Limited Liability Partnership (LLP) Registration
Limited Liability Partnership is an increasing company structure in India that combines partnership and limited liability benefits. It discusses the significance of LLP registration, its various types, required paperwork, registration procedures, benefits, and compliance duties. For registration of LLP contact the Registration Guru and get your registration certificate online and offline.
Why is LLP Registration Important?
1 Limited Liability Protection: Partner’s responsibilities are limited to their agreed-upon payments, which protects personal assets from business risks.
2 Legal Identity: An LLP is a separate legal entity capable of owning assets, entering into contracts, and acting in proceedings.
3 Tax Efficiency: LLP pays lower taxes and dividend distributions are exempted from tax.
4 Operational Flexibility: LLPs have no minimum capital requirement and fewer compliance obligations compared to private limited businesses
5 Ease of Ownership Transfer: Incorporation of LLP includes adding or removing partners makes ownership transfer easy.
Types of LLP Registration
1 General LLP: LLP registration is suitable for general activity across all industries.
2 Professional LLP: Specially designed for accountants, lawyers, and architects.
3 Family LLP: Suitable for family-owned enterprises seeking limited liability protection.
4 Startup LLP: Preferred by startups because of tax benefits and easier compliance needs.
Required Documents for LLP Registration
For Partners:
1 Identity Proof
2 Address Proof
3 Residential Proof
For LLP:
1 Proof of Registered Office:
Utility bill not older than two months.
NOC from the property owner
Rental Agreement or ownership documents
2 Digital Signature Certificate
3 Director Identification Number
Registration Process for LLP
1 Name Reservation
2 Obtaining Digital Signature
3 Preparation of Incorporation documents
4 Drafting of LLP Deed
5 Filing of Incorporation Documents with MCA
6 Filing Registered Office Form
7 Filing of Initial LLP Deed with MCA
Compliance Obligations for LLPs
1 Annual Return Filing: File Form 11 detailing all partners.
2 Statement of Accounts: The process of LLP registration involves submitting Form 8 annually along with the financial statements.
3 Income Tax Returns: File return every year by the due date.
4 DIN KYC: Complete annual KYC for designated partners.
5 Record Maintenance: Maintain accurate financial records.
6 Audit Requirements: Mandatory for LLPs with turnover exceeding Rs 40 lakh or contribution exceeding Rs 25 lakh.