Say Goodbye to Confusion LLP Company Registration in India!

The business environment in India offers various business frameworks. To establish any type of business, entrepreneurs can select the right business structure according to their service. However, the most recent choice of startups, professionals, and small and medium-sized enterprises is Limited Liability Partnership (LLP). This legal business structure offers the advantage of limited liability with ownership flexibility. However, the LLP company registration can feel daunting for startups. 

In this comprehensive guide, we will explore the route of LLP registration, including how you can eliminate the confusion of LLP registration fees and processes in India. 

Understanding the Essence of an LLP Registration

Before exploring the route of company registration in India, let’s first define the importance of LLP. In India, the LLP legal structure is governed by the Partnership Act of 2008. It means it offers various advantages, including acting as a separate entity and part of a corporate body.  The “Limited Liability” feature is the most recognized and approachable. In the old partnership features, partners were liable for business debts and any other financial risks.

 As an LLP serves as a separate entity, it will not be liable for any firm’s debts and obligations. 

When registering a business as a Limited Liability Partnership (LLP), the liability of the partners is restricted. They are only accountable for debts up to the amount they have invested.

This feature is beneficial for the partner’s wealth. During the financial risks, the personal assets of partners, like a car, savings, and other things, won’t be at risk. 

Also Read: No Long Forms No Confusion Just Your LLP Started Right

Beyond limited liability, LLPs offer

Ease of Formation: As compared to the other registrations in India is easy and requires less investment to set up. Furthermore, its compliance requirements are also fewer. 

Perpetual Succession: In case the partner exits or dies, the existence of the LLP company registration won’t be affected. It will continue as it forms informally, no matter who enters. 

Flexibility in Management:  The legal framework of a liability partnership offers flexibility in management. The LLP agreement determines the duties and rights of partners. This means the partners are allowed to manage the internal structure of the business as per the agreement. 

No Minimum Capital Requirement: For the formation of an LLP company in India, there is no need to contribute the minimum capital. Most of the business structure requires strong capital, but in the case of LLP registration online, you can start with any amount. This makes it accessible for startups with limited initial funds. 

What are the eligibility criteria for online LLP registration in India?

A limited liability partnership company can be formed by anyone, but there is a requirement. The requirements are:

1. Minimum Partners: For the formation of an LLP, it must have at least two partners. There is no upper limit on the number of partners.

2. Designated Partners: An LLP company must have two partners, and among the two, one should be an Indian citizen.

3. Partner Eligibility: Any individual or part of any corporate body can join as a partner. The age of the proposed partners must be above 18. 

4. Name: The selected name must be unique and not resemble any existing company or trademark. 

The LLP Registration Journey: Step-by-Step

Following the journey of business registration can be overwhelming for you. However, having the appropriate support and guidance can facilitate a smooth registration step. In this situation, the support of experts proves more beneficial. However, understanding the steps for LLP company registration is self-practice for you. Still confused? Here are the steps for LLP registration fees and processes in India:

DSC and DIN

 Obtaining the Digital Signature Certificate is compulsory for all designated directors. It is required during the signing of the documents digitally. The Director Identification Number acts as identity proof for directors. 

Name Approval

For your LLP, choose a preferred name. To approve the name to tag it officially, submit the chosen names on the MCA’s RUN-LLP service. If the name meets the specified requirements. MCA will approve the name. 

LLP Agreement

 Draft the LLP agreement. This agreement is required to determine the duties, share of profit, and other crucial internal rules for the partners. The written agreement prevents future disputes among the partners. 

Filing with MCA

 File the important documents, including the LLP agreement. You need to submit it to the Registrar of Companies (ROC). This can be submitted via the MCA online portal.

Compliance

After the LLP incorporation, adhering to all statutory requirements is necessary to stay compliant. Must file important forms, including the annual returns. 

Also Read: From Delhi to Success Your LLP Journey Starts Here

LLP Registration Fees and Process in India: A Closer Look

A lack of understanding regarding the LLP registration fees and procedures in India can lead to significant confusion. The lack of knowledge of a particular thing creates a rough route for further processing. But, we are here to guide you on how you can plan with a minimum budget for your business company registration online. 

Government Fees: This section depends on the capital paid by the partners and paid to the Ministry of Corporate Affairs (MCA):

• Up to ₹1 lakh: ₹500
• ₹1 lakh to ₹5 lakh: ₹2,000 
• ₹5 lakh to ₹10 lakh: ₹4,000
• Above ₹10 lakh: ₹5,000

Digital Signature Certificate (DSC): The designated partner is required to obtain the DSC. To secure a DSC, you need to pay around Rs 2,000 to 4,000 per partner.

Consultant Fees: Generally, the cost of professionals is around Rs 4,000 to Rs 9,000. However, it can be increased; it depends on the service and the complexity that comes with registration. 

Stamp Duty: This section cost can range from Rs 500 to Rs 5,000. But it depends on the state.

Name Reservation: To reserve your limited liability name, you need to pay around Rs 200.  

Note: The business registration as a limited liability partnership generally takes 15-20 days. However, the process also depends on the documentation and the government’s processing timeline. 

Compliance Requirements for LLPs Post-Registration

Getting the certificate for a limited liability partnership is not the end of compliance. The business needs to comply with the LLP post-compliance. On the other hand, compared to a private limited company, the compliance requirements for a limited liability company are fewer. It is required to avoid hefty penalties. The post-compliance requirements are:

LLP Agreement filing	Within 30 days of company incorporation, filing the LLP agreement with the ROC is mandatory. Use Form 3 for agreement filing.
Bank Account Opening	To manage the financial records of a registered limited liability company from personal wealth, open a business bank account.
Annual Returns and financial records	Annual return filing is a mandatory requirement for all businesses. It can be filed in Form 11 with the ROC. The financial statements, like bank account details and the solvency file in Form 9, are filed with the ROC.
Income Tax Return	All registered LLPs must file their income tax return. To file the return annually, you need to use the Form ITS-5
Maintain books of account	According to the LLP Act, 2008, maintaining the bookkeeping of accounts is mandatory for all registered businesses.

Conclusion: Embracing Clarity in Your Business Journey

For startups and early-stage businesses, navigating the framework of company registration in India can feel daunting and more complex. However, the business landscape of an LLP is easy and beneficial. You can confidently start your company registration journey by understanding the different features of limited liability partnerships, including LLP registration fees and processes in India, and fulfill the post-registration compliance. The legal structure of an LLP offers flexibility for company management, which is important to focus on growth and innovation. Say goodbye to the complexities and start your dream business journey with your partners. 

FAQ | Free Company Registration in India

1. How do I cancel my LLP registration?

Ans. File the LLP Form 24 with the ROC to cancel the limited liability partnership (LLP) registration in India.

2. What is the notice period for an LLP meeting?

Ans. Following Rule 170, it is required to notify the partners or creditors at least 14 days before the meeting.

3. Is a digital signature compulsory for LLP formation?

Ans. Yes, for the LLP registration, you need to obtain a digital signature certificate to sign documents digitally.

4. Is GST required for LLP?

Ans. No, the GST registration is not compulsory; however, it depends on the turnover condition.

5. Can an LLP company transform into Section 8?

Ans. No, under the Companies Act, 2013, the LLP is restricted from converting into a Section 8 company.