Articles

Limited Liability Partnership Registration Online in India

by Register Experts Company and Trademark Registration Online
LLP is a Partnership firm with limited liabilities. LLP is a mixture of company and partnership firm or it can be said that it is a hybrid business activity. This concept is introduced to help the small enterprises because in LLP the charges are less and the compliance burden is also very low. The entrepreneur no need to worry about compliance or any other formalities, he/she can focus on his their business. LLP is a very good option for the startup who are small or medium enterprises because it gives the benefit of companies as well as an entrepreneur can register LLP online without going anywhere.

For LLP registration the process is online, the form needs to be submitted to the ROC online and ROC will issue the certificate online means now no need to go anywhere or no officer will visit the place for issuing a certificate. Register Experts takes only 10-15 days to register the LLP for entrepreneurs.

Process of LLP Registration Online

  1. Name Application: Name is the main important part of the business and it should be unique and approved by the government. Name application shall be filed to the ROC and if it is approved then it will be reserved for 3 months.
  2. DIN & DSC: All the designated partner must have DIN & DSC before registration. If any designated partner doesn’t have DIN then he/she can directly apply for the DIN in the application for LLP registration means now there is no need to apply DIN separately.
  3. Drafting & Signing of Documents: Once the name is approved there are certain documents that are needed to be drafted and the same should be signed by the partners or designated partners.
  4. Filing of Incorporation form: After completion of all the above steps a final form shall be submitted for incorporation. A final form should be submitted within 3 months from the date of name approval along with fees and documents.
  5. Certificate of Incorporation: If all the documents are correct and the same is accepted by the ROC then a certificate of incorporation shall be granted.
  6. PAN Application: For PAN allotment a sperate application shall be filed to the NSDL, whereas in case of company registration PAN allotted by the department along with the certificate of incorporation
  7. LLP Agreement: After getting registered with ROC an initial agreement shall be submitted to the ROC within 30 days from the date of registration if any delay occurred in the submission of this agreement then there is a penalty of Rs. 100/- per day will be charged by the ROC.

Advantages of LLP

  1. There can be any number of partners in the LLP but the minimum shall be 2
  2. There is no restriction on the capital contribution as it can be any amount
  3. The liabilities of the partners are limited and they are not liable personally for any liability of the LLP and other partners.
  4. The LLP can own, sell or mortgage, rent, buy any property whether tangible or intangible in its name because it has its own identity which makes it different from its partners.
  5. The burden of compliances is less in comparison to companies as well as charges are also low for registration and compliances as in comparison to companies.
  6. No need to appoint an auditor or independent director or company secretary like a company has to do and also there is no need to do any kind of tax audit until the capital contribution exceeds Rs. 25 lakhs or turnover exceeds Rs. 40 lakhs.
  7. No need to pay DDT @ 15% on the distribution of profit among the partners of the LLP like a company has to pay at the time of distribution of dividend.

Disadvantages of LLP

  1. A single person cannot register an LLP
  2. Cannot issue shares to the public and cannot raise funds from the general public by issuing shares to them.
  3. There is a flat 30% tax rate on LLP irrespective of its turnover or profit or income
  4. An LLP cannot get closed easily by breaking the agreement or mutual consent of the partners like a partnership firm do, there is a procedure which LLP has to follow with ROC. If ROC approve the closure application only then an LLP get closed
  5. An LLP has to disclose its financials and other documents to the ROC every year. It also has to disclose its income, losses or profit to the department.


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About Register Experts Junior   Company and Trademark Registration Online

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Joined APSense since, March 9th, 2021, From New Delhi, India.

Created on Apr 16th 2021 01:50. Viewed 136 times.

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