LLP INCORPORATION
Limited Liability Partnership (LLP) is a special form of business that combines the advantages of both a private limited company and a partnership. It offers the ease of a partnership combined with the limited liability of a company. The process of registering an LLP in India is regulated by the Limited Liability Partnership Act, 2008, and is suitable for startups, small enterprises, and professionals who want a simple structure.
FORMATION AND INCORPORATION OF LLP
Incorporation and formation of LLP starts with the selection of a unique name and its search availability through the Ministry of Corporate Affairs (MCA) website. The name cannot be the same as any already existing company or trademarks and has to end with “LLP.” After approval of the name, the next is securing Digital Signature Certificates (DSC) and Designated Partner Identification Numbers (DPIN) for all the proposed partners. These are required for signing electronic documents at the time of online registration of LLP.
LLP INCORPORATION NEW PROCESS
The LLP incorporation new process has been made simpler with the launch of the FiLLiP form (Form for Incorporation of Limited Liability Partnership). This integrated single form makes it easy with partners being able to fill in multiple steps at one time:
– Apply for name reservation (if already not done).
– Fill FiLLiP along with supporting documents:
– Proof of identity and address of partners
-Proof of address of the registered office
-Consent of designated partners
– After submission, the Registrar of Companies (ROC) scrutinizes the application.
– After approval, the Certificate of Incorporation (COI) is issued along with a special LLP Identification Number (LLPIN).
– After incorporation, the LLP should file an LLP Agreement within 30 days in Form 3. This agreement specifies profit-sharing ratios, rights, duties, and responsibilities of partners.
INCORPORATE LLP ONLINE
With digitalization, it is simple to include LLP online through the MCA portal. The online process minimizes paperwork, brings transparency, and fastens approvals. All application, documents, and payments are processed through the MCA’s online platform.
COST OF LLP REGISTRATION
Cost of LLP registration is different based on the capital contribution and whether professional services are employed:
Government Fees:
Contribution up to ₹1 lakh – ₹500
₹1 lakh to ₹5 lakh – ₹2,000
DSC charges – ₹1,000 to ₹2,000 per individual
Name reservation fee – ₹200
Filing fee for Form 3 – ₹50 to ₹200
Professional/consultant fees – ₹5,000 to ₹15,000 (optional)
So, LLP registration costs are quite nominal, particularly in comparison to private limited companies.
BENEFITS OF LLP
– Limited liability to partners
– Least compliance and audit needs
– No dividend distribution tax (DDT)
– Simple transfer of ownership
– Tax efficiency
In short, the LLP registration is now streamlined, digital, and inexpensive. The online LLP registration makes it easy for entrepreneurs to incorporate LLP online quickly, hence a popular option for the entrepreneurs that are looking for a flexible and legally valid business entity.
