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LLP company registration in chennai
Definition of LLP Registration in Chennai
If you are about to launch a startup shortly, the best option for registering as a company is Limited Liability Partnership.
There are many options for registering your business as an entity such as Proprietorship, partnership, private limited and LLP, of all these entities, we are about to see why LLP suits the best for your business.
What is llp company or Limited Liability Partnership Registration in chennai
Limited Liability Partnership, which is called LLP for short, is an improved version of a partnership firm. This type of entity was introduced in India in the year of 2008 through the enactment of the Limited Liability Partnership Act, 2008.
The main advantage of LLP is that it provides the advantage of Limited Liability to the partners. Partners enjoy the benefit of flexibility as a partnership and also limited liability as a Private Limited Company.
LLP company registration in chennai, is a form of incorporation in India, governed by the Limited Liability Act, 2008.
This is just the right constitution for Professionals like Lawyers, Architects, etc. The act was introduced in 2008.
This registration of Limited Liability Partnership in Chennai, gives the partners the advantage of Limited Liability and also the relaxation from complexity as compared with Private Limited.
Minimum Requirements to form a Limited Liability Partnership Registration in chennai
There are certain requirements to form a llp company registration in india
- Minimum Two Partners
- Minimum Two authorized partners
- Registered office address in India
- llp minimum capital contribution – No minimum paid
Min two members required for forming LLP similar like partnership
There is no minimum capital requirement for llp as per the Act of LLP.
The LLP Should be formed for any of the type of Lawful Trade or business
How LLP Different from Partnership
What are the characteristics need for limited liability partnership registration in india
Before opting for the llp registrations in india, we must first understand what are the characteristics of a limited liability partnership. We will briefly see each of its characteristics.
1. Separate Legal Entity:
Limited Liability Partnership is a separate legal entity that is distinct from its partners.
This entity can acquire assets and can even sue any third party on its own behalf.
Even LLP has a separate PAN Card in the name of the Company itself.
Therefore, it is considered as a separate legal entity.
2. Number of Members:
To register LLP company in India, a minimum of 2 partners is required and there is no upper limit for partners.
Additionally, there must be a minimum of two Designated Partners to register a LLP or Limited Liability Partnership in India.
3. Capital Contribution:
To incorporate a Private Limited Company, there is a statutory requirement of Rs 1 lakh as paid up capital.
But, whereas in an LLP there is no such minimum paid up capital requirement.
4. Perpetual succession:
Like a Private Limited Company, a limited liability partnership will not be extinguished even in the event of the death of the partner.
As it is a separate legal entity, it continues to exist even when a partner retires or becomes insolvent.
5. Immense Status:
According to Section 3 of the Limited Liability Partnership Act 2008 (LLP Act), an LLP is a legal person, formed and incorporated under the Act.
Therefore, compared to a proprietorship or partnership firm, an LLP firm registration has a massive status.
6. LLP Agreement:
The LLP contract is the bible of the Organization that speaks of all the rules,
regulations and rights of partners and it also speaks about the rules and regulations of the organization.
Any violation of the terms between the partners is considered a breach of the LLP agreement.
Documents Required for LLP Registration
For the Partners and Designated Partners
- PAN Card of the Members
- Aadhar Card of the Members
- Passport size photo of the Members
- Residencial Proof of the members
- Savings Bank Account Statement
- Gas Bill
- PhoneBill
For business address
- Rental agreement of the office premises
- Property tax receipt/ EB receipt
What is LLP Registration Process in Chennai and How to Register LLP online
The appropriate authority to register a Limited Liability Partnership is the Registrar of the Company. The process of company registration LLP in Chennai is completely online and registration would be done through the MCA Portal owned by the Ministry of Corporate Affairs. We will see the process in detail.
Step1: Apply for Name Approval
To be assigned for name approval, you must submit through the “RUN Service”. The applicant can propose a minimum of 2 names in a single application.
The registrar of companies after verifying the names and if it considers that the names comply with all the regulations of the Limited Liability Partnership Act, will allow the name.
Step 2: Apply for Digital Signature Certificate
LLP online registration is entire done online, so you need a digital signature certificate shortly called DSC to sign documents online.
Every Partner as well as the Designated Partners must obtain this DSC from the authorized agencies of the Central Government.
The following documents are required to obtain the DSC
- Aadhar Card of the applicant
- PAN Card of the applicant
- Passport size photo of the applicant
Step 3: Designated Partner Identification Number
The term Designated Partner Identification Number, shortly called the DPIN, is a unique identification number assigned to all the Designated Partners of the proposed LLP.
The DIR 3 form is appropriate for obtaining a DPIN number.
The Designated Partner identification number is issued to all Designated Partners for the purpose of regulating and monitoring their activities.
Step 4: Submit Form for incorporation of Limited Liability Partnership
The next step in registering an LLP is to file the “FiLLip” form (Form for the incorporation of a Limited Liability Partnership Company) with the Registrar of Companies along with the necessary documents as stated above.
Upon filing the same, the ROC will issue the certification of incorporation of the Limited Liability Partnership.
In addition, a PAN Card would also be issued in the name of the company.
Step 5: LLP Agreement
Within 30 days of the issuance date of the LLP incorporation certification, partners must file the Limited Liability Partnership Agreement.
The agreement must be duly signed by all partners. This LLP Agreement talks about the rights, responsibilities, duties, liability of all partners and also the rules and regulations of the Limited Liability Partnership.
The main advantage of Limited Liability Partnership is limited liability, which means that the liability of the partners in the LLP is limited to the number of shares contributed by them in the company and the partners are not personally liable for losses in the business.
This means that if an LLP closes, the partners could be called upon to pay off the LLP’s debts to the extent of their equity contribution in the business; In addition, they are not required to pay the debts of the LLP with their personal assets.
This is what is called Limited Liability.
LLP is exempt from many compliances compared to a limited liability partnership.
An LLP is exempt from certain regulations, such as the appointment of an auditor, the statutory audit report, etc.
Therefore, this advantage is one of the main reasons for choosing an LLP.
To form an LLP, a minimum of 2 partners is required but there is no upper limit on members. This is the main advantage of an LLP.
For Private Limited Company, there can only be 200 members, but in LLP, there is no specific limit on the number of partners.
For a corporation, the operations of the corporation are controlled by the Law and the Company Rules, but the operation of the LLP is determined by a written agreement between the members called the LLP Agreement.
This allows the LLP to operate and manage with maximum flexibility.
The rate of taxation is less than that of other types of entities.
The members of a Limited liability partnership are taxed directly as if they had earned their share of the company’s profits by themselves.
Their tax is not associated with the amount withdrawn by the partners from the company.
- Minimum contribution not required: There is no minimum share capital prescribed as per the LLP Act.
- No compulsory audit: The Maintenance and audit of books of accounts is not mandatory if the turnover is below 40 lakhs.
- Acquire Property: As like a Private Limited Company, even LLP can acquire property in its own name.
Disadvantage of LLP company registration
- Investors: As compared with Private limited, the Joint venture and investors the, attraction is low.
- Dissolution: As compared with Partnership, the dissolution process is comparatively difficult.
What are the LLP formation procedure or LLP registration procedure
What is the difference between a Limited Liability Partnership and a Private Limited Company?
| Factors | Limited Liability Partnership | Private Limited Company |
|---|---|---|
|
Maximum number of members
|
There is no upper limit for number of members in an LLP
|
There can be only 200 members in a Private Limited Company
|
|
Minimum Paid up capital
|
There is no specific minimum paid up capital requirement for llp formation india.
|
To register a Private Limited Company, it requires minimum of 1 lakh of paid up capital
|
|
Statutory Audit
|
The Limited Liability Partnership is exempted from statutory audit till the company attains 40 lakhs of turnover
|
Every Private Limited Company has to conduct a statutory audit
|
|
Taxation
|
LLP is liable to pay 30% of tax on the gross profit
|
A private limited company is bound to pay 25% tax from its gross profit
|
|
Name of the entity
|
The name of the entity ends with the term LLP
|
The company name will end with a suffix of Private Limited
|
How to wind up or close a registered LLP
The process is not a very complex one, by submitting LLP FORM 24 before the Registrar of companies with the appropriate supportive documents, an ongoing LLP can easily be closed. The Form 24 to be submitted along with the following documents:
(a) a statement of account disclosing nil assets and nil liabilities, certified by a Chartered Accountant
(b) an affidavit signed by the designated partners
It comes under the category of company registration in Chennai
Frequently Asked Questions :-
A Limited Liability Partnership is a kind of company which is incorporated by a group of partners. It is regulated by the llp registration company or llp registration in india.
Limited Liability Partnership is the full form of LLP and it is an improved form of Partnership firm that provides liability protection for partners.
Any partnership firm can be converted into a limited liability partnership by filing Form 17 with the necessary documentation and government proofs.
Legal entities and any individual who is not insolvent, unsound or sued can become a partner in an LLP.
According to section 5 of the Limited Liability Companies Act 2008, individuals or entities can be partners in a limited liability partnership. Therefore, it has never been allowed for HUF or its Karta to be a partner of a limited liability partnership.
The registration process for an LLP is the same as for a private company. Documents such as identification documents, proof of identity, proof of address, e.g. electricity bill, consent of the building owner, or lease agreement if the company is rented.
Please contact us for more information.
No, an audit is not compulsory until turnover exceeds more than forty lakhs.
Yes, any two people can start a limited liability partnership. Even a husband and wife can begin a company with the proper deeds and documents.
A Limited Liability Partnership is a separate legal entity and as such, property can be purchased in its name.
As per the Limited Liability Partnership deed, the working partner can receive stated salary but the sleeping partner cannot get salary. The salary of the working partner is considered a deduction.
In order to appoint or remove a partner from a limited liability partnership, you first need to obtain the consent of the other partners and then amend the limited liability partnership agreement and must apply to the MCA for approval of these changes within 30 days of the amendment.
Limited liability partnership located in India and registered in RoC-Chennai
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