LIMITED LIABILITY PARTNERSHIP

UNDERSTANDING LIMITED LIABILITY PARTNERSHIP

llp registration in bangalore

Limited Liability partnership refers to LLP as a form of corporate business owned by several individuals. Registration of LLP companies is governed by the Limited Liability Partnership Act 2008.

It is a corporate business entity that enables a partnership between the business partners wherein their liabilities are proportional to the amount with which they venture into the business respectively. This implies that each of the partners in business is not held responsible for the other’s actions or wrongdoings. All partners together share the profits and losses generated by the business.

While partnership firms registration in bangalore has been in practice for ages, registration of LLP in India is initiated mostly by new players in the corporate sphere.

LLP registration in India usually does not require general partners where all business owners have unlimited liability. Here, all partners are actively involved in the running of the business with restricted liability.

LLP COMPANY REGISTRATION IN INDIA

The liability of the members is limited in LLP firms. In the case of LLP, there should be at least two partners involved, where there is no minimum limit of capital investment and one must be a resident of India i.e. he/she must be staying or have stayed for 182 days in India. LLP company registration in Bangalore with Mibook can be done conveniently and is usually done for the small type of businesses in India. However, an LLP due to its nature does not permit to issue of equity shares, thus it cannot raise money from the general public. With the help of our efficient registration services at Mibook, one can get their LLP company registered within a short span of time.

In order to register an LLP company in India, one must first apply for a Designated Partner Identification Number (DPIN). This can be done by filing an eForm for acquiring the DIN or DPIN.

After this, a person needs to get the Digital Signature Certificate and register the same on the portal. Once the LLP company name is approved by the Ministry one can register the LLP company by filling out the incorporation form.

The minimum requirements for LLP registration in Karnataka with the help of Mibook

The LLP should be working with a minimum of two partners

At least one of the partners must be an Indian citizen and should be living in India

The registered office of the LLP firm must be located in India

llp registration in bangalore

WHY YOU SHOULD REGISTER A COMPANY AS LLP

llp registration in karnataka

The most significant advantage of LLP registration in Bangalore is that it forms a corporate entity for which lesser compliance requirement is imposed. That’s why these days it is more preferred over other Pvt Ltd companies. An LLP is considered a separate corporate body and enjoys its own legal rights. Due to its nature of limited liability, the partners are not liable to the company’s lenders individually.

Also, an LLP company registration in Bangalore done appropriately with the assistance of Mibook allows the company to continue to function after the death of its owners or even if the owners decide to quit. This means the functions and company rights of an LLP can be reassigned to another person or legal entity. The LLP by itself can sell, acquire, or transfer its property or assets in its name. This renders the LLP with separate ownership rights from its members.

Maintaining accounts for companies registered as LLP is comparatively easier as there is no mandate to conduct an audit in case of a turnover lesser than 40 lakhs and a contribution lesser than 25 lakhs. All the consultation related to the formation of the LLP company is provided at your convenience exclusively at Mibook.

ELIGIBILITY CRITERIA FOR LLP REGISTRATION IN BANGALORE THROUGH MIBOOK

Minimum 2 designated partners who are individual

Maximum number of partners - no limit

One designated partner must be a Resident Indian

Minimum capital: at the choice of partners

DIN of the designated partners (if available)

Digital Signature of designated partners

llp company registration in bangalore

REQUIRED DOCUMENTS FOR LLP REGISTRATION IN KARNATAKA

llp registration in bangalore

BY DIRECTORS & SHAREHOLDERS

1. PAN Card
2. Voter Id / Aadhaar Card
3. Driving License / Passport
4. Latest Bank Statement / Mobile Bill
5. Passport Size Photograph

FOR OFFICE ADDRESS PROOF

1. Rental Agreement (In English)
2. No Objection Certificate
3. Electricity Bill
4. Sale Deed / Property Deed
5. Tax Paid Receipt ( In case of own property )

THE PROCESS FOR LLP REGISTRATION IN BANGALORE THROUGH MIBOOK

Day 1 - 2

Application for Digital Signature Certificate

Day 3 - 5

1. Checking LLP Name availability
2. Application for Name Reservation under “LLP-RUN”
3. Reservation of LLP Name

Day 6 - 10

1. Drafting the LLP incorporation document
2. Filing application for LLP registration
3. Application for DIN allotment of Designated Partners
4. Certificate of LLP Incorporation

Day 11 - 14

1. Application for PAN and TAN of LLP
2. Drafting of LLP Agreement

Day 15 - 18

1. Drafting the LLP incorporation document
2. Payment of Stamp Duty
3. Filing of LLP Agreement
4. Government processing time

ADVANTAGES OF LLP COMPANY REGISTRATION IN BANGALORE BY MIBOOK

Ease of Incorporation:

While accomplishing the registration for LLP companies there are fewer guidelines and protocols that need to be observed which makes this the most sought corporate entity. The policies with regard to annual meetings, board meetings, legal compilation, etc are quite minimal.
Considering the cost of LLP company registration in Bangalore is comparatively economical as to incorporating a public or a private limited company.

Tax Benefits

The major advantage when it comes to an LLP registration in Karnataka is that while being treated on par with partnership firms, the LLP is liable to pay the tax while the partners of the LLP firm are not liable to pay the same. Dividend distribution tax is thus not payable in the case of an LLP. ‘Deemed dividend’ is therefore not relevant with respect to LLP firms. Various expenditures incurred during the course of the business such as payment of salary to the partner's other remuneration like a bonus, etc are sanctioned as deductions. Also, the dividend distribution tax which is levied on companies is not applicable in the case of an LLP firm when the partners withdraw the profit from the company.

The number of owners is not limited

An LLP company registration requires a minimum of 2 partners but there is no such set limit on the maximum number of partners. Whereas in a private limited company there are restrictions on having more than 200 members.

Lower registration cost:

The cost incurred on registration of an LLP company in India is comparatively lower than that of incorporating a public limited company or a private limited company. You can get your LLP company registered in Karnataka with our assistance at a very low cost, so get yourself signed up with Mibook Small Business Accounting App asap.

No requirement for compulsory audit

Whether the company is Public or Private irrespective of its share capital is expected to get its account audited. But here in the case of LLP company registration, there is no such mandatory requirement and this is considered to be one of the significant compliance benefits of forming an LLP. A Limited liability company is supposed to get its audit done only in two cases:
When the contribution of LLPs exceeds Rs.25 lakhs or When the annual turnover of LLPs exceeds Rs.40 lakhs.

No requirement for a minimum contribution

As an LLP firm can be formed with the least possible capital, there is no minimum capital requirement in the incorporation of an LLP firm.

Comparision

llp company registration in bangalore

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Frequently Asked Questions

An individual or corporation is a partner in a Limited Liability Partnership (LLP) who has subscribed to the “Incorporation Document” at the time of incorporation of LLP.
In LLP minimum of 2 designated partners are mandatory who are 18 years old or above and among these 2 partners, 1 must be resident in India who has resided in India for 180 days during the preceding assessment year.
An individual or a company or a foreign national/NRI who wants to become a partner of an LLP must have been residing in India.

If you are willing to convert your existing Partnership firm into LLP then the procedure for the same must be followed as per Section 55 of the Limited Liability Partnership Act 2008. Which defines that:
    - For successful conversion of a partnership into LLP, all existing partners of the partnership firm will only become the partners of LLP.
    - Your partnership firm that needs to be converted must be registered under the Partnership Act, 1932.
    - All existing partners must be convinced to become a part of LLP. If someone is willing to leave the firm then the same must be done once the partnership firm is converted into LLP.

Yes, Foreign Direct Investment (FDI) is permitted in LLP. Considering the fact that LLP has an appropriate form of structure the Government of India and RBI have introduced provisions for FDI in LLP. To enhance the conditions of loans that are taken by LLP RBI has lowered the strictness in the rules for LLP.
But there are set conditions that must be fulfilled to become eligible for Foreign Direct Investment. The eligible investors and the forms of funds who can invest into LLP are taken into consideration also the residence status of an individual or company is considered.

Approximately the complete process for LLP company registration in Bangalore takes 15-18 working days. The registration can be done on the Government portal which requires filing various forms and submitting the eligibility documents.
Once the documents are submitted and the registrar finds all the details accurate and relevant as per LLP Act, within 14 days of filling the Form-2 the registration for LLP is completed.
After this, a certificate of Incorporation in Form-16 is issued. The status of the application can be checked by logging into the official Government portal.

A minimum of 2 partners are required to start the LLP firm. There is no limit on the maximum number of partners. To meet the eligibility criteria for LLP registration there should be at least 2 designated partners who shall be individuals and among these 2 one should be a resident of India.

Yes, the government of India charges a fee from an individual or entity to register the LLP firm. The total amount of the fee is charged stepwise during the registration process.
- Initially at DSC level Rs. 1500-2000 is charged for 2 partners.
- To acquire DIN Rs. 1000 for 2 partners is charged.
- For Name reservation Rs. 200 is charged.
- At the time of Incorporation the fee amount depends on capital contribution which is Rs.500 for Rs. 1 lakh capital, Rs.2000 for Rs. 1 lakh and 5 lakhs capital amount.
- At the time of the LLP agreement, the fee amount depends on the capital contribution which is Rs. 50 for capital up to Rs. 1 lakh.
- The stamp duty charges are based on the state where LLP is incorporated.

You must file your LLP firm’s ‘Annual Return’ within 60 days from the end date of the respective financial year.
The ‘Statement of Accounts & Solvency’ needs to be filed within 30 days of the end date of six months of the respective financial year.
Every LLP firm has to maintain proper books and records for a uniform financial year ending on 31st March of a year.
To maintain proper books of accounts and file annual reports with the ROC annually LLP has to elect the partners for the same.

As of now, there is no provision for the registration of an LLP in Karnataka with a Virtual office address but there are plenty of service providers who can give you an address at the time of registration of LLP.
By ROC it is not allowed to register LLP with a Virtual address however one can go for shared space for a time being. This is the best option if an individual or entity wants to run a business online as ROC only needs a physical location at the time of registration where the concerned person of LLP can be contacted.