Seeking a partnership but are afraid of exposing yourself personally? Your solution might be a Limited Liability Partnership (LLP). It gives the ease of a partnership along with the protection of a company's limited liability. StartupFlora, your traveling companion in creating startups and small businesses, stands ready to guide you through the creation of an LLP. We advise new companies right from the beginning, and an understanding of legal forms such as LLPs is an important aspect of it.
What is an LLP?
Limited Liability Partnership (LLP) is a business structure under which partners have limited liability. That is, their personal wealth is not taken over by their business debts. It's the worst and the best of the worst: partnership ease and company protection. It's a possibility with companies like consultancy practices, solicitors' practices, and some technology start-ups.
Why Use an LLP?
The LLP has a number of benefits:
Limited Liability: The partners themselves are not made liable for business loans. Their personal belongings are secure.
Flexibility: LLPs have less regulatory requirements to follow compared to ordinary companies, with more freedom of action.
Tax Advantage: LLPs are taxed as a partnership to prevent double taxation incurred by companies.
Separate Legal Personality: An LLP is a distinct legal person, i.e., it can sue or be sued, contract, and own property in its own name.
How to Open an LLP: A Step-by-Step Guide
Opening an LLP in India is a process that involves a few very significant steps:
Name Reservation: Select a unique and available name for your LLP. Name availability can be searched on the Ministry of Corporate Affairs (MCA) website.
Obtain Designated Partner Identification Number (DPIN): There should be at least two designated partners with a DPIN. It is a distinct identification number.
Digital Signature Certificates (DSC): Both concerned partners must have DSCs too for e-filing.
Draw up LLP Agreement: A very important document with the share and role of each partner in profit-sharing and other terms of the partnership. It is your playbook for LLP.
File Incorporation Papers: File the incorporation papers to the Registrar of Companies (ROC). These consist of the LLP agreement and other related forms. This would initiate the process of LLP registration.
Obtain Certificate of Incorporation: After your application is sanctioned by the ROC, you will receive a certificate of incorporation LLP. This is your certificate which validates your LLP company is registered. It signals the completion of the successful registration of the LLP company.
Apply for PAN and TAN: After getting incorporated, apply for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for your LLP.
LLP Registration in India: Simple and Online
The India LLP registration is quite a digital procedure, so it is easy and convenient. You can register LLP online through the MCA portal. That it's online simplifies register LLP in India.
Key Points to Remember Before You Start
Before you leap onto the LLP registration, keep these in mind:
Number of Partners: An LLP must have a minimum of two designated partners.
Contribution: Partners must contribute to the LLP capital.
Registered Office: The registered office of LLP must be in India.
LLP Firm Registration: What's the Difference?
You might also be hearing LLP firm registration or limited liability partnership firm registration.
They both technically denote the same as LLP registration.
They both basically denote company registration as a limited liability partnership.
StartupFlora: Your Partner in LLP Formation
We at StartupFlora, ease startups and small businesses in the company registration process.
We can guide you through the process of LLP registration, making you aware of the formalities and gathering the documents required. We can help you draft the LLP agreement and file the documents for incorporation. If we do not complete the registration, we will simplify the process and make it quite less complex for you. Contact us today to learn more about how we can help you get started with your LLP!
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