A Limited Liability Partnership (LLP) provides the benefits of both a partnership and company. In India, the Limited Liability Partnership Act 2008 governs Limited Liability Partnership (LLP). The Limited Liability Partnership (LLP) requires a minimum of 2 partners, while there is no limit on the maximum number of partners. In a limited liability partnership, the partners have limited liability, meaning if any financial or legal issue arises in the future related to the limited liability partnership, the personal belongings of the partners will be protected. A Limited Liability Partnership (LLP) offers flexibility and easy management of the business. At Shine Legal, we help manage the process of registering a limited liability partnership from document collection to the final registration of your limited liability partnership. Our expert team handles the entire process efficiently, helping you save time and effort. We also provide customized services to meet your business needs, providing the best solutions for your Limited Liability Partnership (LLP) registration and active compliance.
The Limited Liability Partnership (LLP) Act 2008 is the primary statute that governs limited liability partnerships in India. The Limited Liability Partnership Act 2008 was introduced to provide a legal framework for limited liability partnerships, which helped entrepreneurs to start a business with the benefit of limited liability.
1.Limited Liability - The liability of every partner in a limited liability partnership depends upon the money they have invested in the business. The partners are not personally liable for more money than they had invested.
2.Flexibility - A limited liability partnership gives partners more flexibility in managing the business as compared to other business structures.
3.Separate Legal Entity - A limited liability partnership is a separate legal entity. It has its own rights and responsibilities that are different from the individual partner who manages it.
4.Number of Partners- A limited liability partnership requires a minimum of 2 partners.
5.Ministry of Corporate Affairs (MCA) - The Limited Liability Partnership Act 2008 is regulated by the Ministry of Corporate Affairs (MCA), which looks after the registration, compliance, and governance of limited liability partnership in India.
A limited liability partnership operates on a mutual agreement between the partners.
The partner’s personal holdings are protected from the business’s liabilities. Each partner is only responsible for the money they put into the limited liability partnership.
A limited liability partnership provides flexibility without requiring complex legal and procedural formalities.
Limited Liability Partnerships are generally taxed as a partnership, which can be more beneficial than other business structures.
A limited liability partnership continues to exist even if a partner leaves or passes away.
1. In a limited liability partnership, if there is no clear agreement between the partners on how the business should run the consequences can be more serious as compared to other business structures.
2. As mentioned under the Limited Liability Partnership (LLP) Act 2008, to set up a limited liability partnership in India it is required to have an Indian partner. Foreign nationals or NRIs cannot establish a limited liability partnership in India on their own without an Indian partner.
3. While limited liability partnerships are generally taxed as partnerships, in some cases, they may face higher taxes as compared to a private limited company, when profits are high.
a. Digital Signature Certificates (DSC) - DSC is made necessary because all limited liability partnership registration documents are filed online. The limited liability partnership requires the documents to be digitally signed by the partners. At Shine Legal India, we help in obtaining the DSC to complete the registration process in limited liability partnership.
b. Director Identification Number (DIN) - Every partner of a LLP must have a unique Director Identification Number (DIN). DIN is required to identify each partner legally. Shine Legal India helps you apply for the Director Identification Number (DIN).
c. Name of a Limited Liability Partnership- The choosing of name of a Limited Liability Partnership (LLP) must be different from pre-existing businesses and trademarks. Two names can be suggested, and once one name is approved, incorporation of limited liability partnership must be applied within 3 months.
d. Check Name Availability - Before submitting the name of the limited liability partnership for approval, the availability of the name can be checked by using the MCA portal to make sure no other similar business name exists. At Shine Legal India we guide you in selecting a unique name for your limited liability partnership and assist you in filing the Reserve Unique Name through the Ministry of Corporate Affairs (MCA) portal, making sure it is different from pre-existing businesses and trademarks.
a. Drafting of the Limited Liability Partnership (LLP) Agreement - The limited liability partnership agreement outlines the terms and conditions between the partners. It should be signed by every partner of the LLP. The Limited Liability Partnership (LLP) Agreement must be uploaded side by side while filing for incorporation of a limited liability partnership.
b. Preparation of certain documents for partners - It requires valid identity proof and address proof of every partner and proof of the registered office of the limited liability partnership
a. Filing of the FiLLiP form- While registering the Limited Liability Partnership, it is necessary to fill and submit the FiLLiP form on the Ministry of Corporate Affairs (MCA) portal. This form includes details such as name of the limited liability partnership, Information related to the partners, the registered office address of the limited liability partnership, signed limited liability agreement, payment of required fee. The Shine Legal India team helps you fill out all the necessary forms correctly and submit them on time to avoid any delays.
b. Registrar of Companies (ROC) - The Limited Liability Partnership must be registered with the ROC, who is appointed under the Companies Act 2013.
c. Review and confirmation- The Ministry of Corporate Affairs (MCA) will review the details and documents uploaded on the Portal.
d. Certificate of Incorporation- After verifying the details and the document the Registrar of Companies (ROC) will approve the registration of the limited liability partnership and will issue a Certificate of Incorporation.
At Shine Legal India, we assist you with every step of registering your Limited Liability Partnership (LLP).
Shine Legal India also provides assistance in applying for PAN and TAN, which are necessary for tax-related activities. We can also guide you through the process of registering for GST.
| Feature | Limited Liability Partnership (LLP) | Partnership Firm | Private Limited Company |
|---|---|---|---|
| Structure of the business | A LLP is a business structure where the sharing of profit and losses among the partners depends upon the LLP agreement they have executed. | A partnership firm is a business structure where two or more persons share their profits and losses to manage the business. | A Private Limited Company is a business structure where the ownership is divided into shares. |
| Legal body | Separate legal entity, i.e, in case of any financial or legal issue in the future related to the LLP, the personal belongings of the partners will be protected. | No separate legal entity, i.e., in case of any financial or legal issue in the future related to the partnership firm, the personal belongings of the partners will not be protected. | Separate legal entity from its owners |
| Liability | Limited liability | Unlimited liability | Limited liability |
| Minimum number of partners required | 2 partners | 2 partners | 2 shareholders |
| Legal requirements | Medium | Minimum | High |
| Management regulation | It is flexible as the LLP model includes structure of company and partnership. | Managed by the partners | Managed by directors who are appointed by shareholders |
| Tax charges | Taxed on profits of the partners | Taxed on profits of the partners | Follows corporate tax rate |
| Duration | Perpetual | No specific time. Depends upon the partners | Perpetual |
| Change | Private limited company | LLP or a Company | Public Company |
| Documents required for registration |
Digital Signature Certificate Director Identification Number (DIN) Company Name approval Proof of Registered Office of the LLP LLP Agreement |
Partnership deed Identity Proof of the partners Address Proof of the partners Proof of Registered Office of the firm |
Digital Signature Certificate (DSC) Director Identification Number (DIN) Company Name approval Memorandum of Association Articles of Association |
| Filing Forms | FiLLiP | Form 1, Form 2, and Form 3 | SPICe+ |
or ANY ONE CAN BE SELECTED
Shine Legal India provides expert guidance to simplify the registration process of your Limited Liability Partnership (LLP). We provide clear, professional advice at every step. Our experienced team efficiently manages the entire limited liability partnership registration process. We provide high-quality services at the best price. Our customized approach focuses on your unique business needs, providing the best solutions according to your specific requirements with ease and convenience. We provide timely updates throughout the registration process to keep everything on track. We also assist with staying compliant with all legal and regulatory requirements to keep your business in good standing. Additionally, we offer active- ongoing services, such as tax registration, annual filings, and compliance updates, even after your Limited Liability Partnership (LLP) is registered. Shine Legal India provides comprehensive support, from document collection to post-registration of limited liability partnership.
An Limited Liability Partnership (LLP) is a combination of a partnership and a company. This combination provides limited liability protection to its partners and helps in the management of the business.
The process of incorporating an LLP starts with choosing the business name by filing eForm 1 to check the availability of the name. Once the name of the LLP is reserved eForm 2 is filed for the LLP's registration which includes details such as details of its partners, their consent to form LLP. At last the LLP Agreement must be submitted through eForm 3 to the registrar within 30 days of its registration.
The approved name for an Limited Liability Partnership (LLP) is valid for 3 months from the date of approval.
If the LLP is not registered within this period, the name will expire and can be used by someone else. The name of the LLP cannot be renewed.
Firstly, LLP form 8 which deals with the statement of account and solvency. It is to be filed within 30 days from the end of 6 months of the financial year and Secondly, LLP form 11 deals with the annual return. It is to be filed within 60 days of the end of the fiscal year.
Yes, it is mandatory to file an LLP Agreement as per LLP Act 2008.