LLP is the easiest form of business incorporation and to manage in India. Due to this easy process, easy documentation, simple and low compliance management, this is the most preferred form of the business format by the small and medium businesses that are cautious and want to grow slowly and also for family-owned or closely-held. LLP is the best option if you are looking at an easy and cost-effective form of business incorporation with equal popularity and benefits as Pvt Ltd company. Just LLPs cannot issue shares, ENVIZI provides you the best services in India for Private Limited registration, OPC registration, LLP registration, PLC registration, Trademark registration, Logo registration, Copyright registration, ISO certifications etc.
The LLP form of organization was introduced in India by the Limited Liability Partnership Act, 2008. A Limited Liability Partnership (LLP) is an incorporated business form that combines the features of a partnership and the company form of businesses.
LLP is a body corporate with all the features of a limited company. This is a new business organization structure in India with all the features of an LLC in the US and an LLP in the UK. This is an ideal organization for business.
In an LLP, a partner is not responsible or liable for another partner’s misconduct or negligence. Instead, all partners have limited liability, limited to their own acts of commission or omission, similar to shareholders’ liabilities in a limited company.
LLP registration is administered by the Ministry of Corporate Affairs (MCA), Government of India, through the office of the Registrar of Companies (ROC). The incorporation/registration process is fully electronic, i.e. applications and documents are filed online and the ROC issues a digitally signed Certificate of Incorporation (COI).
An LLP should have a minimum of two ‘Designated’ partners who are individuals and at least one of them should be resident in India. Where a corporate body is one of the LLP partners, it should nominate an individual as a Designated Partner. Designated partner of an LLP shall be responsible for all acts and things that are required to be carried out by the LLP in respect of compliance of the provisions and filing of documents/returns/statements under the LLP Act as well as things specified in the LLP agreement.
Advantages of LLP
The greatest benefit of LLP is limited liability. If anything happens to the company, its members are not personally affected; members are only liable for unpaid shares. Personal Assests are secured.
The feature of perpetual succession gives you the freedom to easily add or remove members in the LLP. There won’t be any harm to the LLP’s existence.
An LLP can borrow funds through bank loans, Investors, Venture capital, Brand Funding and various wide options available for the LLP format
LLP has a separate legal entity, It is like a separate individual apart from the Stakeholders. LLP creates a brand value in the market and people see it as a company, not as a proprietorship/partnership firm. Other benefits include a larger scope of business, good employees, ease of business with MNCs.
Due to any reason, if the company does not want to be run by existing stakeholders, one can transfer the rights and authorities to other or new Partners easily and without much hassles. Everything can be transferred or changed, partners, business Activity, registered office address. Or even the company can be sold off easily.
Along with being the partners, they can have a dual relationship with the LLP they can be suppliers, lenders, client, employee etc.
LLP can be formed with minimum Rs 10,000 authorized capital, unlike Pvt Ltd where minimum authorized capital to formed is Rs 1 lakh. So LLP can be formed by any small or big entrepreneur.
LLP has to maintain just 2 ROC compliances annually Form 8 and Form no 11. Private Limited has to maintain higher ROC compliances annually as compared to LLP.
There is no need of any audit to be done by Charted Accoutant and certified by him.
- PAN Card
- Identity proof
- Address proof
- Office Address Proof
- Example: Voting Card, Driving Licence, Passport
- Example: Passbook, Utility bills
- Minimum 2 Partners
- At least 1 of the designated partners shall be an Indian Resident
- If a body corporate is a partner, it has to nominate a natural person as its nominee
- The Partners and Designated Partners can be the same person or can be different persons.
- There is no concept of share capital, but there has to be some sort of contribution from each partner
- DIN (Director Identification Number) for all the Designated Partners
- DSC (Digital Signature Certificate) for all the Designated Partners
What You Get
- Director Identification No (DIN)
- Digital Signature (DSC)
- Name Approval Certificate
- LLP PAN
- Certificate of Incorporation
- LLP Agreement
- Current Bank Account Opening Assistance
- GST Registration
Steps For LLP Registration
Provide Basic Documents of Directors
Apply for DSC (Digital Signature)
Envizi will prepare Legal Documents
Envizi will file documents with ROC
Get Certificate of Incorporation