Limited Liability Partnership (LLP) Registration

Key benefits of LLP registration include:
• Limited Liability: Partners’ personal assets are protected from business liabilities.
• Separate Legal Entity: LLPs are legally independent from their partners.
• Flexibility: Partners have the flexibility to manage the business while enjoying limited liability.
• Low Compliance Cost: Compared to a private limited company, LLPs have fewer compliance obligations.
• Perpetual Succession: The LLP continues to exist even if partners leave or change.

An LLP must have at least two partners. There is no upper limit on the maximum number of partners.

Key documents include:
• PAN card of all partners.
• Address proof of partners (Aadhaar, passport, driving license).
• Proof of registered office address (utility bill or rental agreement).
• LLP Agreement, defining the rights and responsibilities of the partners.

The LLP registration process typically takes 10 to 15 business days, depending on the availability of the desired name and timely submission of documents.

A DPIN is a unique identification number allotted to designated partners of an LLP. It is mandatory for all designated partners and can be obtained through an online application to the Ministry of Corporate Affairs (MCA) along with identity and address proofs.

Yes, foreign nationals can be partners in an LLP in India, subject to Foreign Direct Investment (FDI) rules and guidelines set by the Reserve Bank of India (RBI).

There is no minimum capital requirement to start an LLP. The contribution by partners can be in any form, including tangible or intangible assets such as money, property, and contracts.

A Digital Signature Certificate (DSC) is required for signing electronic documents submitted to the MCA during the LLP registration process. It ensures the authenticity and security of transactions.

Yes, an existing partnership firm can be converted into an LLP by following the procedure outlined in the LLP Act, 2008. The firm must file the necessary forms with the MCA to complete the conversion.

The steps to register an LLP are as follows:
1. Obtain a Digital Signature Certificate (DSC) for all partners.
2. Apply for a Designated Partner Identification Number (DPIN).
3. Reserve the LLP name with the MCA.
4. Draft and file the LLP Agreement.
5. Submit incorporation documents and forms with the ROC.
6. Receive the Certificate of Incorporation.

An LLP Agreement is a legal document that outlines the roles, responsibilities, and profit-sharing arrangements between partners. It serves as the backbone of the LLP and must be filed with the Registrar of Companies (ROC) within 30 days of incorporation.

• LLP: Partners have limited liability, and there are fewer compliance requirements. Suitable for professional services.
• Private Limited Company: Shareholders have limited liability, and the company has a more structured management hierarchy. Suitable for businesses seeking funding and scalability.

Designated partners are responsible for managing the day-to-day affairs of the LLP, ensuring compliance with legal requirements, and filing annual returns with the ROC. They have additional legal responsibilities compared to regular partners.

Annual compliance requirements include:
• Filing an Annual Return (Form 11) with the ROC.
• Filing a Statement of Account and Solvency (Form 8).
• Filing Income Tax Returns.
• Conducting an audit (mandatory only if the annual turnover exceeds ₹40 lakhs or contribution exceeds ₹25 lakhs).

Failure to comply with LLP regulations, such as failing to file annual returns, can result in penalties ranging from ₹100 per day of default, with no upper limit. Persistent non-compliance may lead to legal action or the LLP being struck off.

Yes, an LLP can change its registered office address by filing the necessary forms with the ROC. The process may vary depending on whether the change is within the same state or to a different state.

Yes, an LLP can be closed through voluntary winding up or by filing an application for striking off with the ROC if the LLP has not been conducting business for the last year.

Yes, partners in an LLP can transfer their ownership rights to another person, as outlined in the LLP Agreement. The transfer must be documented, and the ROC should be informed of any changes in the partners.

LLPs are taxed as partnership firms under the Income Tax Act, 1961. They are subject to a flat tax rate of 30% on profits, plus any applicable surcharges and cess. Partners are not liable to pay tax on their share of the LLP’s profits.

Profit-sharing in an LLP is determined by the LLP Agreement. Partners can agree on any ratio for sharing profits, and this ratio does not need to correspond to their capital contribution.

LLPs cannot raise equity funding by issuing shares, but they can raise funds through partner contributions or loans. Venture capital and angel investors typically prefer private limited companies for equity investments.

To add or remove a partner, the LLP must amend its LLP Agreement and file the necessary forms with the ROC. A supplementary agreement detailing the changes must also be signed by all partners.

• Partner: Contributes to the business and shares profits but may not have management duties.
• Designated Partner: Has additional responsibilities, including compliance with legal obligations and managing the business.

Yes, an LLP can have companies, LLPs, or other corporate entities as partners. At least two individuals must be designated partners, one of whom must be a resident of India.

To reserve an LLP name, you need to file the RUN-LLP form with the MCA. The name must be unique and must not resemble any existing company, LLP, or trademark.

No, an LLP cannot be directly converted into a Private Limited Company. However, you can start a new Private Limited Company and transfer the assets and liabilities of the LLP to the new company.

• LLP: Offers limited liability protection and is a separate legal entity.
• Partnership Firm: Partners have unlimited liability, meaning personal assets can be used to meet the firm’s obligations.

Udyogpro simplifies the LLP registration process by offering end-to-end support, from name reservation to filing the incorporation forms. Our experts guide you through the documentation and compliance, ensuring a hassle-free registration process.

Failure to file the annual return on time can result in a penalty of ₹100 per day of default. The penalty continues to accumulate until the form is filed, and prolonged non-compliance may lead to further legal action by the ROC.