Limited Liability Partneship CFO Horizon
Looking for Limited Liability Partnership (LLP) Registration for Your Business?
While we call you, get some insights into what you are getting into.
At CFO Horizon, we provide comprehensive accounting and compliance services designed to empower Limited Liability Partnership firms like yours to thrive and succeed
Decoding Limited Liability Partnership
- The 2008 Limited Liability Partnership Act introduced LLP in India. LLPs were created to provide a simple business entity with limited liability for owners. Over 1.2 lakh Indians have registered LLPs since 2008.
- LLPs are among India's easiest to form and manage. Professionals, micro, and small family-owned or closely-held businesses prefer LLPs due to their easy incorporation and compliance requirements.
- LLPs cannot issue equity shares, so businesses seeking equity funding from Angel Investors, Venture Capitalists, or Private Equity Funds should not use them.
- The Ministry of Corporate Affairs, Central Government, registers LLPs in India. The State Government controls the Registrar of Firms, which registers partnership firms.
Important Features of LLP - Know the Facts
Limited Liability Protection
LLPs are better than traditional partnerships because it is considered a juristic person. LLP owners have limited liability for the LLP’s debts. Unlike private limited company shareholders, LLP partners can directly manage the business.
Number of Partners
LLPs and Partnership Firms need two partners to register. LLPs can have unlimited partners after incorporation. It dissolves if a partnership firm loses a partner due to death, incapacitation, or resignation. If the number of Partners drops below 2, the sole Partner can find a new Partner without dissolving the LLP.
Fundraising
The process requires minimum fees and very little paperwork, but the process varies depending on the country, state, or province of residence.
Non-Resident Indian (NRI) & Foreign Ownership of LLP
Post changes to FDI regulations on 10th November 2015, 100% FDI in LLP is permitted under the automatic route. Therefore, FDI in LLP is now allowed, and NRIs or Foreign Nationals can start or invest in an LLP.
Benefits of LLP
Separate Legal Entity
LLP is a separate legal entity from partners. Each partner can sue the other in case a situation arises.
Continuity
It has an uninterrupted existence that follows perpetual succession, i.e., the partners might leave, but the business remains. A term of dissolution has to be mutually agreed on for the firm to dissolve.
Flexible Agreement
Transferring ownership of LLP is also simple. A person can quickly be inducted in as a designated partner, and ownership switches to them.
Suitable For Small Business
LLPs with capital less than 25 lakhs and turnover below 40 lakhs per year do not require any audits. It makes registering as LLP beneficial for small businesses and startups.
Acquire Property
An LLP can own or acquire property because it is considered a juristic person. Partners of LLP cannot claim the property as theirs.
No Owner / Manager Distinction
Partners own and run LLPs. Unlike a private limited company, directors and shareholders may be different. VCs avoid LLPs for this reason. Partners and LLP are separate legal entities. If necessary, each partner can sue.
Basic Registration Process of LLP
Step 1:
Obtaining DSC And DIN
Step 2:
Application For Name Approval
Step 3:
LLP Agreement to be obtained within 30 Days of incorporation
Step 4:
LLP Incorporation Certificate
Step 5:
Apply for Your PAN, TAN, & Bank Account
Online Registration Process
(1) Select the package that suits you.
(a.) list of services purchased.
(b.) documents to be submitted or next action.
(2) Once documentation is complete, you will be informed about the next steps through email and SMS, and you can also check the current status of your request in your personalized dashboard.
(3) Make a payment, and you will receive your personalized dashboard login and password.
(4) During the process, if you have any queries, you can raise the query through the Helpdesk system in your dashboard, and we will be happy to help. We can also have a call if required.
(5) At each step, our team will share all the information you need and ensure that you have a smooth experience with us.
(6) Once you submit the required documents, our Compliance Manager will review them and contact you in case of any discrepancies.
Key Registration Services: Tailored to Your Needs
Each LLP differs in terms of the functions and mode of operations. The below registrations will be applicable on a need basis.
01
MSME Registration
MSME or Udyog Aadhaar registration will be obtained in the business’s name to establish that the Partnership is registered with the Ministry of Micro, Small, and Medium Enterprises.
02
Import Export Code
The Import Export Code or IE code is obtained from the DGFT if the LLP business exports/imports from India.
03
TAN Registration
TAN registration must be obtained for LLP from the income tax department if the partnership firm must deduct any TDS while making any payments as per the Income Tax Act 1961.
04
Shop & Establishment
License Registration of Shop & Establishment license if needed as per the criteria.
05
PAN of LLP firm
We will apply PAN for the newly constituted LLP.
06
Current Account
A current account can be opened for LLP at any bank in India.
07
FSSAI Registration
In case the LLP is involved in selling or handling food products, FSSAI registration must be obtained from the Food Safety and Standard Authority of India in the name of the LLP.
08
GST Registration
GST registration must be obtained if LLP sells goods or services that cross the GST turnover threshold limit for registration. In most states, GST registration is required for service providers having annual revenue of more than ₹20 lakhs and, in the case of traders – yearly revenue of more than ₹40 lakhs.
Too Much Information to Process!!!
Applicable Taxes and Annual Compliance
(1) GST Return Filing
(2) Income Tax Return Filing
(3) TDS Return Filing
(4) Tax audit as required by the Income Tax Act,1961
(5) Preparation of Financial Statements
(6) LLP has to make self-assessment tax based on profit
(7) MCA Annual Return- LLP Form 8 & 11
(8) DIN KYC of Partners
The entire process will take 7 to 10 days (Approx)
Documents To Be Uploaded
For Partners:
For the Registered Office:
Note: One partner must self-attest the first three documents. For foreign nationals or NRIs, all the documents must be notarised (if currently in India or a non-commonwealth country) or apostilled (if from a commonwealth country).
How to Get Started with LLP?
Fill Form
Simply fill out the above form to get started.
Make Payment
No additional compliance in most cases
Our Expert Will Start the Process
Our expert will connect with you & advise on documents.
Why CFO Horizon?
Startup Friendly
10k Business Registration & Counting
Affordable & Transparent
No Hidden Fee
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On-Time Deliver
We value time and hence would never miss a deadline
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100% Confidentiality
We maintain a high level of confidentiality of client information & information security management.
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Our 20 Years of Experience Says
Companies that focus more on their business and outsource the Financial liabilities to us are more successful than those who went DIY.
Let CFO Horizon do what we’re good at, and You do what you are good at!