LLP registration or limited liability partnership is an alternative business form that provides benefits such as limited liability company benefits and relief payments to the partnership firm.
LLP represents components of both partnerships and corporations. This innovative and motivated form of the company has been in the Indian corporate world for over 200 years. No. The limited liability was introduce by the Partnership Act.
This unique hybrid combination of limit and Partnership Company is thus suitable for small, medium sized businesses or professionals.
The easiest business to enter and manage there is one introduction since more than one lakh registrations have been received in India. A minimum of two partners can include an LLP, there is no upper limit.
One partner in an LLP registration in Hyderabad is not responsible for another partner’s misconduct or negligence. The mutual rights and obligations of the partners with the LLP are govern by agreements that are sign between the partners.
As an LLP, it is not capable of issuing equity shares. LLPs should not be chose for any business that plans to raise equity funds investors, venture capitalists or private equity.
Feature of LLP registration:
It has a different legal entity, just like companies
Each partner’s liability is limit to the contribution made by the partner
The cost of creating an LLP is low
Low compliance and rules
Minimum capital contribution is not require
Minimum Number of partners to include an LLP is 2. There is no limit on the maximum number of LLP partners. Among the partners, there should be at least two designate partners who should be individuals, and at least one of them should reside in India. The principle and duties of designated partners are ruled by the LLP agreement. They are directly responsible for complying with all the provisions of the LLP Act 2008 and the provisions mentioned in the LLP Agreement.
If you want to commence your business with a limited liability partnership, you must incorporate it under the Limited Liability Partnership Act, 2008
Advantage of LLP formation:
Limited liability of partners
Because an LLP can enter into a contractual relationship in its own capacity, it offers partners huge benefits in limiting their personal risk. As per the LLP agreement, the liability of any partner for financial contribution is limit to capital contribution. Many new age businesses prefer LLP registration in hyderabad over partnership to protect their personal assets in case of loss, or bankruptcy. Further, no partner is held responsible for any partner’s actions of negligence or misconduct.
The LLP agreement specifies the operating structure, including the deed between the LLP’s partners, the partners’ rights and obligations. Typically, the LLP will select a “designated member” who will handle day-to-day operations. It may include individuals or existing businesses as members. Further, this framework allows us to clearly define the role of partners and their respective responsibilities. It can help protect the partner’s interest in the event of a loss due to the unlawful act of any other partner.
Separate legal entity
LLP registration creates a different legal identity than its partners. Operated by the LLP Act of 2008, it allows businesses to enter into agreements with other companies, take legal action, own property and take money in the name of the LLP itself. This is a big advantage that is not available for a regular partnership pay firm
Requires less compliance
The main advantage of registering an LLP on a private company is the need to comply less. Its audit is not necessarily mandatory until a certain level of turnover or contribution. Unlike companies, board meetings, legal meetings, etc. related compliance does not apply to LLP. Professional services for compliance are generally available at cheaper rates than companies, making it cost effective to maintain an LLP.
Documents required for registration of LLP
PAN card of all partners
Foreign nationals can issue passports
Proof of address of partners
Aadhar Card / Voter ID / Passport / License of all partners
Latest passport size photograph of all partners
Proof of business address
Latest electricity bill / telephone bill of registered office fee address
NOC from the owner
No objection certificate is require from the owner of the register office fee
Rental agreement of registered office fees, if any, should be provided
In case of NRI or foreign national, partner’s documents must be notarize or apostolic
A structure named LLP
Helps to easily name and create a distinct identity
Communicate your business activity clearly
Procedure for LLP formation:
Step 1: Obtain Digital Signature Certificate (DSC)
The first step towards LLP registration in Hyderabad is to obtain the digital signatures of all designated LLP partners. Digital signatures are require as LLP documents are file online. These documents have digital signatures that further help in obtaining the certificate.
Digital signatures can be obtain from essentially certified government agencies, such as the National Informatics Centre, the IDRBT Certifying Authority, e-Mudra, CDAC and NSDL. The cost of acquiring DSC will be as per the certifying agency applied for by the applicant.
Step 2: Name reserve
To register a proposed LLP, the applicant needs to obtain a Limited Liability Partnership-Reserved Unique Name (LLP-Run), which can be processed at a central registration centre. However, before quoting a name, it is always recommend checking through the Ministry of Corporate Affairs (MCA) portal for a free name. This will provide the proposed LLP registration in Hyderabad with a list of companies with similar or similar names. Once the name is select, the registrar will approve the name which is not very similar to any existing LLP. The LLP-run will need to be submit along with the fee which will then proceed for the approval of the Registrar.
Step 3: Inclusion of LLP
For inclusion of LLP, the Registrar is require to fill up a form for inclusion of Limited Liability Partnership (FILLP). Fees have to be pay as per attachment ‘A’. Only 2 persons will be allow to apply for allotment.
Step 4: File a limited liability partnership agreement
This agreement governs the mutual rights and duties between the partners. The agreement can be file in the online form on the MCA portal. Forms for LLP Agreement must be fill out within 3 days from the date of insertion. LLP agreements have to be print on stamp paper, with each state’s stamp paper being different.