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.
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
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.
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
1. PAN Card
2. Voter Id / Aadhaar Card
3. Driving License / Passport
4. Latest Bank Statement / Mobile Bill
5. Passport Size Photograph
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 )
Application for Digital Signature Certificate
1. Checking LLP Name availability
2. Application for Name Reservation under “LLP-RUN”
3. Reservation of LLP Name
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
1. Application for PAN and TAN of LLP
2. Drafting of LLP Agreement
1. Drafting the LLP incorporation document
2. Payment of Stamp Duty
3. Filing of LLP Agreement
4. Government processing time
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.
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.
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.
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.
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.
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.