✆   Helpline : +918979189212

Company Registration

Company Registration Made Easy

Start your business journey with our streamlined company registration process. We offer comprehensive packages to suit your needs and budget.

Our expert team ensures a smooth and hassle-free registration experience.

LIMITED LIABILITY PARTNERSHIP (LLP) APPLICATION FORM

We are in an age where more and more startups are evolving and expanding. As more people are taking up entrepreneurship roles, the present rigid structure of the companies might become too much for them to manage. Due to this growing demand, there is a need for a more flexible structure where companies can thrive properly.

What is meant by a Limited Liability Partnership Company?

Limited Liability Partnership companies are a great combination of private companies and Partnership firms. Their business structure is a derivative of the benefits of the Private and the Partnership companies and is much suitable when it comes to the ease of business doing. The LLPs serve as an alternative business entity and function by mutual agreement between the partners. However, any single partner cannot be held accountable for the poor conduct or negligence of the other partners.

Structure of LLP

Limited Liability companies provide more protection to the partners and there is no liability on them. These firms make the partners immune from facing any personal liability in cases of debts, misconduct, or any wrongful acts, and the owners are held liable only up to their investments.

Requirements of LLP Registration

How to Register a Limited Liability Company Online With FilingLounge?

Documents Required for LLP Registration

Advantages of A Limited Liability Firm

Advantages Diagram
LLPs are flexible

Limited Liability firms offer flexibility in tax payment. Income is taxed at the individual level, not at the company level. If members opt for partnership taxation, income is distributed among them, showcasing LLPs' flexibility.

LLPs are organized

These partnership firms are well-organized and structured, functioning based on an agreement between members.

Easy to incorporate

Limited Liability Partnership firms have a low cost of incorporation and are simple to set up.

Protection to the partners

LLPs operate as separate entities, ensuring partners are not personally liable for other partners' debts or business mishaps.

No specific minimum capital

LLPs do not require a specific paid-up capital, allowing owners the freedom to start with any amount.

LLPs are freer in operations

LLPs are subject to fewer legal restrictions and face fewer compliance requirements.

No mandatory audit

LLPs are not required to undergo audits unless:
- Capital exceeds Rs. 25 lakhs, or
- Annual turnover exceeds Rs. 40 lakhs.

No restriction on the number of partners

LLPs must have a minimum of 2 partners, but there is no maximum limit on the number of partners.

LLP is the sole entity

LLPs have independent legal status, ensuring operational continuity regardless of changes in partnership.

What Is The Difference Between a Limited Liability Partnership Firm and a Traditional Partnership Firm?

The Documents Required For Registering A Private Limited Company

   The following list of documents are required when an individual stakeholder is applying for registration of a private limited company:    In case the Company is a corporate body and the stakeholder is not an individual, the following list of documents are required:

Note: The documents have to be self-attested copies and should be properly scanned. Also, all the bills should not be older than two months.

The Pitfalls of Registering a Private Limited Company

Conclusion

Limited Liability firms are indeed life saviors if you are willing to get into an agreement-based business. Filing Lounge is an excellent portal. if you are want regular update, follow our Facebook page for more information on different kinds of businesses.

Frequently Asked Questions On Limited Liability Partnership Firms

1. Which other countries follow the LLP structure?

LLPs are famous in countries like the United Kingdom, United States of America, Australia, Singapore, and Gulf nations.

2. Is LLP different from a company?

Yes, LLPs are more flexible and have fewer requirements than joint stock companies. Also, the LLPs are managed and governed by the partnership agreement among the partners, while joint companies are regulated by the Companies Act, 1956.

3. Can people of foreign origin constitute an LLP?

Yes, people of foreign origin, including foreign nationals or companies, can form an LLP in India on one condition: that one of the partners should be an Indian National.

4. What happens if the minimum number of partners is reduced?

If, for any reason, the minimum number of partners falls below two, and the business continues for another six months, then the single person or the owner shall be held accountable for any obligations.

5. Can an LLP file for an annual return?

Annual returns must be filed by LLPs in Form 11 with the Registrar of Companies (ROC) within 60 days of the closure of a financial year. The returns will be available for public inspection only after deposition of the specified fee with the ROC.

6. How can a partner cease to be one in an LLP?

Any existing partner can cease to continue with the firm by giving prior notice to the ROC before 30 days. However, the person can cease to discontinue their partnership in the following cases:

  • On their death or discontinuation of the LLP
  • If the person is declared incapable of managing business by a court
  • If they have been declared bankrupt
7. Can an existing company be converted into an LLP?

Yes, definitely. By complying with the provisions of Clause 58 and Schedule III and IV of the LLP Act, an existing company may be converted to an LLP. Also, Form 18 and Form 2 need to be filled out.

8. What suffix is added to LLP firms?

LLP firms have to add the suffix “Limited Liability Partnership” to their name.