Limited Liability Partnership (LLP) Registration in Bangalore
Limited Liability Partnership (LLP) Registration in Bangalore
LLP is now the most preferred legal entity for Professionals and service providers owing to the flexibility it provides. It provides a combination of ‘Partnership’ and ‘Limited Company’ business structures.
In a Limited Liability Partnership (LLP), two or more partners form a partnership that gives the benefits of limited liability of a company and the flexibility(in terms of management & ownership) of a partnership. There should be a minimum of 2 designated partners for a LLP formation and they should obtain the Director Identification Number and Digital Signature for registration of the LLP. It is registered as per the compliance and regulatory guidelines of the Ministry of Corporate Affairs (MCA).
Limited Liability Partnership (LLP) Registration
Limited Liability Partnership
(LLP) has become a preferred form of organization among entrepreneurs
as it incorporates the benefits of both partnership firm and company
into a single form of organisation.
Among the partners, there should be a minimum of two designated
partners who shall be individuals, and at least one of them should be
resident in India. The rights and duties of designated partners are
governed by the LLP agreement. They are directly responsible for the
compliance of all the provisions of the LLP Act, 2008 and provisions
specified in the LLP agreement.
The
concept of the Limited Liability Partnership (LLP) was introduced in
India in 2008. An LLP has the characteristics of both the partnership
firm and company. The Limited liability Partnership Act, 2008 regulates
the LLP in India. Minimum two partners are required to incorporate an
LLP. However, there is no upper limit on the maximum number of partners
of an LLP.
Among the partners, there should be a minimum
of two designated partners who shall be individuals, and at least one of
them should be resident in India. The rights and duties of designated
partners are governed by the LLP agreement. They are directly
responsible for the compliance of all the provisions of the LLP Act,
2008 and provisions specified in the LLP agreement.
Minimum criteria for an LLP registration Services in Bangalore
Minimum of 2 partners
LLP can start its business immediately after the issue of Certificate of Incorporation.
Registered office in India.
At least one designated partner as an Indian resident in case of involvement of foreign nationals.
DPIN (Designated Partner Identification Number) for all partners.
Self Attested PAN, Aadhar & Passport size photo of all the Stakeholders.
Apostilled Passport, Mobile Bill and other KYC docs in case of NRI Stakeholder.
Specimen Signatures of all Stakeholders.
Few Proposed Business Names along with Objects.
Latest Electricity Bill/Landline Bill of Registered Office.
NOC from owner of registered office. (If Owned)
Rent Agreement from Landlord. (If Rented/Leased)
Brief description of main business activities of the proposed Company.
Shareholding pattern (50:50 or 60:40) between the Stakeholders.
Total Capital Contribution of the Company.
Characteristics of a Limited Liability Partnership
LLP is governed by the Limited Liability Partnership Act 2008, which
has come into force with effect from April 1, 2009. The Indian
Partnership Act, 1932 is not applicable to LLP.
LLP is a body incorporate and a legal
entity separate from its partners having perpetual succession, can own
assets in its name, sue and be sued.
The partners have the right to manage the business directly, unlike corporate shareholders.
One partner is not responsible or liable for another partner’s, misconduct or negligence.
Minimum of 2 partners and no maximum limit.
Should be ‘for profit’ business.
The rights and duties of partners in an LLP, will be governed by the
agreement between partners and the partners have the flexibility to
devise the agreement as per their choice. The duties and obligations of
Designated Partners shall be as provided in the law.
Limited
liability of the partners to the extent of their contributions in the
LLP. No exposure of personal assets of the partner, except in cases of
fraud.
LLP shall maintain annual accounts. However, audit of
the accounts is required only if the contribution exceeds Rs. 25 lakh or
annual turnover exceeds Rs. 40 lakh. A statement of accounts and
solvency shall be filed by every LLP with the Registrar of Companies
(ROC) every year.
Benefits on an LLP registration in Bangalore
No Minimum Investment : There is no requirement of minimum capital investment while registering under LLP. The partners’ investment may also not be in monetary form and they can invest in the LLP their movable, immovable, tangible or intangible property.
Easier ROC Annual Compliances : The ROC annual compliances of an LLP are simple and do not mandatorily require an audit of accounts. A Limited Liability Partnership is required to get a Tax Audit only for the following cases:
The annual turnover of the LLP is more than INR 40 lakhs
The total contribution of the Limited Liability Partnership is more than INR 25 lakhs.
Easier Taxation Compliances : LLP is not liable to file ITR returns and the share of the designated partners is not subjected to tax. The other tax benefits applicable to an LLP in India are as follows:
No Dividend Distribution Tax.
No Deemed Dividend.
Deductions allowed to an LLP in form of the Interest to partners, salaries paid, commission paid, bonus paid, and remuneration paid.
Relaxed statutory compliances : Entrepreneurs form LLP’s often make use of relaxed statutory compliances.
Easy And Affordable LLP Registration : The LLP registration online process is easier as compared to a company incorporation process as the formalities are straightforward and can be completed in 10-15 days.
Process to be followed for Limited Liability Partnership Registration
The following steps are llp incorporation procedure :
RUN – LLP (Reserve Unique Name-Limited Liability Partnership
Form for reserving a name for the LLP
FiLLiP
Form for incorporation of LLP
Form 5
Notice for change of name
Form 17
Application and statement for the conversion of a firm into LLP
Form 18
Application and Statement for conversion of a private company/unlisted public company into LLP
Time required for LLP registration in Bangalore
The LLP registration procedure approximately takes 12-15 working days, depending on the replies from ROC department to complete Limited Liability Partnership Registration procedure in Bangalore.
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