Limited Liability Yes Yes Yes No No
Registration Mandatory Mandatory Mandatory Optional No
Statutory Audit Mandatory Dependent Mandatory No No
Owners/Partners 2 - 200 2 - Unlimited 1 Person 2 - 50 1 Person
Tax Rate 25% 30% 25% 30% Slab Rate
Legal Compliance High Moderate Moderate Least Least
Eligible for Start-up India Benefits Yes Yes Yes Limited No
Eligible for FDI Yes Yes No No No
Funding from Investor Yes No No No No
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FAQs

What is the eligibility of designated partners/partners in an LLP?
In LLP, only an individual can become a “Designated Partner” however, any company, LLP, or an individual can become a partner of the LLP firm.
I am an NRI. Can I start an LLP business in India?
Yes, absolutely, you can start your business as an LLP in India in fact, foreign Nationals can also enter into an LLP Partnership to do so. Although, one of the designated partners in an LLP must be Indian National.
Is the registration process of Groom tax fully online?
Yes, the registration process of Groom tax is fully online. You can contact us through emails, phone numbers, etc. to get yourself registered.
Can an existing partnership firm be converted to LLP?
Yes, an existing partnership firm can be converted into LLP by complying with the Provisions of clause 58 and Schedule II of the LLP Act. Form 17 needs to be filed along with Form 2 for such conversion and incorporation of LLP.
What is the duration during which the approved name is available for formation of the LLP? Or What is the validity period of approved name of LLP?
The approved name of LLP shall be valid for a period of 3 months from the date of approval. If the proposed LLP is not incorporated within such period, the name shall be lapsed and will be available for other applicant/ LLP. Please note that there shall not be any provision for renewal of the name
Whether name of LLP can end with words like ‘Limited’ or ‘Pvt. Limited’?
No, name of the LLP shall end with either ‘Limited Liability Partnership’ or ‘LLP’. Word ‘limited’ shall be allowed in name only within ‘Limited Liability Partnership’.
What are the documents required to be filed by a LLP annually?
LLP is required to file LLP Form 8 (Statement of Account & Solvency) and LLP Form 11 (Annual Return) annually. The ‘Annual Return’ is required to be filed within 60 days of close of the financial year and ‘Statement of Accounts & Solvency’ shall be filed within 30 days from the end of six months of the financial year to which it relates. Every LLP has to maintain uniform financial year ending on 31st March of a year.
What is “Statement of Accounts and Solvency” and whether it has a prescribed format?
Every LLP is required to file ‘Statement of Accounts & Solvency’ in prescribed LLP Form 8 which contains a declaration on the state of solvency of the LLP by the designated partners and also information related to statement of assets and liabilities and statement of income and expenditure of the LLP. This form has to be filed by the LLP on an annual basis.
I have incorporated a LLP on 1st December of financial year, when do I require filing my statement of accounts and annual return?
In case LLP has been incorporated on or after 1st October of financial year, then LLP can close its first financial year either on the coming or next 31st March i.e. LLP files its first financial year details for 18 months.
What is the minimum number of partners required to start LLP?
According to the LLP Act, a minimum of two designated partners are required to start an LLP Firm. The designated partners are responsible for fulfilling all the essential requirements involved in starting and running an LLP.
What kind of start-ups commonly register LLPs?
Start-ups looking for venture capital funding typically do not register themselves as an LLP organization. The venter capitalist usually invests in Private or public companies.
Is it cheaper to run an LLP than a private limited company?
Yes, it is cheaper to tun an LLP firm than a Private limited company, especially during the early days of the start-up. Any compliance like audit only applies to LLP if the turnover becomes sizable.
I want to incorporate a LLP with more than 200 designated partners and partners. However, Form 2 has the limit of only 200 partners to be entered. What shall I do in that case? Or When Addendum to Form 2/ 4 is required to be filled by LLP?
Filing of addendum to Form 2 with Form 2 or addendum to Form 4 with Form 4 is required to be filed if the Total number of designated partners and partners for which the Form is filed exceed 200.
Which forms are required to be filed to Registrar in case of appointment of new partners/ resignation of existing partners from the LLP?
eform 3 and eform 4 are required to be filed for appointment of new and resignation of existing partners within thirty days of such cessation or appointment without additional fee and with additional fee thereafter
Is it mandatory to file and get registered the partnership agreement under LLP?
Yes, it mandatory to execute and file LLP Agreement in view of Section 2(0) & (q) , 22 and 23 of the Act.

As per provisions of the LLP Act, in the absence of agreement as to any matter, the mutual rights and liabilities shall be as provided for under Schedule I to the Act. Therefore, in case any LLP proposes to exclude provisions/requirements of Schedule I to the Act, it would have to enter into an LLP Agreement, specifically excluding applicability of any or all paragraphs of Schedule I

The registered office of my LLP has been shifted from the jurisdiction of one ROC office to another. How do I file eForm 15 with both the ROCs?
You are required to file eForm 15 at LLP portal only once. Existing registrar shall process the eForm and forward the same to the new Registrar for registration. Please note that approval of such eForm 15 shall not be allowed in case there is any other eForm(s) pending for payment of fee or is under processing in respect of the LLP. Upon approval, Certificate for change of registered address from the Registrar office shall be provided.

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