Limited Liability Partnership (LLP)
Registration
Compliance & Operations
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Registering a Limited Liability Partnership (LLP) has features of both a private limited company as well as 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.”
Registration process of LLP includes following steps
- Obtain Digital Signature
- LLP Name Application through RUN-LLP
- Incorporation of LLP- Form FiLLiP- (Includes DIN Application and PAN and TAN Application)
- File LLP Agreement
Entity Comparison Guide
| TYPE | PROPRIETORSHIP | PARTNERSHIP | LLP | PVT | OPC |
| Members | Maximum 1 | 2 - 20 | 2- Unlimited | 2-200 | 1 |
| Legal Status of Entity | Not Considered as separate Legal entity | Not Considered as separate Legal entity | Considered as separate Legal entity | Considered as separate Legal entity | Considered as separate Legal entity |
| Members Liability | Unlimited Liability | Unlimited Liability | Liability of its members is limited | Limited to the extent of share capital | Limited to the extent of share capital |
| Registration | Not Compulsory | Optional/ Can be Registered under partnership Act 1932 | Registered Under MCA | Registered Under MCA | Registered Under MCA and Companies Act 2013 |
| Transferability Option | Not Allowed | Not Allowed | Can Be Transferred | Can Be Transferred | Allowed to only one person |
| Taxation | As in Individual | 30% of Company Profit | 30% of Profit Plus CESS and Surcharges applicable | 30% of Profit Plus CESS and Surcharges applicable | 30% of Profit Plus CESS and Surcharges applicable |
| Annual Filings | Income Tax Returns with the Registrar of companies | Income Tax Returns with the Registrar of companies | Filed with the registrar of the company | Filed with the registrar of the company | Filed with the registrar of the company |
MCA Compliance
LLP Compliance
| Form | Compliance | Due date | Penalty |
| DIR 3 KYC | For every person with DIN | Before 30th September every year | Rs.5000 penalty if the DIN is deactivated |
| Form 11 | Annual Returns | 30th May | Rs.100 Per day |
| Form 8 | Statements of Accounts and Solvency | 30th October |
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Explore LLP Annual Compliance Filing
Who are eligible for LLP?
To form an LLP, at least two individuals (called Designated Partners) must be appointed. The individuals must be aged 18 or above and must possess a valid Indian address. Designated Partners can be individuals or bodies corporate (such as companies). Foreign nationals, foreign corporate bodies and limited liability partnerships can also be appointed as Designated Partners.
How much does an LLP cost?
The cost of registering an LLP in India depends on the number of partners, the amount of the contribution made by each partner and any additional registration fees. There are additional costs associated with setting up an LLP in India, such as professional fees, stamp duty, and other registration requirements.
Is GST required for LLP?
Yes, Goods and Services Tax (GST) is required for all Limited Liability Partnerships (LLPs) depending on the type of services or goods they offer. LLPs are required to obtain a GST registration and file GST returns on a regular basis.
What is DPIN?
Designated Partner Identification Number is a unique identification number that is assigned to all existing and proposed Designated partners of an LLP. All the present or proposed Directors must have a DPIN.
How long does it take to incorporate an LLP?
The time taken for incorporation depends on the submission of relevant documents by the client as well as the Approvals from the Government authorities. FinAccy Solutions can help you incorporate an LLP in 15-20 days.
Can NRIs/ Foreign Nationals be designated partners in LLP?
Yes, an NRI can also be a designated partner in a Limited Liability Partnership if he has a Designated Partner Identification Number. However, at least one Designated Partner in the LLP must be a resident Indian.
Do LLPs allow Foreign Direct Investment (FDI)?
FDI is allowed under automated route in an LLP by the Foreign Investments Promotion Board (FIPB).
Note: Foreign Institutional Investors and Foreign Capital Investors are not allowed to invest in LLPs.
Can we convert a Partnership Firm into an LLP?
An existing partnership firm or a Company that is unlisted can be converted into an LLP. This conversion into an LLP brings in many benefits
What documents are required for incorporating an LLP?
- For the Partners:
- PAN or Passport
- Any Identity proofs
- Bank statements
- Registered office proof
- NOC from the landlord to use the premises of the registered office
- Any utility bills of the premises which are not less than two months.