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Limited Liability Partnership

A legal business structure is a limited liability partnership (LLP). The most significant advantage of a "Limited Liability Partnership" is that one partner is not responsible for another partner's misbehavior or carelessness. Limited Liability Partnerships provide owners with the benefit of "limited liability" while also requiring relatively little maintenance.

A limited liability partnership (LLP) is a business structure that offers its owners some liability protection and tax reductions, and other benefits. It's a frequent structure among professionals that start a practice jointly, such as doctors, attorneys, and accountants.

Procedure for forming an LLP.

To form an LLP in India, follow these steps:
  • You must have a minimum of two partners.
  • All specified partners must have a Digital Signature Certificate.
  • For all approved Partners, DPIN is required.
  • The LLP's name should not be confusingly similar to the name of any other LLP or trademark registration.
  • The LLP's Partners make a capital contribution.
  • You must require LLP (Limited Liability Partnership) Agreement.
  • Proof of the LLP's registered office.

Steps in the Registration Process

Step 1.

Get the DSC and DIN for the Limited Liability Company's proposed first Directors is the first step.

Step 2.

An application for a name reservation can be filed with the Registrar of Companies (ROC).

Step 3.

After receiving the ROC's approval, file the Limited  Liability company's incorporation application in the prescribed format.

Step 4

If the registrar is pleased with the Limited Liability company's application for incorporation, the Certificate of Incorporation is issued.

TaxDraw is an excellent platform and a forward-thinking idea that assists clients in India with end-to-end registration and management consultancy services. With TaxDraw, forming a Limited Liability Partnership is fully functional, simple, smooth, affordable, and rapid. TaxDraw may also help you with your LLP annual filing!

Compliance LLP: What You Need to Know

Registration for the GST

The GST registration is online, and the GST Department does not require any physical documentation to be presented.

GST Return

Once a Limited Liability Partnership (LLP) is GST registered, it is necessary to file GST returns. All registered taxpayers, including LLPs, are required to file GST returns. Depending on the sort of GST return you're filing, you can file it monthly, quarterly, or annually.

Accounting

Every LLP must keep and maintain accounting records that are sufficient to show and explain the LLP's transactions and indicate the LLP's financial situation with reasonable accuracy. The books of account must be preserved and maintained for a period of eight years at the LLP's registered office.

ROC annual filing

Every year, LLPs must file ROC Form 8 by the 30th of October. The Statement of Accounts and solvency are detailed on Form 8. LLPs must also file ROC Form 11 by the 30th of May each year. Form 11 contains information about all Designated Partners, such as if the LLP's management has changed.

Audit under IT ACT

Every Limited Liability Partnership with a turnover of more than INR 2 crore in the case of a business or INR 50 lakh in a profession is required by section 44AB of the Income-tax Act to have its books of accounts tax audited. By the 30th of September, any tax audit conducted under section 44AB must be completed and filed.

IT Returns

Regardless of its transactions, every Limited Liability Partnership is required to file annual Income Tax Returns. It must be filed by LLP by July 31st (if not covered by audit) or September 30th (if covered under audit).

Registration of Trademarks

Trademarks are required for LLPs, but they are not necessary. The LLP's name will only be protected to the extent that no other LLP will be registered under a substantially similar word. You may always register a trademark if you have an excellent brand name because it must obtain protection under several trademark classes.

Documents Required for incorporating a partnership firm

  • Passport Size Photograph
  • PAN Card
  • ID Proof (any one)
  • Aadhar Card/Voter ID /Driving License /Passport
  • Latest Bank Statement(Last 2 month bank statement)

Documents for Registered Office Address

If Property Owned by Directors /Shareholder

  • Sale Deed of Property
  • NOC from the Owner (format given by our company)

If Rented Property

  • Rent Agreement
  • NOC from the Owner (format given by our company)

Any one Document Require from Below :

  • Electricity Bill / Telephone Bill / Mobile Bill

Advantages

Separate Legal Entity

In the viewpoint of the law, an LLP benefits from Separate Legal Identity, which establishes that the business' assets and liabilities are not the Partners' assets and liabilities.

Lower Registration cost

The cost of forming an LLP is significantly less than that of creating a public limited company or a private limited company. Through TaxDraw, you can register an LLP.

No Limit on owners of the business

A limited liability partnership (LLP) requires a minimum of 2 partners, but there is no limit to the number of partners. A private limited company, on the other hand, cannot have more than 200 members.

Compulsory Audits are not Required

In the case of LLPs, there is no requirement for a compulsory audit. An audit is required only when the company's turnover surpasses Rs 40 lakhs, and the contribution exceeds Rs 25 lakhs.

Basic requirements to Limited Liability Partnership

  • A minimum of two partners is required.
  • All partners must have a DPIN (Designated Partner Identification Number)
  • All partners must have a DSC (Digital Signature Certificate).
  • There is no need to share capital in an LLP, although each partner contributes.

What You Will Receive From Us

  • Incorporation Certificate
  • LLP Agreement
  • LLP PAN Card
  • LLP TAN/TDS Number
  • Master File of Incorporation
  • DIN for Partners

Plans

Rs. 6999 All inclusive price

Starter

  • 2 DSC (2 Years Validity)
  • 2 DIN
  • LLP Name Approval
  • LLP Deed Preparation
  • MCA Filing Fee
  • PAN & TAN Number
  • PF & ESI Registration
  • Expert Support
Rs. 7499 All inclusive price

Plus

  • 2 DSC (2 Years Validity)
  • 2 DIN
  • LLP Name Approval
  • LLP Deed Preparation
  • MCA Filing Fee
  • PAN & TAN Number
  • PF & ESI Registration
  • GST Registration
  • Expert Support
Rs. 12999 All inclusive price

Pro

  • 2 DSC (2 Years Validity)
  • 2 DIN
  • LLP Name Approval
  • LLP Deed Preparation
  • MCA Filing Fee
  • PAN & TAN Number
  • PF & ESI Registration
  • GST Registration
  • After Registration Annual Compliances
  • A. Business Commencement Form Submission
  • B. Auditor Appointment
  • C. Director KYC
  • C. Annual Compliances
  • Expert Support

FAQ's

Yes, following the provisions of clause 58 and Schedule II of the LLP Act, an existing partnership firm can be changed into an LLP. For such conversion and formation of an LLP, Form 17 must be filed simultaneously with Form 2.

No, the LLP's name must finish in either "Limited Liability Partnership" or "LLP." The term 'limited' may only be used in the name of a 'Limited Liability Partnership.'

Under “traditional partnership firm”, every partner is liable, jointly with all the other partners and also severally for all acts of the firm done while he is a partner. Under LLP structure, liability of the partner is limited to his agreed contribution.

• General partnerships and limited liability partnerships (LLPs) are taxed at a fixed rate of 30%

• All other protections of the Income Tax Act apply similarly, except that partnership firms are covered by the current taxation scheme, which means that if turnover is less than Rs. 2 crores in business or Rs. 50 lakh in the case of a profession, there is no need to keep books of accounts or have them audited, whereas LLPs are expressly not covered.

There seems to be no minimum capital contribution requirement. It can be registered even if the total capital contribution is only Rs. 100.

No, only private/unlisted public companies can be converted into LLP.

Log on to the LLP portal and submit LLP Form No. 1 (Application for reservation or change of name), including the required fee and the digital signature of the designated partner intending to form an LLP.Also, see Section-15 of the LLP Rules and Rule-18 of the LLP Rules for LLP name eligibility guidelines.