Register Your LLP Online in India with Expert Help

Basic ₹4,999

Standard ₹11,999

₹ 7,999

• Name Search & Approval

• Director Identification No (DIN)

• Incorporation Certificate

• LLP Agreement Drafting

• LLP PAN & TAN

• LLP Form-3 Filling

Let's Start

₹16,999

• Everything of Basic Plan +

• GST Registration

• MSME Registration

• Shops Act Registration

• Digital Signature (2 Directors)

• GST Return- 3 months

Let's Start

Proposals

(Save ₹3,000)

(Save ₹ 5,000)

Advanced ₹19,999

₹ 25,999

(Save ₹6,000)

• Everything of Standard Plan +

• Director E-KYC (3 years)

• ROC Compliance (Form-11)

• ROC Compliance (Form-8)

• LLP ITR Filling

• Company ITR Filling

Let's Start

(Only for First Year of Incorporation)

**Prices shown above are only our professional fee. Does not include GST & Government fee

What is Limited Liability Partnership (LLP) Registration

Limited Liability Partnership (LLP) registration is a popular choice for startups and small businesses, blending the features of a partnership and a private company. One key advantage is that LLPs require no minimum capital, making them accessible to new entrepreneurs. The process starts with selecting the availability of an unique business name, which is checked for availability using the RUN-LLP service on the Ministry of Corporate Affairs (MCA) portal.

To formally register, applicants have to submit a form on the MCA. The form provides the proposed name of LLP, the address of its registered office, and details of partners. Every partner should have either a Director Identification Number (DIN) or Designated Partner Identification Number (DPIN), and a Digital Signature Certificate (DSC) to electronically sign documents. Documents necessary are identification and address proof for partners and proof of the registered office address.

Once the business name is approved, the LLP agreement is prepared to establish roles, duties, and profit-sharing percentages between partners. The agreement is a document of internal governance of the LLP. After verification, the MCA delivers a Certificate of Incorporation officially identifying the LLP as an existing legal entity.

After incorporation, the LLP is required to open a bank account in its name and acquire PAN and TAN for tax purposes. Also, businesses can optionally register an MSME to avail government incentives for small businesses. LLPs provide management flexibility, individual assets, and have lesser compliance requirements compared to a private limited company, and hence are a popular choice for small businesses looking for a scalable, low-compliance setup.

Limited Liability Partnership Act, 2008

This Act make provisions for the formation and regulation of limited liability partnerships and for matters connected therewith or incidental thereto Limited Liability Partnership in Company Law. As per Company Law, Limited Liability Partnerships (LLPs) is an unique entity offering limited liability protection to its partners. LLPs have a separate legal status while maintaining operational flexibility akin to partnerships. This framework under the LLP Act, 2008, facilitates streamlined registration and operational processes for businesses in India.

What Are the Key Features of a Limited Liability Partnership?

Limited Liability Partnerships (LLPs) combine the benefits of a company and a partnership structure. They offer limited liability to partners and a flexible internal management framework. Here is the detailed list of the main features of the same:

• Legal Status of LLPs: LLPs enjoy separate legal personality status, independent of their partners, to hold assets, contract, and sue or be sued in their name.

• Flexibility in Management: Flexibility in management structure and decision-making is provided through LLPs. Partners can either manage the LLP themselves or designate specific managers or committees for particular functions.

• Liability Protection: LLP members have limited liability, such that their private property is protected against the debts and liabilities of the LLP. Only to the extent of the contribution agreed by them are the partners liable.

• Minimum Compliance Requirements: Compared to companies, LLPs have fewer compliance requirements. They are exempt from the requirement of holding annual general meetings (AGMs) or keeping extensive statutory records, thus reducing administrative hassles.

• Taxation Advantages: LLPs are taxed as a partnership, and the profits are received by the partners who are taxed individually. It prevents double taxation that is seen in case of companies where both the company and shareholders are taxed.

• Perpetual Succession: LLPs possess perpetual succession, and it means that the LLP remains in existence even if there is a change in partners through retirement, resignation, or death. The existence of the LLP will not be impacted due to changes in its membership.

• Ease of Transferability: LLP interests are transferable with ease, depending on the LLP agreement. This makes changes in investments and ownership possible without interfering with the operations of the LLP

What are the Benefits of Registering my LLP

Advantages of LLP registration are limited liability protection, flexibility in management, tax benefits, and the ease of meeting regulatory requirements. Some of the advantages are:

• Limited Liability: LLP registration provides partners with limited liability of the partners, protecting personal assets from business debts and liabilities.

• Separate Legal Entity: LLP has a separate legal entity, which enables it to enter contracts, own assets, and sue or be sued in its own name independently of its partners. It is suitable for startups.

• Flexible Management Structure: LLPs allow the terms of management and operations to be structured according to the LLP agreement, wherein the partners have freedom to determine roles, duties, and decision-making terms.

• Minimum Compliance Burden: LLPs have less compliance compared to companies, minimising the administrative costs and burdens. LLPs are exempted from the requirement of holding annual general meetings (AGMs) and also have lessened audit requirements.

• Tax Efficiency: LLPs are subject to taxation as partnerships, and profits are shared with partners at their respective tax slabs. Double taxation of company profits and dividends is thus circumvented.

• Perpetual Succession: LLPs have perpetual succession, meaning continuity despite the change in partners through retirement, resignation, or death.

• Easy Transferability of Ownership: Transfer of interests in an LLP is made easy as per the LLP agreement, allowing for change in ownership and investment without impacting the LLP operations.

• Credibility and Trust: Registration as an LLP increases credibility and trust with stakeholders, such as clients, suppliers, and investors, through its established legal status and limited liability format.

• Access to Funding: LLP registration enhances access to finance and funding sources, such as bank loans, venture capital, and government schemes, improving growth potential.

• Global Recognition: LLPs are globally recognised, making it easier for companies to expand outside their home countries and collaborate with foreign companies under bilateral and multilateral arrangements.

LLP Incorporation Checklist

After registering your LLP you must follow certain important compliances and process requirements that have to be followed after registering an LLP. Here is a detailed outline for the same:

• Pre-Filing Requirements

  It is essential to fulfill the following requirements prior to filing for LLP incorporation:

  • Name Reservation: Select a distinct name for the LLP and reserve the name with the Registrar of Companies (ROC). Name approval is fundamental for LLP registration.

  • Partnership Agreement: Draft an LLP agreement specifying roles, duties, profit-sharing, and decision-making among partners.

  • Partner Identification: Get Digital Signature Certificates (DSC) of all partners who are going to be part of the LLP.

  • Registered Office: Give evidence of the registered office address of the LLP.

• Filing Processes

  Proceed with the below steps for filing incorporation of LLP:

  • Document Preparation: Prepare documents required such as LLP agreement, identity proof, address proof, and partners' consent

  • Form Submission: Complete and file Form 2 with the ROC along with the documents and fees

  • Verification: ROC authenticates documents and approves the application for incorporation of LLP

  • Certificate Issuance: On approval, ROC issues the Certificate of Incorporation, which records the legal existence of the LLP.

• Post-Filing Compliance

  Post-LLP incorporation, be in compliance with continuing requirements:

  • LLP Agreement Registration: File the LLP agreement with the ROC within 30 days of incorporation

  • PAN and TAN Application: Apply for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the LLP

  • Annual Compliance: File annual returns and maintain financial records as per LLP Act requirements

  • Changes in LLP: Notify ROC of any changes in partners, addresses, or LLP agreements through prescribed forms.

Documents Required for LLP Registration in India

In order to register a Limited Liability Partnership (LLP) in India, the following documents are generally required:

• Identity Proof of Partners:

  PAN Card (Indian Nationals) or Passport (Foreign Nationals)

  Aadhaar Card or Voter ID Card

  Passport photograph

• Address Proof of Partners:

  Aadhar Card or Voter ID Card

  Passport or Driving License

  Utility bills (electricity bill, water bill, gas bill or telephone bill) which are not older than 2 months

• Registered Office Proof:

  Rent agreement or lease deed (if rented)

  Property receipt or ownership deed (in case of ownership)

  NOC (No Objection Certificate) from the landlord (in case of rent)

• Partnership Agreement (LLP Agreement):

  Duly drafted LLP agreement defining roles, responsibilities, share in profit, and decision-making

  among the partners.

• Digital Signature Certificates (DSC):

  DSC of all the partners seeking LLP registration.

• Consent of Partners:

  Consent of every partner to be partners of the LLP in Form 9.

• Form for LLP Registration:

  Form 2: Incorporation application for LLP, and partner details, registered office address, LLP agreement, etc.

• Declaration by Designated Partners:

  Declaration in Form 1 of LLP for fulfillment of all LLP incorporation requirements.

• Other Optional Documents (if necessary):

  Professional qualification proof (where the designated partners are professionals)

  Certificate of incorporation or registration (where the partners are corporate bodies)

Charter24's LLP Registration Process

At Charter24, we make the LLP registration process simple and easy so that our clients can focus on their business. Here's how our LLP registration process generally goes:

• Step 1: Consultation and Planning

  Our professionals talk with you about your business needs and goals to find the most appropriate LLP structure.

• Step 2: Name Reservation

  We conduct a thorough name availability search and reserve a unique name of the LLP that complies with regulatory guidelines. Our team will file the RUN-LLP for the same.

• Step 3: Document Preparation

  Our team assists in drafting the LLP agreement, outlining partner roles, profit-sharing, and operational procedures according to your specifications.

• Step 4: Digital Signature Certificates (DSC)

  We arrange for the issuance of Digital Signature Certificates (DSC) for all the partners of the LLP.

• Step 5: Filing with Registrar of Companies (ROC)

  We draft and file Form 2 (application for incorporation of LLP) and other documents with the ROC on your behalf.

• Step 6: Verification and Approval

  Our professionals coordinate with the ROC to check the documents submitted and confirm LLP Act compliance.

• Step 7: Certificate of Incorporation

  On approval of registration of the company, we receive the Incorporation documents from the ROC to confirm the legal existence of your LLP.

• Step 8: Post-Incorporation Compliance

  We help you get PAN and TAN for your LLP, register the LLP agreement, and maintain ongoing compliance with regulatory filings.

• Step 9: Additional Services

  Charter24 offers continuous support for annual compliances, trademark registration, professional tax, proposed LLP structure changes, and other legal compliances to facilitate you in running and expanding your business smoothly.

Annual Filings for Limited Liability Partnership

• Financial Statements

  • LLPs must prepare and file financial statements once a year. The financial statements are:

  • Statement of Accounts: Contains Balance Sheet, Profit and Loss Account, and Cash Flow Statement.

  • Statement of Solvency: Required to be filed by LLPs having a turnover of more than ₹40 lakhs or capital contribution of more than ₹25 lakhs.

• Annual Returns

  • Annual returns are to be filed by LLPs with the Registrar of Companies (ROC). The annual return contains such information as:

  • Statement of Account:Filed with the ROC within 30 days from the close of six months from the financial year.

  • Annual Return Form: Filed within 60 days after the financial year closes.

• Audit Requirements (if any)

  • Audit requirements of LLPs are based on their turnover and capital contribution:

  • Audit Requirement: LLPs with a turnover above ₹40 lakhs or capital contribution above ₹25 lakhs must obtain their accounts audited by a Chartered Accountant.

  • Exemption: Small LLPs (whose turnover is not more than ₹40 lakhs and whose capital contribution is not more than ₹25 lakhs) are exempted from audit.

Taxation of Limited Liability Partnerships

Limited Liability Partnerships (LLPs) are taxed differently than regular corporations. The following is an overview of how LLPs are taxed:

LLPs are treated as pass-through entities, just like partnerships. This implies that LLPs do not pay taxes at the corporate level. The profits or losses are instead passed through to the partners, who report them on their personal income tax returns. The partners are assessed at their respective individual income tax rates that apply to their respective income ranges.

LLPs need to file an LLP Return of Income (Form ITR-5) with the Income Tax Department every year. The form contains income, deductions, and other financial details in relation to the tax liability of the LLP. LLPs can also be liable for other compliances to taxes based on their business and turnover.