What Is LLP Registration?
LLP Stands for Limited Liability Partnership. For LLP Registration a minimum of two partners, who shall be individuals, are required to incorporate an LLP firm; and, at least one of them should be resident in India. However, an LLP can have any number of partners as there is no limit on the maximum number of partners of an LLP can have in the LLP Act of 2008. Looking for LLP Registration Services in India then get in touch with our LLP Registration Consultants today.
LLP or the term Limited Liability Partnership Act, 2008 defines and regulates the LLP in Indian states that An LLP registration imparts the characteristics of both the partnership firm and company to a business registered as an LLP.
Furthermore, The LLP agreement created and complying with LLP Act norms govern the duties and rights of partners of an LLP. Every partner of an LLP is directly responsible for the compliance of:
- All the provisions of the LLP Act, 2008
- All the provisions of the LLP agreement.
LLP Registration in India: A New Business Registration Trend Between Entrepreneurs
LLP registration in India has become one of the popular options for business registration that young-age entrepreneurs like the most. Because LLP offers the advantages of a Private Limited Company and the flexibility of a Partnership firm into a single corporate entity. So don’t wait. Register your LLP form today with LegalHubIndia and get all necessary LLP consultations for free.
What Is the Difference Between A Partnership Firm And LLP?
For instance, here are 3 aspects in which a limited liability partnership (LLP) and a partnership firm are distinguished from one another in business.
Limited Liability Partnership
An LLP is registered Under the LLP Act 2008
|A Partnership Firm is registered under the Partnership Act, 1932.|
In An LLP, the liability of each partner is limited to the contribution made by the partner in the LLP
|In a Partnership Firm, all partners bear the brunt of the losses/debts of the firm.|
|An LLP holds the status of a Separate Legal Entity. This implies that:|
· An LLP can buy a property in its name.
· An LLP can sue anyone and be sued in its name.
|A Partnership Firm cannot act as a Separate Legal Entity. This implies that:|
· A Partnership firm cannot buy a property in its name.
· A Partnership Firm cannot sue anyone in the firm’s name. While suing, it has to be in the name of the authorized partner of the partnership firm.
Why Do Business Owners Prefer LLP Registration Over Partnership Registration?
- Separate Legal Entity Status of LLP Registration
LLP incorporation gives the business the status of a Separate Legal Entity. As a holder of this status, An LLP becomes eligible to buy any property in its name. A partnership registration does not provide this status to the business and hence keeps the business deprived of its benefits. Get all necessary consultations before you go with LLP firm registration. Contact us!
- Limited Liability aspect of LLP Registration
With the LLP registration, the partners of the business ensure that they will not bear the brunt of the losses/debts that are not originated from their actions. A partner of an LLP will only be held liable for her/his contribution.
- No requirement for minimum capital for LLP registration
In LLP, there is no minimum capital requirement. An LLP may be founded with as little capital as feasible. Additionally, a partner’s contribution to an LLP may take the form of tangible, moveable, immovable, intangible, or other types of property or benefits. It is the high time for LLP firm registration. Contact our LLP registration consultant and get your company listed today.
- Freedom to Have as Many Partners with LLP Registration
An LLP needs a minimum of two members and has no maximum partner limit. In contrast, a private limited company cannot have more than 200 members.
What are the Features of LLP Registration of a Business in India?
- LLP Registration Provides The Status Of a Separate Legal Entity To The Registered Business.
The LLP is separate from its members. An LLP has the legal right to bring and defend claims in its own name. The contracts are signed in the name of the LLP, which aids in gaining the confidence of numerous stakeholders and offers consumers and vendors confidence in the organization.
- Liability as Per the Contribution in the LLP Registered Business.
It is clear from the name “Limited Liability Partnership” that the partners’ liability will be limited to their contributions. This implies that individuals are solely responsible for their own contributions and are not personally accountable for any corporate losses.
If an LLP becomes bankrupt at the moment of dissolution, only its assets are responsible for paying off its obligations. Since the partners have no personal responsibilities, they are free to do business as legitimate individuals.
- Low Cost of LLP Registration
Compared to the expense of registering a private limited company, the cost of registering a limited liability partnership is cheap.
- Fewer Regulations and Compliance Obligations
An LLP is Required to Submit Just Two Documents Annually, Which are the Following:
- An Annual Return
- A Statement of Accounts and Solvency.
- The flexibility of an LLP Agreement
The ownership transfer of an LLP is also straightforward. It’s easy to make someone a designated partner, and then the ownership is granted to them.
LLP Registration — The most suitable form of business registration for MSMEs
LLPs with less than 25 lakhs in capital and less than 40 lakhs in annual revenue do not need formal audits. Consequently, registering as an LLP is advantageous for small firms and startups.
Eligibility Criteria for LLP Registration
To be eligible for LLP registration, the following criteria should be met:
- A company in India should have at least two partners to form an LLP. Moreover, keep in mind that there is no upper limit on the number of partners that an LLP can have. Also, at least one of the people who are named as partners in an LLP should be an Indian resident.
- If there is a corporate body among the partners should have a nominated natural person to represent it.
- Each partner must contribute an agreed-upon amount to the pooled capital.
- For LLP registration, a company must have a minimum authorized capital of 10,000 Indian rupees.
Can an LLP be registered under MSME?
The Government of India registers all the Micro Small and Medium enterprises, popularly known as MSMEs, under the Ministry of MSME through a recently introduced online registration process called Udyam Registration.
In its notification for the launch of the Udyam registration portal, the Indian Government notified all the then existing enterprises registered under EM–Part-II or UAM (Udyog Aadhaar/MSME) to register again on the Udyam registration portal. So, using this notification as a credible source, it can be said confidently that any Limited Liability Partnership can be registered under MSME through Udyam Registration.
Udyam Registration of an LLP should be done via the Udyam Registration portal, which is a single-window portal where the business will have to make a self-declaration about its transformation into an MSME.
If you are looking for affordable LLP registration services that can register your LLP as an MSME on your behalf, then reach us today at +91 96460-01340. We offer a range of LLP registration services that are easy on your wallet. Our legal expert will help you figure out what kind of LLP registration service will work best for you.
Is LLP Registration suitable for startups in India?
An LLP is one of the best vehicles for any startup business because it provides your company with the benefits of limited liability of a company and the flexibility of a partnership. Even if some of the partners change during the course of time, the LLP can still exist. It is able to sign contracts and own property in its own name. The LLP is a separate legal entity that is responsible for all of its assets. The partners, on the other hand, are only responsible for what they agreed to put into the LLP.
Any Startup’s LLP Registration Process:
First of all, the applicant should have a digital signature certificate (DSC), and if he or she has that, the applicant would have to get his or her Director Identification Number (DIN). After taking the DIN, the “Reserve your Unique Name” service should be used to approve your startup’s name.
After this, the task of incorporating your startup as an LLP remains. For this, the applicant would have to just file the Limited Liability Partnership Agreement.
Benefits of LLP Registration for a Startups
- An LLP has fewer formalities, making it easier to start and operate.
- An LLP registration is cheaper than company registration, making it a better business registration choice for ventures that do not have much bling in their coffers.
- Separate Legal Entity Status of an LLP
- There is no minimum capital requirement for an LLP registration. An LLP can be started with any amount of capital, making it a suitable vehicle for any startup.
- Each partner would be held accountable for his contribution to the LLP.
- A compulsory audit is not required. What more could a startup ask for?
If you are willing to do LLP Registration of your Startup venture and do not have to handle all the hassles of the registration process, but you also desire error-free LLP Registration of your Startup in a manner that enables you to get the most out of LLP Registration, then you don’t have to look any further. We can do this on your behalf in the best possible way at a price that is both reasonable and affordable. Moreover, if you have any doubts regarding this Registration process, get a Free Consultation from one of our experts and make an informed and profitable decision for your business.
Why Should You Pick Legal Hub India for Assistance with LLP Registration?
Our LLP registration services include everything you require to prepare it for your business. Our experts know the rules and have helped businesses just like yours get their LLP registration in India.
Through a straightforward and user-friendly personalized dashboard, you can complete all the steps required to register your LLP. It is entirely online. In 10–15 days, you’ll receive your LLP incorporation certificate. If you have any queries then you may get a free consultation from our support staff regarding LLP Registration in India.
Grant Limited Liability to Owners
The advantages of a partnership and a limited liability corporation are combined in a limited liability partnership (LLP). It began to take shape in India after January 2009 and became an instant hit with new businesses and professional services. The LLP was created with the intention of giving owners limited liability and an easy-to-maintain company structure.
Mandatories for LLP Registration
- Minimum Two Partners for an LLP
Your Limited Liability Partnership (LLP) must be registered with a minimum of two individuals who will serve as the new LLP’s first authorized partners. The maximum number of partners in the LLP is unrestricted, nevertheless.
- A Single Designated Resident Partner
A Designated Partner of the LLP must have Indian residency. A person is considered to live in India if they spent more than 120 days there in the last fiscal year.
- Proof of Registered Address
The LLP registration needs a registered address in order to be incorporated, and we need verification of that address in the form of a utility bill that is no more than two months old and a NOC from the registered address owner.
The LLP Act of 2008 doesn’t say anything about a minimum or maximum amount of capital. This means that you can keep the capital/contribution of the LLP at a level that meets the needs of the business.
- Name of the Proposed LLP: New & Unique
You must make sure that the proposed name of the LLP is distinct, legal, and does not sound like any LLPs, companies, or trademarks that are currently in existence. Please get in touch with us if you need assistance; we can advise you on the name of your LLP registration.