Here's A Detailed Step-by-Step Guide of LLP Registration Process in India
LLP is defined under the Limited Liability Partnership Act of 2008, under section 2(1)(n). Since LLP offers more flexible compliance to business owners or partners, it is the first choice of new startups & businesses in India. The concept of LLP is very recent & started in 2008 in India under the Companies Act 2013.
Recently, the Indian Govt, with the Ministry of Corporate Affairs, has digitalized the registration process for LLP. Under the MCA V3 Portal, the entire LLP registration can be handled digitally with an e-filing interface & real-time status tracking system.
For any founder looking to register an LLP in Bangalore, this article guides you with by step-by-step process of LLP registration.
What is the Process of LLP Registration in India?
Step 1 – Obtain a Digital Signature Certificate (DSC)
The designated partners of the proposed LLP should obtain a DSC for all document-filing purposes. As document filing is done online every time, DSC is compulsory for all partners.
Actax India makes the process easier by taking care of getting a DSC for designated partners from certified agencies. The price for DSC varies depending on the service providers. You should obtain a Class 3 DSC.
You can also contact our team to get a Digital Signature Certificate.
Step 2 – Get Director’s Identification Number (DIN)
You should apply for DIN for all the designated partners of the proposed LLP. You’ve to apply for DIN using the DIR-3 Form. You’ve to attach a few documents (ID Proof/PAN Card/Address Proof) & you can use the same DIN to get appointed as Director for other companies.
Step 3 – Get Your Company Name Approved for an LLP Firm
Reserve a Unique Name for Limited Liability Partnership (RUN-LLP). Under this, you have to reserve unique names for your LLP business. The name approval process is carried out by the Central Registration Centre (CRC). It is recommended to check the name availability for your new firm by using the Check Company Name tool provided by MCA.
You can provide 6 names for your LLP registration in the Name Approval Process. CRC checks for availability based on other factors & allows you to suggest a name. If it is rejected, you’ll be given 14 days to rectify & reapply for Name Approval.
Government Fee for Name Registration of LLP
- If the contribution is Less than INR 1,00,000 – ₹ 500/-
- If the contribution is between INR 1,00,000 to 5,00,000 – ₹2000
- If the contribution is between INR 5,00,000 to 10,00,000 – ₹4000
- If the contribution is more than ₹10,00,000, then the fee is ₹5000.
Step 4 – LLP Incorporation Using FiLLiP
Using FiLLiP (Form for Incorporation of Limited Liability Partnership), you can apply for the incorporation of an LLP. This form (Form 2) is filed by the registrar whose jurisdiction is the place of incorporation. The name approved in the Name Approval stage is used for the same. The FiLLiP is an integrated form & the fee to file the form is as per ‘Annexure A’.
Step 5 – Receive the Incorporation Certificate & LLPIN
After completing step 4, after all the approvals are done, you will receive an Incorporation certificate & LLP Identification Number (LLPIN), which certifies you as a legal entity in India. This document acts as business proof thereafter.
Step 6 – Draft & File LLP Agreement
Within 30 days from the Date of Incorporation, you are required to file the partnership agreement on the MCA Portal using Form-3 online. The Partnership agreement governs all mutual rights & duties of designated partners & between LLP & partners. The stamp duties to file Form 3 differ for different states.
Step 7 – Post Registration Apply for PAN, TAN, Bank Account & GST
After successful completion of the registration process, you have to apply for PAN, TAN with NSDL, which is used to authenticate financial transactions & payroll. These are the essential documents for any business entity in India.
With the help of PAN, you can open a Bank account quickly with any nationalised bank. GST is not mandatory to register for all businesses. Check your eligibility for GST here, if your busniess meets the criteria defined, apply for new GST registration with the local GST authority.
Register Your LLP in Bangalore with Complete Guidance
What are the Benefits of Registering LLP in India?
Registering a firm as an LLP consists of loads of advantages. Here are a few that help you to decide about the requirements of LLP for your business operations.
1. You Protect Your Personal Assets
Any business loss or damage shall not harm your possessions. The liability is limited only to each partner according to his/her shares.
2. Decision & Partnerships Are Governed by LLP Agreement
The entire LLP is ruled as per the terms & conditions agreed in the partnership agreement, which is filed with the MCA during incorporation.
3. Flexibility in Profit Distribution
The distribution of profits among the partners in an LLP firm is decided upon by the partnership agreement.
4. No Minimum Investment Required to Start Business
There is no mandatory or compulsory rule by the Corporate Ministry on contribution or investment. You can start with as low as a low investment.
5. LLP Runs on Only 2 Compliances Per Year
If you set up an LLP in India, it requires only 2 annual compliances to be filed.
- Filing Annual Return by May 30 of every year.
- Filing the Solvency statement by October 30 of every year.
Register your LLP as A startup under the Startup India Programme to get various benefits from the government.
Start LLP Registration by Consulting Experts in Bangalore
These major & simple processes of incorporating LLP in India give you the basic knowledge & understanding. Many experts in the market help you in incorporating LLP, but our concern is to provide a strong refinement of the process & make it streamlined for future benefits. Consult experts & understand clearly the Pros and cons of LLP formation in India.
Our Actax Experts help you with proper consultation & guidance based on your business model, we suggest the right business structure to choose, & then help you register your business in India.
Do You Want Actax to Help You Get LLP Registration?
Frequently Asked Questions
Are payroll outsourcing companies in Bangalore good for small businesses?
Yes. Actax India and other companies like it help startups and small and medium-sized businesses by providing scalable solutions and systems that are easy to use.
What should I look for in a payroll outsourcing company?
To select, make sure they can handle PF, ESI, TDS, professional tax, are scalable, give updates on compliance, and have clear pricing.
What is payroll outsourcing, and why should I use it?
Outsourcing payroll means hiring a third party to handle things like processing paychecks, filing taxes, and following the law. It saves time, cuts down on mistakes, and makes sure the law is followed.
Can outsourcing payroll help teams that work from home or around the world?
Yes. Actax India and ADP India help employees who work from home or from other countries by making sure they follow Indian laws.
