Divya Seth
Thank you Lawtendo helping me in registering my LLP firm without any hassle in such a short span of time
Limited Liability Partnership (LLP) is a type of partnership formed under the Limited Liability Partnership Act, 2008. This act came into the picture from the year 2009. It is used as an option to individuals opting to conduct business or work in the corporate sector. Most people opt for LLP as it is flexible and the operations are also suitable. It is formed when an agreement is made among its partners which is a mutual one. LLP can also be registered online. Even though it is a kind of partnership, The Indian Partnership Act,1932 does not apply to the Limited Liability Partnership. There is also foreign direct investment allowed in the LLP. Consult the Best Lawyer Online Now Features of LLP It has a separate existence in the law. Different from its partners. It has a perpetual succession, i.e. it is still into the picture when either of the partners passes away. All the partners are bound by an agreement stating their rights and duties. No partner is held liable for the acts of others. Fewer compliances and less time required to form LLP They need to maintain their accounts annually and they need to file a statement of solvency and statement of accounts with the registrar. However, some might be exempted by the registrar to do so based on classes. There are few important things to know about LLP which are as under: Benefits of LLP 1. Easy to enroll Since you are a business and searching for another beginning, at that point you will be happy to realize that enrolling in an LLP is simple and smooth. The prerequisites for LLP enlistment are easy and straightforward. The essential prerequisite is that out of the 2 partners one should be a resident of India. The enrolled office ought to be inside the domain of India. 2. No base capital prerequisite for LLP There are no base capital necessities in LLP. You can begin your business even with Rs.8000 capital. This is on the grounds that individuals ordinarily face the capital emergency in the initiation. Further, the expense of enrolling the LLP is likewise very less. 3. Easy to work LLP is the least demanding type of business as there are very few commitments on the accomplices. All the obligations and duties of accomplices are referenced in the association deed. It is not difficult to capacity and lead. In a private restricted organization, you involve board goals to be passed for taking any decision; however, there is no such commitment in LLP. 4. Lesser compliances than Private Limited Company Whenever you have enrolled in an LLP there are relatively few compliances you need to follow. For new organizations, it is an ideal beginning. There are no such complications or any kind of compulsion to hold the Annual General Meeting, The General Meeting, and the Extraordinary General Meeting and so on, which imposes lesser compliances as compared to Private Limited Company. Correspondingly, the partners can go to a choice and put together their interior administration commonly which will be in the LLP Agreement. All it takes are only two forms namely, Form 8 and Form 11. 5. Separate individual according to the law As a different lawful element, you have the ability to make a lawful move under the LLP and not the partners. An LLP can sue and be sued by others. Accomplices are not obligated on account of LLP in any legitimate case. 6. Personal resources stay safe The partners are shielded from the obligations of the LLP. As such, the partners won't be at risk exclusively for the obligations of the business. This is an additional illustration of restricted obligation. 7. Partner not at risk for the activities of another accomplice The law says that in the event that in an LLP an accomplice submits a cheat, at that point the other partners won't be held at risk for his activities. Similarly, if any of the partners was careless or thoughtless and some misfortune was brought about then that specific partner needs to bear the misfortunes. 8. Separate CIBIL Score In LLP, an accomplice is a specialist of the business henceforth the CIBIL score of business and accomplices are unique. The accomplices alone will have an alternate CIBIL score and the LLP will have extraordinary. Along these lines, regardless of whether the accomplices have an awful CIBIL score, the same will not have an accident on the CIBIL score of the LLP. 9. Loan to accomplices In the Company demonstration, an organization can't give credit to its chiefs as it is restricted by law. No, when it comes to an LLP, this isn't the situation. Under LLP, the business can give credit to its partners if the equivalent is allowed by the LLP arrangement. 10. Easy to Shut down In the event that something turns out badly in LLP and you intend to stop the business/association, you can do as such without numerous guidelines. The shutdown of an LLP can be either intentionally or by the board. Get in touch with the Best Lawyer Online
Minimum Requirements
Minimum 2 people are necessary to constitute an LLP. But there is no such standard for maximum people or partners.
There is no clause of minimum capital. The amount which is mentioned in the agreement shall be its minimum capital.
At least one person, who is one of the partners, should be a resident of India.
The most important requirement is that the name of the LLP shall be a one of its kind names and shall not have been used before by any LLP or firm carrying out business.
Before starting the process of registration, you must enroll for the DSC of the designated partners of the proposed LLP. Applying for DSC is important because the registration process of LLP is done online and requires Digital signatures.
After applying for DSC the next step is to enroll for DPIN and DIN application for the proposed Partners of the LLP. Within 5 to 7 working days, DPIN and DIN, The application for allotment of DIN have to be made in Form DIR-3.
The Name of the LLP should be cross-checked with the ROC and the trademark registry to avoid any infringement of someone else Trademark or Other Company /LLP Name. The application for the Name approval of LLP is submitted in Form RUN-LLP. It is an online application, where two names in order of preference can be filed with a note on the significance of the Name and the business activities.
Once the name is approved, it is essential to draft the Memorandum of association and Articles of Associate. Both documents are registered with the MCA with the agreement statement.
The form for incorporation is FILLIP(Form for incorporation of Limited Liability Partnership) which must be registered with the Registrar who has jurisdiction over the state in which LLP’s registered office is located.
Then one requires to apply for PAN and TAN. Incorporation certificate, MOA, AOA and PAN can be submitted with the bank for opening your bank account.
LLP agreement looks after the mutual rights and duties between the LLP and its partners.LLP agreement must be registered in Form 3 which is to be submitted in 30 days of the date of incorporation.
LLP formation starting from obtaining DSC to Filing Form 3 takes around 15 days subject to availability of all the documents.
Every document required must be self-attested.
Passport size photographs of the partners.
Any ID proof issued by the government of India (for eg. Aadhar, Voter id, etc)
PAN card
Address proof of the partners.
Bank Account details
Office details
Permanent address of the partners
Partnership agreement
If the office is a rented premise, then all the documents such as rent agreement, electricity bill, etc shall be attached. If it is personally owned then the sale deed, electricity bill should be attached.
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