Asktrix

Complete Guide to LLP Registration in India with Asktrix

A Limited Liability Partnership (LLP) combines the benefits of both a registered company and a partnership firm. It offers partners the flexibility of a partnership while providing limited liability protection. At Asktrix, we provide comprehensive LLP registration services with expert guidance throughout the entire process.

What is an LLP?

A Limited Liability Partnership (LLP) is a hybrid business structure that combines the benefits of a partnership firm with the limited liability protection of a company. It allows partners to manage the business directly while protecting their personal assets from business liabilities.

LLPs are governed by the Limited Liability Partnership Act, 2008, and are ideal for professionals, consultants, and service-based businesses looking for operational flexibility with liability protection.

Why Choose Asktrix for LLP Registration?

  • Dedicated Support from Start to Finish: Our team provides personalized assistance throughout the entire registration process
  • Expert Compliance Assistance: We ensure all legal requirements are met and maintain ongoing compliance support
  • Affordable and Transparent Fees: Clear pricing with no hidden charges
  • Ongoing Compliance Support: Continuous assistance with annual filings and regulatory requirements

Key Features of an LLP

  • Separate Legal Entity: LLP has its own legal identity distinct from its partners
  • No Minimum Capital Requirement: Can be formed with any amount of capital
  • Flexible Internal Structure: Partners can decide their roles and responsibilities through LLP agreement
  • Perpetual Succession: LLP continues to exist regardless of changes in partnership
  • Limited Liability: Partners' liability is limited to their agreed contribution

Types of LLPs

  • Ordinary LLP: General business activities and commercial operations
  • Professional LLP: For professionals like lawyers, chartered accountants, architects
  • Family LLP: For family-owned businesses seeking limited liability protection
  • Investment LLP: For investment and financial services
  • Financial LLP: For financial services and advisory businesses

Documents Required for LLP Registration

The following documents are essential for LLP registration:

  • Partner Identification Documents: PAN card, Aadhaar card, and passport-sized photographs
  • Address Proof of Partners: Utility bills, bank statements, or rental agreements
  • Business Address Proof: NOC from property owner and utility bills for registered office
  • NOC from Property Owner: No Objection Certificate for the registered office
  • Digital Signature Certificate (DSC): Required for online filing of documents

Eligibility Criteria for LLP Registration

To register an LLP, the following criteria must be met:

  • Minimum Partners: At least 2 partners required
  • One Indian Resident Partner: At least one partner must be resident of India
  • Digital Signature: At least one designated partner must have DSC
  • Unique Name: LLP name must be unique and not similar to existing entities
  • Registered Office: Must have a registered office address in India

Step by Step LLP Registration Process with Asktrix

Our streamlined process ensures quick and hassle-free LLP registration:

1

Digital Signature Certificate (DSC)

Obtain DSC for designated partners to enable online document signing and filing.

2

Director Identification Number (DIN)

Apply for DIN for all designated partners through Form DIR-3.

3

Name Approval Application

Submit LLP name for approval through RUN-LLP service.

4

LLP Agreement Drafting

Prepare LLP agreement defining partners' rights, duties, and profit-sharing ratio.

5

Incorporation Form Submission

Submit FiLLiP form with all required documents and information.

6

Certificate of Incorporation

Receive Certificate of Incorporation and commence business operations.

7

LLP Agreement Filing

File LLP agreement with Registrar within 30 days of incorporation.

Rules and Regulations for LLPs

LLPs must comply with various regulations under the Limited Liability Partnership Act, 2008:

  • Annual Return Filing: File annual return within 60 days of financial year end
  • Annual Compliance: Maintain proper books of accounts and file annual statements
  • Statement of Accounts & Solvency: File statement of accounts and solvency annually
  • Change Notification: Notify Registrar about changes in partners, registered office, etc.
  • Income Tax Filing: Comply with income tax regulations and file returns

Compliance Requirements After LLP Registration

Post-registration, LLPs must fulfill various compliance obligations:

  • Annual Return Filing: File annual return within 60 days of financial year end
  • Maintenance of Books of Accounts: Maintain proper accounting records
  • Statement of Accounts & Solvency: File annual statement of accounts and solvency
  • Income Tax Return: File income tax returns annually
  • Maintenance of Financial Records: Keep financial records for at least 8 years

Benefits and Government Schemes for LLPs

  • Limited Liability Protection: Partners' personal assets are protected from business liabilities
  • Simpler Compliance Requirements: Less complex compliance compared to companies
  • Perpetual Succession: LLP continues to exist regardless of partner changes
  • Eligibility for Government Schemes: Access to various government incentives and schemes
  • Tax Benefits: Lower tax rates compared to companies in certain cases
FAQ

Frequently Asked Questions

Find answers to common questions about LLP registration in India.

What is the minimum number of partners required for an LLP?

An LLP requires a minimum of 2 partners and can have unlimited partners. At least one partner must be a resident of India.

Can an LLP be converted into a private limited company?

Yes, an LLP can be converted into a private limited company by following the prescribed procedure under the Companies Act, 2013.

What is the difference between an LLP and a partnership firm?

LLP provides limited liability protection to partners, while in a partnership firm, partners have unlimited liability. LLP also has separate legal entity status.

Is there a minimum capital requirement for an LLP?

No, there is no minimum capital requirement for LLPs. Partners can contribute any amount as per their agreement.

Can foreign nationals be partners in an LLP?

Yes, foreign nationals can be partners in an LLP, but at least one partner must be a resident of India.

What taxes are applicable to LLPs?

LLPs are subject to income tax at 30% (plus surcharge and cess), GST (if applicable), TDS, and other statutory taxes based on their business activities.

How long does LLP registration take?

With Asktrix, LLP registration typically takes 10-15 working days, depending on document verification and government processing time.

Can an LLP raise funds from investors?

Yes, LLPs can raise funds from investors, but they cannot issue shares like companies. Funding is typically through capital contributions or loans.

What is the validity of a Digital Signature Certificate?

Digital Signature Certificates are typically valid for 1-2 years and need to be renewed before expiry to continue online filing activities.

Is audit mandatory for LLPs?

Audit is mandatory for LLPs with turnover exceeding ₹40 lakhs or contribution exceeding ₹25 lakhs in any financial year.

Starting your LLP with Asktrix provides not only legal registration but also ongoing support for compliance and growth. Explore a smooth path to business success and secure your partnership's future with Asktrix professional guidance and support. For new clients tax saving guidance will come at free of cost. For more details fill the form and get the benefits

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