Limited Liability Partnership (LLP) was introduced in India by way of the Limited Liability Partnership Act, 2008. The basic premise behind the introduction of Limited Liability Partnership (LLP) is to provide a form of business entity that is simple to maintain while providing limited liability to the owners. Since, its introduction in 2010, LLP’s has been well received with over one lakhs registrations in India.
Limited Liability Partnership Act, 2008 brought with itself the concept of LLP .The benefits of LLP are that it is simple to maintain & it provides the privilege of limited liability to the owners. Thus combines the benefits of both company & partnership into a single organization. One partner is not responsible or liable for another partner’s misconduct or negligence. Therefore, all partners have a sought of limited liability for each individual’s protection within the partnership, similar to that of the shareholders of a corporation.
The only difference between the company and the LLP is that, the partners have the right to manage the business directly. Also the personal assets are free from the errors, omissions, incompetence, or negligence of the LLP’s employees or other agents. Thus, LLP is one of the easiest forms of business to incorporate and manage.
Procedure to be followed for starting LLP:
|Minimum Requirement for LLP||Document Requirement for LLP|
|· Minimum two person as partner.
· Minimum Capital shall be Rs. 10,000.
· DIN for the all the Partners.
· Digital Signature for all the partners.
· Consent From the partners.
· Proof of Registered Address.
· NOC from the owner of premises.
|· Latest Colour Photo of all the partners.
· Pan Card of the all the partners.
· Address Proof of all the partners. In case Premises is taken on Rent / Lease, Rent agreement will also be required.
· Signature on the DSC Form.
· Signature on Affidavit for DIN.
· Signature on Consent form.
· Signature on Subscriber Sheet.
|Obtaining DSC & DPIN||Name Approval||LLP Incorporation|
|It takes around 14-20 days to incorporate a LLP at R R H & Associates which may vary subject to the processing time & whether the proposed partners have their DSC & DPIN ready or not which basically takes around 5-7 days.||Check LLP name availability.
Name Approval can be obtained in 5 to 7 working days subject to availability, guidelines, processing time, etc wherein application for Name Approval is filed in Form-1 along with the proposed names of maximum 6 & minimum 1 person with the MCA.
|After the name is approved, the LLP Agreement is drafted & sent MCA Approval along with Form-2, Form-3, Form-4 & Form-9.MCA will generally approve the application for incorporation in 5 to 7 days, subject to their E-forms processing time &filed in proper order.|
Post-Incorporation LLP Compliances:
R R H & Associates can help you maintain the basic accounting and compliance for your LLP – at a very affordable price point. The following are compliances that a LLP must complete each year.
Income Tax Return: LLPs must file income tax return using Form ITR 5. Form ITR 5 can be filed online through the income tax website using the digital signature of the designated partner.
MCA Annual Return: LLP Form 11 is due on or before 30th of May each year. Form 11 contains details of the number of partners, total number of partners, total contribution received by all partners, details of body corporate as partners and summary of partners.
In addition to LLP Form 11, Form 8 must be filed within 30 days from the end of 6 months of the financial year along with some prescribed fee. Hence, LLP Form 8 would be due on or before 30th October of each financial year.
In addition to the above, GST registration, GST return filing and TDS return filing would be required for the LLP – based on the sales turnover and various other criteria’s.
In addition to LLP registration, R R H & Associates also offers a variety of business registration services like private limited company registration, one person company registration, Nidhi Company Registration, Section 8 Company Registration, Producer Company Registration and Indian Subsidiary registration.