Overview of Limited Liability Partnership (LLP) Registration

Limited liability partnership or LLP Company Registration is used to establish a legal entity. Here the partners have a limited liability which helps to protect personal assets from the business debts. In order for LLP Company Registration In Mumbai, the partners have to file documents with the government authority to outline their partnership details. There needs to be a minimum of two members with no maximum limit to form an LLP. The LLPs usually operate under a partnership agreement with defined roles, responsibilities and profit sharing.

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What is an LLP?

A limited liability partnership or LLP Company Registration is a business structure which combines the features of both a corporation and a partnership. The partners get limited liability protection which shields their personal assets from liabilities and debts of the business. The partnership for the LLP Company Registration In Mumbai agreement outlines the role, responsibilities and profit-sharing agreement. There is a legal identity that allows the partners to enter into the contract and own the property in their name. The structure is common between professional service firms and small businesses that seek liability protection and wish for flexible management.

LLP Registration Prerequisites and Eligibility Conditions

Certain prerequisites and eligibility conditions have to be met for LLP Company Registration.

There has to be a minimum of two partners. There is however no upper limit on the number of partners that an LLP can have. This makes it suitable for both small and large businesses.

There have to be at least two designated partners for LLP Company Registration In Mumbai who are individuals and hold the director identification number or DIN. And at least one of the designated partners should be an Indian resident.

The company for LLP Company Registration In Mumbai should have a physically registered address in India. This address will be used for all legal notices and for official communications.

The name proposed for the LLP should be compliant with the guidelines of the Ministry of Corporate Affairs. It should not infringe on any trademarks that exist and should not be identical or offensive to any LLP company that exists.

The partner should have contributed capital to the LLP as per the terms agreed. This contribution can be in the form of property, money or services.

The identity proof and address proof documents of the partners will be needed to form the LLP. You will also have to give proof of the registry office and the partnership agreement to specify the responsibilities and roles.

The partners have to get the digital signature certificates from the government-approved agencies.

The partners for LLP Company Registration In Mumbai should draft as well as execute the LLP agreement by defining the duties, rights and obligations of every partner with respect to the management and operation of the LLP.

Features of LLP

The LLP Company Registration In Mumbai is a unique business structure which combines both the benefits of limited liability protection as well as that of a corporation. Here are some of the features of an LLP.

01

The liability protection to its partner is limited. This means that the partner's personal assets are protected from the liabilities and debts of the business. The partners are only liable for the capital contribution that they have made to the LLP.

02

The LLP is a separate legal entity and it is distinct from its partners. It can own its assets, sue and be sued and enter into contracts. This gives the LLP a perpetual succession. This means that the company does not change because of changing partners.

03

There is no limited capital needed to do an LLP Company Registration In Mumbai. The partners can contribute the capital based on their agreements and there is also no minimum amount prescribed.

04

The LLP Company Registration In Mumbai offers flexible management letting the partners decide on the management and the internal structure of the business. There are no extensive compliance needs or board meetings.

05

The LLP gets taxed as a partnership and here the income gets taxed at the partner level and not at the entity level. This saves them from double taxation where both the entity as well as the shareholder are taxed.

06

The LLP Company Registration In Mumbai have very few compliance needs as compared to companies. They do not have to maintain a lot of statutory records and hold annual general meetings.

07

There are no ownership transfer restrictions in the LLP. Partners are free to transfer their ownership to the other partners or to third parties.

Advantages of LLP

The LLP Company Registration enjoy several advantages which make them a popular business choice.

The main advantage is that the partner's personal assets are protected.
The LLP is a separate legal entity that lets it enter into contracts and own assets as well as incur liabilities
The LLPs enjoy flexibility in management where the partners can decide on the internal structure and the management of the business.
The LLPs enjoy saving on double taxation.
The compliance requirements are fewer in LLPs which reduces the administrative burden and the costs that are associated with the companies.

Disadvantages of LLP

There are also some disadvantages of LLP Company Registration that one should know about.

There is an unlimited liability charge for negligence. So, if a partner behaves unlawfully then they can be personally held liable for the damages and risk their personal assets as well.
The formation of the LLP is not as easy as that of a general partnership or sole proprietorship. There are many legal formalities and one needs to comply with the regulatory needs.
The LLPs could face challenges to gain public trust and credibility. Some investors may see LLPs as less stable because of their new status.
The LLPs could find it challenging to raise capital compared to companies. This is because they cannot issue shares which limits their ability to attract equity investment.

Registration Process for LLP

In order for LLP Company Registration the partners should

01

Get the Digital Signature Certificates (DSCs) for designated partners

02

They need to apply for the Director Identification Numbers (DINs) for designated partners, reserve a unique LLP name and file the form -1 with the Registrar of Companies

03

Prepare the file Form-2 along with the LLP Agreement within 30 days of its incorporation, and pay the decided fees and stamp duty. The RoC will issue a Certificate of Incorporation once everything is approved and this establishes the LLP as a legal entity and completes the LLP Company Registration In Mumbai.

Documents Required for LLP Registration

In order for LLP Company Registration as a limited liability partnership here are the documents that are required.

Identity proof for LLP Company Registration In Mumbai which could be a PAN card or Aadhar card copy of all partners

Copy of passports, voter ID cards or driver's license for address proof.

Proof of the registered office address which could be a copy of the rental agreement or the sale deed along with the utility bill which cannot be older than two months

A drafted LLP agreement that specifies the duties, rights and obligations of the partners and their operational details.

A subscription sheet that is signed by all partners.

Consent and the designation form signed by the designated partners.

A digital signature certification of all the designated partners.

The director identification number of all the designated partners.

Available LLP Forms

There are various LLP Company Registration forms that are needed for varied purposes at the time of the LLP registration process and also to meet ongoing compliance.

01

The Form 1 application is for reservation or to change the name during LLP Company Registration In Mumbai

02

Form 2 is the incorporation documents and the statement of the subscribers

03

Form 3 gives information regarding the limited liability partnership agreement and the changes if any applicable

04

Form 4 is a notice of appointment, cessation or change in address, name or designation of the designated partner.

05

Form 5 is the notice for a name change

06

Form 6 is the statement of account and solvency for the LLPs that have a turnover of over five crores or a more than fifty lakh contribution.

07

Form 8 is a statement of a cost and solvency

08

The form 11 is the annual return of the limited liability partnership.

09

Form 15 is the notice for striking off the name of the LLP from the register of companies.

10

Form 17 is the application and statement for converting the firm to an LLP.

These files get filed electronically with the Registrar of Companies or RoC along with the required documents and the fee prescribed

Why Choose Us?

You should choose our LLP Company Registration services because of the benefits that we offer.

We offer professional service and have expertise in LLP registration procedures which offers you an error-free and smooth processing.

For LLP Company Registration we handle all the documentation, communication and filing with the regulatory authorities which saves you time and effort.

We offer compliance assurance ensuring that our process complies with all your legal regulations which reduces the risks of omission and errors.

We offer our valuable guidance on how to structure the LLP, choose the right partner and draft the LLP agreement.

We offer professional services to streamline the registration process which minimises delays and ensures timely completion.

When you trust our registration process you get peace of mind as our experts take care of everything. This lets you focus on your core activities.

We also offer post-registration support like compliance management, tax registration and ongoing advisory to let you navigate through the complexities of running the LLP.

When you choose our LLP companies registration services you are offered a hassle-free and efficient manner to establish your business with peace of mind and confidence.

Effortless LLP Registration Made Possible with Goyal Natiya & Associates

Our team at Goyal Natiya & Associates streamlines the entire LLP Company Registration process for you which includes from the documents to the filing stage. You are ensured of a seamless registration. We offer in-depth knowledge and personalised guidance. This lets you establish your LLP business hassle-free. We can handle compliance and offer valuable advice on how to structure the LLP. We also offer post-registration support letting you enjoy a worry-free experience.

You can thus trust Goyal Natiya & Associates to make the LLP registration journey efficient and smooth. You focus on ways to build your business and we will take care of the paperwork. If you wish for a stress-free path then establish your LLP with us.

FAQs

Yes, you will have to do LLP Company Registration on the MCA or the Ministry of Corporate portal. The LLP should obtain the registration under the LLP Act to be a valid legal entity.

The Memorandum of Association (MOA) and the Articles of Association (AOA) are important documents for a company that is registered in the Companies Act, 2013. The LLP agreement governs the LLP and thus does not have to draft either the MoA or the AoA.

There are no directors in the LLP. They also do not need a board of directors. The partners govern the LLP business. They take any decision regarding the working and the businesses of the LLP.

Any individual partner can be a designated partner in the LLP by consenting to it according to the LLP agreement. The corporate body cannot be the designated partner.

Any individual or body corporate can be an LLP partner. However, any minor or any person of an unsound mind cannot be a partner of an LLP.

There should be at least two designated partners in an LLP and one should be a resident of India.

If the number of LLP partners reduces to one then the single partner can carry the business for the LLP for six months. After that also if the LLP has only one partner, then the partner will be liable for the obligation of the LLP. The National Company Law Tribunal can also wind the LLP up if the number of partners stays below one for over six months.