llp registration in hyderabad

LLP registration issues

The advantages of a partnership company and a private limited company are combined in this form of business. The Limited Liability Partnership Act, 2008, which regulates LLPs in India, was the first legislation to introduce the LLP concept in India. It is necessary to assign an incorporated LLP with at least two partners.

Is LLP temporarily suspended?

The process of registering as an LLP is not halted; however, partners without a Director Identification Number (DIN) are unable to register a Limited Liability Partnership due to the temporary suspension of the DIN.

LLP issues

Penalty for non-compliance

An LLP must submit an annual income tax return and MCA annual return even if it does not conduct any business. A daily penalty of Rs. 100 per form applies if an LLP fails to file Form 8 or Form 11 (LLP Annual Filing). The penalty is unlimited, and if an LLP hasn’t filed its annual return in a few years, it could be thousands of dollars.

An annual return is not required for sole proprietorship or partnership businesses. As a result, the Income Tax Act’s penalty would be the only one that would apply.

Inability to have equity funds

A LLP doesn’t have the idea of value or shareholding like an organization. Subsequently, private backers, HNIs, funding and private equity fund can’t put resources into a LLP as investors. As a result, the majority of LLPs would require funding from promoters or debt.

Higher income tax

A business with a turnover of up to Rs. 250 crores is subject to a 25% income tax rate. Further reduced in 2019 for new manufacturing businesses). However, regardless of turnover, LLPs are taxed at a rate of 30%.

Which firm cannot register for LLP?

Sole proprietorship

A sole proprietorship cannot be transformed into an LLP because it is owned and operated by a single individual.

Charitable trust

A charitable trust cannot be converted into an LLP.

Non-profit organization

It is not possible to convert a non-profit organization into an LLP.

Public sector

Public sector companies, for example, state-owned enterprises and government-owned organizations, are not qualified for change to a LLP and cannot get LLP registration in Hyderabad.

Foreign companies

Converting a foreign company into an LLP (Limited Liability Partnership) is not possible for foreign corporations and LLCs.

Then what are the eligibilities for conversion into LLP?

The following are the eligibilities for the conversion.

A business registration in India is required:

To be qualified for change to a LLP, the business should get online LLP registration in Hyderabad. This means that a Limited Liability Partnership (LLP) cannot be formed from a foreign business entity like a foreign corporation or LLC.

The company must adhere to all laws and regulations in place:

To be eligible for conversion to an LLP, the company must adhere to all applicable laws and regulations. This encompasses all tax, labor, and environmental protection laws and regulations.

The change must be approved by all members:

The change to an LLP (Limited Liability Partnership) requires the agreement of all business members. All shareholders, partners, or members of the company, as appropriate, are included in this.

There must be at least two designated partners for the business:

The company must have at least two designated partners to be eligible for conversion to an LLP (Limited Liability Partnership). It can have LLP registration in Hyderabad.

The assigned partners should be people, and no less than one of them should be an inhabitant of India.

The business should have at least three individuals:

To be qualified for change to a LLP and to get LLP registration in Hyderabad, the business should have at least three individuals. Individuals or legal entities, such as a corporation or LLC, can be members.

The LLP must not participate in any illegal activities:

Anything that is against the law cannot be done by an LLP. Banking, insurance, and the sale of some securities are all examples of this.

The LLP should have a base capital commitment:

An LLP (Limited liability partnership) with LLP registration in Hyderabad should have a base capital commitment of in any event ₹ 1 lakh.

There must be a registered office for the LLP:

An Indian registered office is required for LLP registration in Hyderabad.

Benefits of LLP

  • An LLP is a flexible business structure that lets the partners choose how to run the company.
  • Each partner’s rights and responsibilities, as well as the management style, including who will make decisions and how profits will be divided, are up to the members.
  • Members of an LLP with LLP registration in Hyderabad can take advantage of numerous tax breaks.
  • For instance, the profits and losses of the LLP are distributed to the partners, who report them on their tax returns, and the LLP is exempt from double taxation.
  • This permits the partners to exploit different deductions and credits that are not accessible to other business substances.
  • Limiting personal liability for business debts and liabilities is one of an LLP’s most significant advantages. The entrepreneurs are not responsible for the obligations and liabilities caused by the LLP. As a result, the owner’s assets are safe in the event of a lawsuit against the LLP.


It is becoming more and more common for business owners to change their businesses into Limited Liability Partnerships (LLPs) instead of sole proprietorships, partnerships, or corporations.

With this kind of partnership, business owners can limit their liability for the company’s debts and other obligations. However, not every business can legally become an LLP. The entities that cannot be converted into an LLP will be discussed in this article.

An LLP is a type of business entity in which at least two partners share business management responsibilities and are equally responsible for debts and other obligations.

Benefits of this type of business entity include protection of business assets, flexibility in management, tax advantages, and limited liability.

We have a team of experts who assist in the formation of LLP. We offer services at an affordable cost.