LLP Registration in Bangalore

As the name says, Limited Liability Partnership registration or LLP is a combination of partnership and corporation. It is loaded with features of both forms. It means that the partners have limited liability in the LLP and that the LLP will not use the partners’ assets to pay off the debts. LLP is a famous business structure being incorporated in India.

An LLP registration in Bangalore is very beneficial against other business structures like perpetual succession, liability, acceptance, and more. The LLP registration in Bangalore is regulated by the Limited Liability Partnership Act 2008 and is administered by the Registrar of Companies, Bangalore.

Limited Liability Partnership registration was introduced in India in April 2009. Many entrepreneurs are now opting for this business structure. Everyone should be liable for their acts and not responsible for others’ misconduct or irresponsible action in the business. This all limited liability partnership is governed under the little liability partnership act of 2008. LLP is a separate legal entity which is distinct from its owners. As an entity, it can enter into a contract and also acquire property in its name. LLP does not just prevail in India but it is found all over the world.

For a Limited Liability Partnership registration, one needs to follow the minimum criteria given below –

• There should be a minimum of two partners
• LLP can start its business immediately upon the issuance of the certificate of incorporation
• The LLP should have its registered office in India
• At least one of the partners should be designated as an Indian resident in case if the LLP has the involvement of foreign nationals
• All the partners should have a DPIN or Designated Partner Identification Number
• All the partners should have DSC or Digital Signature Certificate
• Minors cannot be partners in LLP

Mentioned below are a few of the features of an LLP –

• LLP is registered with MCA or the Ministry of Corporate Affairs
• LLP is a separate corporate body that is incorporated under an act, with an identity legal and different from its partners
• LLP enjoys perpetual succession. It means that it continues to exist even after the death, retirement, or insolvency of one or more partners as against a partnership firm.
• LLP has a separate legal entity, which means the partners and the body corporate of LLP are distinct from each other
• LLP comes with limited liability. It means that status of each partner’s liability in LLP is limited to the agreed contribution. Every partner is legally responsible only up to an agreed liability.
• LLP should have a minimum of two partners with unlimited entrants to the partnership
• Professional businesses such as accounting firms, wealth managers, investment firms, and law firms can work under LLP.

To start LLP registration in India, an individual needs to follow the steps given below –

• Obtaining Digital Signature Certificate (DSC) from the partners
• Application process towards the name for the LLP
• Preparation of all legal documents
• Electronic submission of documents
• Filing incorporation with ROC or register of companies
• Drafting the LLP agreement upon the issuance of incorporation certificate
• Filing for LLP agreement with ROC
• Manual or online application for PAN and TAN

Few details here are regarding steps –

Step 1: Obtain DSC

Before registering an LLP, the designated partners need to apply for the digital signature of the proposed LLP partners. All the LLP documents are to be filed online, and therefore they are required to be signed digitally. The designated partner must get their Digital Signature Certificates from the government recognized agencies for certifying such certificates. The cost of getting a DSC depends upon the certifying agency. One can also get Class 2 or class 3 category of DSC.

Step 2: Name Approval

Reservation of the proposed LLP’s name requires an LLP-RUN or Limited Liability Partnership – Reserve Unique Name to be filled up and processed by the Central Registration Center under non-STP. One can use the free name search facility on the MCA portal, which provides a list of names of the existing companies or LLPs depending upon the search criteria. This portal helps in choosing names that are not similar to the already existing ones. The Registrar approves the name of LLP only if it does not resemble any existing partnership firm or LLP or a trademark or body corporate. The form RUN-LLP accompanies fees as per Annexure ‘A’, which depends on the Registrar’s approval or rejection. However, the resubmission of the form is allowed within 15 days for editing or rectifying any defects. There is also a provision for proposing two names for the LLP.

Step 3: Incorporation of LLP

FiLLiP (Form for incorporation of Limited Liability Partnership) needs to be filed with the Registrar and the fees as per annexure ‘A.’ This form also has a provision for the application for DPIN or DIN. Only two individuals can apply for the allotment of DIN along with registration. If the name for the proposed LLP is approved, it can be filled in the form.

Step 4: File LLP Agreement

An LLP agreement defines the partners’ mutual rights and duties and between the LLP as a separate entity and its partners. The LLP agreement must be filed online using form 3 on the MCA portal. Form 3 for the LLP agreement can be filed within 30 days of the issuance of the incorporation certificate or date of incorporation. The LLP agreement should be printed on a stamp paper, which varies according to the state.

Following documents are required to register a proposed LLP registration in India –

KYC requirements of Partners (with self-attestation)

• Recent passport size photo.
• Copy of PAN card of Partners
• Copy of Aadhaar Card
• Copy of Voter Identity card/ driving license/passport of the partners.
• (Passport copy has to be notarized by the Indian embassy of that particular company country in case if the partner is an NRI or a foreign national)
• A copy of a notarized utility bill of the specific country where the NRI or foreign national resides.

• Evidence of the Registered office of the company mentioning whether the property is rented or leased.
• Copy of the rental or lease agreement.
• Copy of electricity or water bill (of the place of business)
• In the case of ownership property, a copy of the sale deed and electricity bill is enough
• Copy of No Objection Certificate should be obtained from the owner of the property

Professionals or business owners require state licenses if they have to practice as per their professions, such as accountants, attorneys, architects, doctors, dentists, chiropractors, etc. These professionals are allowed to form LLP. An LLP is a separate entity, with each partner having limited liability for business debts. The following are the advantages of choosing an LLP –

• It is convenient and organized
• It is easy to form and operates based on an agreement
• It has a flexible capital structure with the requirement of no minimum capital
• It has a low registration cost
• There is no limit to the owners of the business
• There are lower compliances to be followed, such as no compulsory audits and exemption from taxes.
• The dividend distribution tax is not applicable
• It comes with fewer restrictions, with limited liability for partners being a separate legal entity

The foreign direct investment is much smoother in an LLP

The following are the advantages of LLP registration –

• Limited liability protection – LLP registration comes with limited liability protection for the partners. The partners have limited liability as agreed upon through the agreement
• Pass-through taxation – There are tax exemptions provided for such LLPs
• Conversion from the general partnership – A general partnership can get converted to LLP, which can be highly beneficial to the partners as their duties and responsibilities become limited
• Flexible management – LLPs have a flexible management system with everybody working as a director or CEO
• Few formal requirements – One needs to follow only a few formal requirements to form an LLP

LLP registration can be very stressful. BSJ and associates are backed by a dedicated team that handles LLP registration throughout India. The group provides ease with the whole process and business and financial advisory services related to the client business. BSJ and associates team is well equipped to handle both offline and online LLP registration services. Your guide to LLP registration services – BSJ and associates.