Limited liability partnership

Limited Liability Partnership, popularly known as LLP, is the body corporate which is incorporated by atleast 2 partners. Partners of LLP are known as designated partners, these can be individuals or body corporates. LLP enjoys the benefits of both the body corporates and the partnership firms. It is legally recognized entity which is registered with Registrar of Companies (RoC), Ministry of Corporate Affairs just like companies.

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Service Overview

Limited Liability Partnership, popularly known as LLP, is the body corporate which is incorporated by atleast 2 partners. Partners of LLP are known as designated partners, these can be individuals or body corporates. LLP enjoys the benefits of both the body corporates and the partnership firms. It is legally recognized entity which is registered with Registrar of Companies (RoC), Ministry of Corporate Affairs just like companies. The liability of the Designated Partners of LLP is limited to the amount of contribution made by them respectively. Hence, Designated Partners are not personally liable for debts of company beyond their respective share of contribution. This is why, it is said Designated Partners have limited liability. Minimum Designated Partners should be 2 and there is no limit on maximum number allowed.

Cost of Digital Signature, Government Fees and Stamp Duty, if any, is payable by the client in addition to the Professional Fee being charged by indian MSME Helpline.

Our Package includes the followings:
  • LLP Name Approval
  • PAN & TAN
  • Designated Partner Identification Numbers of 2 Partners
  • Incorporation Certificate
  • LLP Deed Drafting
  • MSME Registration (Complimentary
  • GST Registration

Brief Process

           Incorporation Process

  • Step-1: Foremost step is to apply for name reservation of proposed LLP via RUN-LLP option on MCA Portal.
  • For name approval, apply with 2 proposed names in RUN-LLP. 
  • Step-2: Apply for Digital Signatures (DSCs), these are mandatory requirement to the incorporation forms, which is to be filled and uploaded online on MCA Portal.
  • Step-3: Once the name of the company is approved (resevered), Form LLP_FiLLiP is to be filled in and uploaded within 20 days of receipt of name approval letter.
  • Step-4: Upon Completion of form, this is to be digitally signed and uploaded on MCA Portal
  • Step-5: Upon uploading the form, challan is required to be paid.
  • Step-6: Apply for PAN (Permanent Account Number)
  • Step-7: Filling an LLP Agreement in Form-3.

FAQ

Limited Liability Partnership, popularly known as LLP, is the body corporate which is incorporated by at least 2 partners. Partners of LLP are known as designated partners, these can be individuals or body corporates

As per Current laws, any person who is 

  • Of sound mind

  • Major in age

  • Undischarged insolvent

  • Adjudicated as an insolvent and his application is pending.

Like in case of companies, Directors are allotted DIN, the Designated Partners in LLP are allotted DPIN (Designated Partner’s Identification Number). It is issued by the Registrar of Companies (RoC). This is a unique number being assigned to any person who is director in a company or was a director in previous years. It usually takes 3-4 days to get a DPIN. Once DPIN is allotted, it can be used for the lifetime of the director.

    Advantages 

  • Since it is a separate legal entity, the assets and liabilities of LLP are different from those of its Designated Partners. 

  • Also, the liability of Designated Partners is limited only to investment made by them. If the LLP undergoes any debt, then the personal assets will never be used for paying off such debts.

  • LLP is never responsible/ liable for action of other partners done in their individual capacity.

  • Audit is not compulsory under Companies Act, 2013, like in case of companies.

  • The Income Tax Act also offers tax benefits to LLP.

  • LLP enjoys the benefits of body corporate and has the flexibility of partnership firms.

  • LLP has perpetual succession.

  • Unlike companies there is no requirement of minimum capital in case of LLP.
  • The particulars of the LLP are available on a public database; this improves the credibility of the company as it makes it easy to authenticate the details for stakeholders.
  • It is easier to dissolve or windup the existing LLP. 

Disadvantages

  • LLP cannot raise funds from the public.
  • Though compliances for LLP are minimal, but if one fails to comply with them before due date, penalty is attracted. 
  • Income Tax Returns and Annual returns are to be filed annually, even if no business transaction is done during the year.
  • Form 8 and form11 are mandatorily required to be filed within their respective due dates to RoC
  • LLPs cannot retain profits earned during the year and have to be mandatorily paid out to its partners. Such surplus is taxable in the hands of partners.
  • As per existing company laws, two non-residents cannot incorporate LLP in India without any resident being a partner in the LLP.

Yes, Private Limited Company can be converted into LLP upon completion of protocols as defined in Companied Act, 2013.

Ministry of Corporate Affairs has introduced following forms for LLP Incorporation:

  • Form LLP_FiLLiP

  • Form 3

 No, this is the biggest disadvantage of LLP.

Minimum of 2 Designated Partners (individuals or body corporates) are required to start LLP Incorporation.

Following documents are required: 

  • Proposed name of the LLP;

  • Description of business activity of the proposed LLP

  • Self-attested copy of PAN card of the proposed Designated Partners;

  • Self-attested copy of identity proof (Voter Id/ Passport/ Driving License) of the proposed Designated Partners;

  • Self-attested copy of residential address proof (Bank Statement/ Electricity Bill/ Telephone Bill/ Mobile Bill) of the proposed Designated Partners;

  • Passport size photograph of the proposed Designated Partners;

  • Proof of ownership and Utility bill (Electricity/ Telephone/ Gas/ Water) along with No-Objection Certificate, if the premises of proposed registered address is owned by any one of the Designated Partners.

  • Notarized Rent Agreement and Utility Bill (Electricity/ Telephone/ Gas/ Water) along with No-Objection Certificate, if the premises of the proposed address of the Company is rented;

  • Details on investment/ contribution to be made in proposed LLP

  • Details of the proposed Designated Partners:-

    • Name

    • Mobile No.

    • E-mail Id.

    • Educational Qualification

    • Occupation

    • Director Identification Number (DIN)/ (DPIN), if any

    • Place of Birth (District and State)

The procedure is as follows:

  • Step-1: Foremost step is to apply for name reservation of proposed LLP via RUN-LLP option on MCA Portal.

  • For name approval, apply with 2 proposed names in RUN-LLP. 

  • Step-2: Apply for Digital Signatures (DSCs), these are mandatory requirement to the incorporation forms, which is to be filled and uploaded online on MCA Portal.

  • Step-3: Once the name of the company is approved (resevered), Form LLP_FiLLiP is to be filled in and uploaded within 20 days of receipt of name approval letter.

  • Step-4: Upon Completion of form, this is to be digitally signed and uploaded on MCA Portal

  • Step-5: Upon uploading the form, challan is required to be paid.

  • Step-6: Apply for PAN (Permanent Account Number)

  • Step-7: Filling an LLP Agreement in Form-3. 

Mandatory ROC compliance for LLP includes filing of Form 8 and Form 11. These forms are to be certified by CA/CS/CWA.

In case of LLPs, Provisions of Audit are made compulsory only when the turnover in any financial year exceeds Rupees Forty Lakhs or whose contribution exceeds Rupees Twenty Five Lakhs. However, any LLP can voluntarily choose to get its accounts audited.

Major Difference is that in case of Partnership Firms, the liability of partners is unlimited; also all partners are jointly and severally bound by activities undertaken by any one partner.

On the other hand, as the name suggests in case of LLP, designated partners have limited liability only to the extent of their investment in LLP. Further, no partner can be held liable for any activity undertaken by any one partner in his individual capacity.


There are lesser compliances in LLP as compared to a Company. Also, LLP is more flexible as it can create its own clauses in the LLP Agreement mutually decided by all designated partners.

Operational Flexibility:

Operational Flexibility:

LLP Agreement deed among partners of an LLP, clarifies operating structure including rights and responsibilities of the partners. Typically, LLP would select a �Designated Member� who would control day-to-day operations. It can have individuals or existing businesses as members. Further, this structure allows to clearly define roles of the partners and their respective responsibilities.

Limited Liability of Partners:

Limited Liability of Partners:

LLP offers a great advantage to the partners for limiting their personal risk. Liability of financial contribution of any partner is restricted to the capital contribution as per the LLP agreement. Further, one partner is not held responsible for the actions of negligence or misconduct of any other partner.

Separate Legal Existence:

Separate Legal Existence:

Registration of LLP creates a separate legal identity than its partners. Governed by the LLP Act of 2008, it allows the business to contract with other entities, take legal action, own assets and borrow funds in the name of an LLP itself. It is a major advantage that is not available to a regular partnership firm

Lower Compliance Requirement:

Lower Compliance Requirement:

A key benefit of registering an LLP over a private company is that it has lesser compliance requirements. It doesnt have a mandatory audit requirement until a certain level of turnover or contribution is reached. Unlike companies, compliances related to board meetings, statutory meetings, etc. do not apply to LLPs.

Documents Required

  • Details on investment/ contribution to be made in proposed LLP
  • Description of business activity of the proposed LLP
  • Passport size photograph of the proposed Designated Partners
  • Details of the proposed Designated Partners:- Name , Mobile No, E-mail Id, Educational Qualification, Occupation, Director Identification Number (DIN)/ (DPIN), if any Place of Birth (District and State)
  • Self-attested copy of PAN card of the proposed Designated Partners
  • Self-attested copy of residential address proof (Bank Statement/ Electricity Bill/ Telephone Bill/ Mobile Bill) of the proposed Designated Partners
  • Self-attested copy of identity proof (Voter Id/ Passport/ Driving License) of the proposed Designated Partners
  • Notarized Rent Agreement and Utility Bill (Electricity/ Telephone/ Gas/ Water) along with No-Objection Certificate, if the premises of the proposed address of the Company is rented
  • Proof of ownership and Utility bill (Electricity/ Telephone/ Gas/ Water) along with No-Objection Certificate, if the premises of proposed registered address is owned by any one of the Designated Partners.
  • Proposed name of the LLP
Limited liability partnership
Price

7750

Discounted Price

₹ 2499

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