Easy Process & Transparent Fee
Register your new startup as Limited Liability Partnership (LLP) with 2 DSC & DIN Name Approval COI Drafting of LLP Agreement, PAN TAN & Bank A/c opening support. 100% Online Process of placing order and document submission, Chat with the startup specialist to get started
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Checklist for LLP Registration
1
Minimum Two Partner of LLP: Register your Limited Liability Partnership (LLP) with a minimum of two persons to act as the initial designated partner in the new LLP. However, there is no cap on the maximum number of partners in the LLP.
2
One Resident Designated Partner: One of the Designated Partners of the LLP should be a resident in India. A Person is considered a resident when he or she stays in India for over 120 days during the previous financial year
3
Registered Address Proof: The LLP needs an address for its incorporation; we require proof of the registered address in the form of a utility bill not older than two months and the NOC from the owner of the registered address owner.
4
Capital Requirement: The LLP Act, 2008 does not prescribe any minimum or maximum capital as such; hence you may keep the capital/contribution of the LLP as per the business requirement of the LLP.
5
New & Unique Name of the Proposed LLP: The name of the proposed new LLP must be unique and eligible, and you have to ensure that the proposed name of the LLP is not the same or similar to an already existing LLP, Company or Trademark. If you need help, please contact us; we would help you decide your LLP’s name.
List of Documents Required For LLP Registration
Good documentation for the registration of an LLP plays a vital role & results in faster incorporation of the Limited Liability Partnership Firm. Here is the list of documents required; please submit self-attested copies of clear and valid documents.
| Legal Drafts |
| Consent of Partners in Form-9Subscriber Sheet for LLP IncorporationPAN Card Application FormTAN Card Application FormQuestionnaire for LLP Registration |
Note: After the incorporation, the ROC issues a Certificate of Incorporation that contains the company’s address, similar to that is available on the proof submitted for the registered address. Please ensure that the address of the premises on the NOC matches with the address on the utility Bill.
Process of LLP Registration
The LLP is a new business type where two or more persons incorporate a business with the simplicity of partnership firm and advantages of an incorporated entity such as a company. After placing the online order for LLP Incorporation, submit necessary information and documents to us through an Online Questionnaire developed by us.
· Documents & Information For LLP Registration
LLP registration procedure starts with doc. of the proposed designated partners /partners and relating to the registered address of the LLP. Ensure that the documents are updated and correct.
· Selection of Name for LLP
The Name of the LLP should be cross-checked with the ROC and the trademark registry to avoid any infringement of someone else Trademark or Other Company /LLP Name.
· Making of Partners DSC
DSC is equivalent to the physical or paper signature under the information technology act. For LLP registration, all the applications to ROC are filed in digital format signed by designated partners of the LLP. The filing process starts with the issue of a digital signature for all the partners of the LLP.
· Name Approval for LLP Registration
The application for the Name approval of LLP is submitted in FormForm RUN-LLP. It is a web-based application, where two names in order of preference can be filed with a note on the significance of the Name and the business activities.
· ROC Filing for LLP Incorporation
The application of New LLP Registration is filed in FILIP Form immediately after name approval. The partners KYC documents and proof of the registered address are submitted along with the application form. The FormForm, FILIP, is attested by a practising Chartered Accountant, Company Secretary, Cost Accountant, or an Advocate practising at High Court. The government filing fee for the registration of depends on the proposed capital/contribution of the LLP.
· Issue of the Certificate of Incorporation of LLP
The LLP registration’s final stage is the Certificate of Incorporation for the LLP after the verification of the application for LLP Registration is filed in FormForm FILIP. The issuance of the registration certificate of LLP is conclusive proof of the LLP registration by ROC.
· Drafting of LLP Agreement and Filing to ROC
Post-registration of the LLP, the partners need to enter into a valid agreement on stamp paper of appropriate value as per respective state. The LLP agreement defines the mutual rights and duties of the partners, and the LLP Agreement should be signed before a notary public. The duly signed & Notary Attested LLP Agreement is then filed with ROC in Form -3 within 30 days of the LLP Incorporation.
· PAN Card & TAN Number for the LLP
The LLP needs to apply in the prescribed Form 49A to the income tax department for the allotment of PAN; the acknowledgement of the pan application for the LLP is received on the same day. However, the pan is allotted within a week. TAN number is a permanent number assigned to business for complying with withholding tax provisions (TDS). You are required to deduct TDS while making payments; hence, the next step is to obtain a TAN number, which is mandatory to submit TDS Returns.
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Benefits of the LLP Registration
Easy to form
Forming LLP is an easy process. It is less complicated and time-consuming unlike the process of formation of a company. We help startups to start their LLP in 100% online mode to avoid unnecessary delay.
Limited Liability
The partners of the LLP have limited liability which means partners are not liable to pay the debts of the LLP from their assets. No partner is responsible for any other partner’s misconduct.
Perpetual Succession
The LLP Being a separate legal person, its life or existance is is independent of the partner’s death, retirement, or insolvency. The LLP will get wound up only as per provisions of the LLP Act.
Easy Restructuring
The relationship between the partners is governed by an LLP Agreement, which can be easily amended to introduce or retire a partner. The process is easy and straight forward.
No Compulsory Audit
Under the LLP Act, the statutory audit is not mandatory for small LLP. However, the statutory audit by a CA becomes compulsory only when the annual turnover and the LLP cross Rs 40 Lakh or the LLP Capital is more than 25 Lakh.
Fewer Compliance
The compliance requirement for an LLP is fewer in comparison to a company. Also, the annual return filing is easy and cost-effective. The LLP has to file its ITR just like any other business and file ROC Annual Returns.
Difference Between LLP & Company for Startups
| Points | LLP | Private Limited |
| Registration | The registration of an LLP is mandatory under the Limited Liability Partnership Act, 2008. The process of the formation of the LLP is simple and easy. The LLP comes into existence only when the Registrar of Companies issues a Certificate of Incorporation. | A company being a separate legal entity is a creation of law and is incorporated under section 3 of the Companies Act, 2013. The process of company incorporation is entirely online, and not a single paper is filed physically. The company comes into existence with the issue of the Certificate of Incorporation by the ROC. |
| Number of Promoters | The LLP Act requires a minimum of two partners, and there is no cap on the maximum number of partners that an LLP may have. Two designated partners are also required to ensure compliance. The same person may be a partner as well as a designated partner. | In the case of a Private Limited Company, a minimum of two persons are required to become shareholder and directors of the company. The same person can act as a director as well as a shareholder. However, the maximum number of shareholders has been capped at 200, and the number of directors can not be more than 15. |
| Constitution Document | In the case of LLP, the LLP agreement is the constitution document. Similar to a partnership deed, it is also prepared on a stamp paper of appropriate value. The LLP Agreement is required to be filed with the ROC in form 3 within a period of 30 days from the date of incorporation of the LLP. | In the company’s case, the Memorandum of Association and the Articles of the Association are the constitution documents. The MOA primarily contains the name, location, object, capital and liability clause, whereas the AOA is a compendium of internal rules to run the company. |
| Liability To Owners | The LLP is a separate legal entity in the eyes of the law; the losses or debt of the LLP is not the personal responsibility of the partners. However, the partners are liable to pay the agreed amount of capital. | The company is a juristic person, and shareholders are only responsible for contributing the agreed amount of share capital as per the subscription in the MOA or on the unpaid share of any fresh allotment of shares by the company. |
| Internal Rules | The LLP agreement governs the internal rules and regulations of LLP. To change the rules, partners must prepare a supplementary agreement and file the same before the ROC in Form-3. | The articles of association of a company contain the internal rules and regulations of the companies. The courts always uphold the provisions of the AOA that conform to the act. |
| Decision Making | In the case of the LLP, decisions are generally taken by way of the meetings between the partners. However, there is no provision of the meetings in the LLP Act. All other partners can not be held responsible for the individual decisions in the case of LLP. | The board of directors takes the decisions in a company in their meetings known as the Board Meeting. As per the Companies Act, a company must convene a Board Meeting every quarter and the gap between two meetings should not be more than three months. |
| Remuneration | There are no provisions in the LLP Act, 2008 regulating the remuneration payable to designated partners. However, the LLP Agreement should have a specific clause allowing the payment. The limits of Income Tax Shall apply akin to a partnership firm. | The Companies Act, 2013 regulates the managerial remuneration in the case of the companies. However, there is no limit or restriction under the Income Tax Act as it is in the case of LLP and the Firm. |
| Audit | The audit of the LLP is not compulsory if the capital contributed does not exceed Rs 25 Lakh or if the turnover does not exceed Rs. 40 Lakhs. | The Statutory Audit of the company is compulsory. |
| Income Tax Rate | The LLP is treated at par with the partnership firm; 30% is the Income Tax Rate for the LLP. The Surcharge & Cess is levied on and above the Income Tax. | The Income Tax Rate for the company varies from case to case. For instance, it is just 15% in the case of the new manufacturing company and 22% for others. Surcharge and cess are also applicable. |
| Annual Compliance | The LLP need to file Form 11 and Form 8 to the ROC, also known as annual compliance, apart from the filing of ITR. | The Company has to file an elaborate, annual return, submit the Balance Sheet, Audit Report and the Director’s Report to the ROC. The ITR filing and Audit is applicable. |
| Closure | The LLP can be wound up by the process prescribed under the LLP Act, 2008. For closure of inactive LLP, after paying all the liabilities, a statement of assets and liabilities are filed in Form 24 to the roc for closure. | The Company is a creation of the law that can be closed only by following the companies’ rules. The form STK-2 is filed to the ROC for closing an inactive company. |
Taxation of Limited Liability Partnership
The LLP is considered a Partnership Firm for the Income Tax Act; all the provisions applicable to the partnership firm also applies to the LLP. Following are the important tax considerations in the case of LLP
Income Tax
| S.No | Particulars | Rate |
| 1 | Income Tax | 30% on the profits of LLP |
| 2 | Surcharge | 12% on the Income Tax, if the taxable income is more than one crores. |
| 3 | Health & Education Cess | 4% on the amount of Income Tax and Surcharge (if any) |
| 4 | AMT | Alternative Minimum Tax: The LLP can not pay less than 9% Plus Cess of the adjusted total income U/s 115 JC |
Limit on Partner Remuneration: The LLP Can pay remuneration to its Working Partners Only, subject to a specific clause regarding the payment of compensation to the partner. However, such managerial remuneration should be within the prescribed limit under the Income Tax Act.
| S.No | Book Profit | Amount Allowed as Remuneration U/s 40B |
| 1 | Up to 3 Lakhs of book Profit. | 1.5 Lakh or 90% o the Book Profit Whichever is higher |
| 2 | On Excess of Rs. 3,00,000/- | 60% of the Book Profit after the first Rs. 3 Lakhs. |
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Annual Compliance for the LLP
The LLP Has to file Income Tax and ROC Return every year. Here is a brief note on the annual compliance.
| S.No | Annual Filing | Particulars |
| 1 | Account Finalizations | At the end of the FY, the LLP must finalise their books of account and prepare a statement of income and expenditure and the balance sheet in compliance with the LLP Act and the Income Tax Laws. |
| 2 | Statutory Audit | A statutory audit is not required for small LLP. However, it becomes mandatory when the turnover of the LLP is over Rs. 40 Lakhs or the Capital of the LLP is more than Rs 25 Lakh |
| 3 | Income Tax Return | Every year the Income Tax for the LLP is filed as per the following due dates. No Situation Due Date 1 No Audit Cases 31st July 2 Audit Cases 30 th October |
| 4 | Form 11 | Form 11 is the annual return of the LLP to the Registrar of Companies and is mandatory filing before the 30th of May of the next year for every financial year. |
| 5 | Form 8 | The LLP need to file their financial information and a statement of solvency to the ROC in form 8. The last date of filing Form 8 is 30th October for the previous financial year. |
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