What is a Limited Liability Partnership?
LLP full form: LLP stands for Limited Liability partnership. LLP is a mix of a traditional partnership, and a company as some of its features are similar to a traditional partnership and some matches with a company.
LLP Registration, a prime reason why it has evolved is that of its simplicity in a formation and easy maintenance. It helps owners also to limit their liabilities. This is the biggest advantage of the Limited Liability Partnership over a traditional Partnership Firm.
Incorporating an LLP company has both Limited Liability features of a Private Limited Company and the flexibility of a Partnership Firm. No partner is liable on account of unauthorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s misconduct. LLP form of organization is usually preferred by Professionals, Micro and Small businesses that are family owned or closely-held.
LLP registration procedure is the easiest and transparent process as it has a blend of the benefits of a Company and a Partnership Firm namely, limited liability feature of a Company and the flexibility of a Partnership Firm. Procedure of LLP registration is not lengthy as you can file your incorporation form online. Online LLP registration procedure will save you a lot of time and energy.
LLP registration process includes following steps:
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Obtain Digital Signature
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LLP Name Application through RUN-LLP
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Incorporation of LLP- Form FiLLiP- (Includes DIN Application)
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PAN and TAN Application
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File LLP Agreement
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Government Fees / Cost for LLP registration:
For registration of Limited Liability Partnership, government fees are as below. Note that there are additional costs such as DIN application fees, stamp duties, LLP form filing fees as well:
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Limited Liability Partnership whose contribution does not exceed Rs. 1 lakh Rs. 500/-.
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Limited Liability Partnership whose contribution exceeds Rs. 1 lakh but does not exceed Rs. 5 lakhs Rs. 2000/-.
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Limited Liability Partnership whose contribution exceeds Rs. 5 lakhs but does not exceed Rs. 10 lakhs Rs. 4000/-.
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Limited Liability Partnership whose contribution exceeds Rs. 10 lakh Rs. 5000/-.
However, it may vary according to the stamp duties of respective states.
Every LLP is required to have at least two Designated Partners who shall be individuals and at least one of them shall be a Resident of India. The mutual rights and duties of partners shall be governed by the agreement between LLP and the partners. This Agreement would be known as “LLP Agreement”.
Price and Plan
Price may varies for different states in India
ESSENTIAL
₹ 5999/-
(All Inclusive)
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2 Digital Signature Certificates
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2 Director Identification Numbers
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1 Name Approval Application
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LLP Incorporation Certificate
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LLP Agreement
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PAN
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TAN
ENHANCED
₹ 13999/-
(All Inclusive)
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2 Digital Signature Certificates
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2 Director Identification Numbers
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1 Name Approval Application
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LLP Incorporation Certificate
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PAN
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TAN
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SSI/MSME Registration
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Trademark(1 application 1 class) (start ups, proprietorship & small business)
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GST Registration
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LLP Agreement
ULTIMATE
₹ 20999/-
(All Inclusive)
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2 Digital Signature Certificates
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2 Director Identification Numbers
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1 Name Approval Application
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LLP Incorporation Certificate
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PAN
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TAN
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SSI/MSME Registration
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Trademark(1 application 1 class) (start ups, proprietorship & small business)
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1st Income Tax filing for non audit assessee
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1 Year TDS Filing upto 500 entries
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1st Annual Filing upto turnover of Rs. 40 Lakhs
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GST Registration
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LLP Agreement
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LLP Form 8 (Statement of account and solvency)
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LLP Form 11 (Annual Return)
Compliance required for LLP
GST Registration: Every LLP is required to get their GST registration. GST Registration Process is 100% online and there is no requirement of submission of physical documents to GST Department. GST registration must be obtained within 30 days of business incorporation, otherwise, the LLP will not be able to issue proper GST related invoices.
GST Return: Once a Limited Liability Partnership gets registered under GST It becomes necessary to file GST returns for LLPs. As filing of GST returns is mandatory for all the registered Taxpayers including LLPs. GST returns can be filed monthly, quarterly or yearly depending upon the types of GST returns form you are filing.
Accounting: Every LLP shall maintain and keep the accounting records which sufficient to show and explain the transaction of an LLP and which discloses with reasonable accuracy the financial position of the LLP. The books of account are required to be kept and maintained at the registered office of the LLP for the period of 8 years.
ROC annual filing: LLPs are required to file ROC Form 8 before 30th October every year. Form 8 contains details of the Statement of Accounts and solvency. Also, LLPs are required to file ROC Form 11 before 30th May every year. Form 11 contains details of all the Designated Partners like whether there are any changes in the management of the LLP.
Audit under IT ACT: Every Limited Liability Partnership whose turnover exceeds INR 2 Cr. In case of a business or INR 50 Lakh in case of a profession, is required to get its books of accounts tax audited under section 44AB of the Income-tax Act. Such tax audit under section 44AB will have to be completed and filed by 30th September.
IT Returns: Every Limited Liability Partnership has to file the Income Tax Returns every year, irrespective of its transactions. It must be filed by LLP on or before 31st July (if not covered under audit) or 30th September (if covered under audit). Income tax returns for Limited Liability Partnership have to be filed under ITR 5.
MAT Audit for LLPs: It is mandatory for the LLPs to get their accounts audited under MAT i.e. Minimum Alternate Tax. A report in form 29b is to be issued by a Practicing Chartered Accountant which certifies that MAT has been computed according to Income Tax Act, 1961. The book profit of a company is the accounting profit arrived at after making the specified additions and deductions.
TM Registration: For an LLPs, Trademarks are necessary not mandatory though. The protection of the LLP’s name is limited to the extent that another LLP will not be registered with the same or a closely-resembling name. If you hold a unique brand name it is always advised to get a trademark registered as it is necessary to get protection under different classes of Trademark.
Form 3 CEB for LLP: For LLPs which have entered into any international transactions with associated enterprises or have undertaken specified Domestic Transactions, need to file Form 3CEB. This form should be certified by a practicing Chartered Accountant. Limited Liability Partnerships which are required to file this Form can do their tax filing by the 30th of November.
Documents Required for Limited Liability Partnership
Quick Checklist
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Photograph of all the Directors and Shareholders
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PAN Card of all the Directors and Shareholders
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ID Proof of all the Directors and Shareholders (Driving License/Passport/Voter ID)
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Address Proof of all Directors and Shareholders (Latest Bank Statement / Electricity bill / Mobile bill / Telephone bill
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Electricity Bill or any other utility bill for the address proof of the Registered Office
Specific Requirements
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An Limited Liability Partnership must have a registered office in India. Documents like bank statement or electricity bill should not be older than 2 months. Along with that utility bill, rent agreement or sale deed and a No Objection Letter (NOC) from the landlord with his/her consent to use the office as a registered office of an LLP must be submitted.
How to Incorporate Limited Liability Partnership
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Obtain DSC
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Reserve Your Company Name
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Submission of MOA & AOA
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Get Incorporation Certificate
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Get Company’s PAN & TAN