LLP Registration With LegalBharatServices

Limited Liability Partnership Registration Online – An Overview

Limited Liability Partnership (LLP) combines the benefits of a partnership with that of a limited liability company. In India, it took shape after January 2009 and was an instant success with startups and professional services. The idea behind LLP was to provide a form of business that is easy to maintain and benefits owners with limited liability.

Benefits of a Limited Liability Partnership

Here are four major reasons why people tend to choose LLP as their business model:

• Limited Liability: Partners' liability is limited to their agreed contribution. In case of bankruptcy, personal assets are not at risk, unlike in proprietorships and partnerships, where personal assets can be seized.

• Separate Legal Entity: An LLP is a separate legal entity from its partners, ensuring continuous existence even if partners leave. Dissolution requires mutual agreement.

• Flexible Agreement: Ownership transfer is easy, and new partners can be inducted as designated partners, allowing flexible management.

• Suitable for Small Business: LLPs with capital under ?25 lakhs and turnover below ?40 lakhs are not required to undergo formal audits, making it ideal for small businesses and startups.

How to Register an LLP Online with the US

You can register LLP online through Legal Bharat Services. While we make LLP registration a simple 3-step process for you, the actual registration process is elaborate and is explained below for your knowledge:

• Obtain DSC and DIN: The first step is acquiring Digital Signature Certificates (DSC) and Director Identification Numbers (DIN) for 2 partners. We handle the filing on your behalf.

• Name Approval: We check the availability of your preferred LLP name and reserve it. The name will be approved by the registrar if it's not deemed undesirable and doesn't conflict with existing businesses or trademarks.

• Draft LLP Agreement: We carefully draft the LLP agreement, outlining the rights and duties of the partners. This agreement is filed within 30 days of incorporation.

• LLP Incorporation Certificate: After filing the necessary forms and documents, we receive the LLP incorporation certificate from the registrar, allowing you to start your business.

• Apply for PAN, TAN, & Bank Account: Once incorporated, we apply for your PAN, TAN, and open a bank account for your LLP.

Types of LLP Agreements

        The following are the main types of LLP agreements.

• Equal Rights LLP: All partners share equal profit/loss, contribute equally in capital, time, and energy, and have the same rights in management.

• Differential Rights LLP: Partners have unequal contributions in capital, time, and energy, and they have different profit-sharing, decision-making, and managerial rights.

• Board Managed LLP: Management is handled by a board of partners who have decision-making authority and operational control.

• Husband & Wife LLP: A special agreement is made to minimize family tax liability, and they can choose any LLP structure that suits them.

• Differential Rights and Powers LLP: Partners have different rights and responsibilities, such as some investing while others manage operations. Rights and powers must be clearly defined to avoid conflicts.

• Absolute Rights LLP: With only two partners, one is appointed as the nominee or investor, while the other has full decision-making and management control.

• Manager Managed LLP: Partners appoint a manager to handle daily operations and decision-making, while partners act as investors with no management involvement.

Documents required for registering LLP in India

Documents of both partners, as well as the partnership firm, have to be submitted for registering the LLP.

Documents of Partners

• ID Proof of Partners: All partners must provide their PAN card, which acts as primary ID proof.

• Address Proof of Partners: Partners can submit any one of the following: Voter’s ID, Passport, Driver’s License, or Aadhar Card. The name and details on the address proof and PAN card must match exactly.

• Residence Proof of Partners: Submit a recent bank statement, telephone, mobile, electricity, or gas bill (not older than 2 months) showing the partner's name as per the PAN card.

• Photograph: Passport-size photograph of each partner, preferably on a white background.

• Passport (for Foreign Nationals/NRIs): Foreign nationals or NRIs must submit a notarized or apostilled passport and address proof (e.g., driving license, bank statement). If documents are not in English, a notarized translation copy must also be provided.

• Documents of LLP:

  • Proof of Registered Office Address: Submit a rent agreement (if applicable) and a no-objection certificate from the landlord, along with a utility bill (gas, electricity, or telephone) within 30 days of incorporation.

• Digital Signature: One designated partner must obtain a digital signature certificate for signing all documents and applications digitally.