A LLP is blend of partnership and company. Legally it is another corporate structure entity which gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP has its independent existence from its partners and is capable of entering into contracts and holding property in its own name.

Due to its dynamic structure, an LLP has many benefits as listed below: Simple Registration Process Limited Liabilities of the Partners Separate Legal Existence Fewer Compliances Unlimited partners An Audit is not Mandatory Flexibility Partners are not agents of other partners

The formation of an LLP requires two designated partners with their Directors’s Identification number (DIN) and an active Digital Signature Certificate (DSC). An appropriate name of LLP and objects of LLP need to be finalised. A constitutional document by way of LLP deed shall be executed among the partners. There is an online LLP registration process. It is registered with the MCA. At the time of incorporation, stamp duty has to be paid. Such stamp duty is paid to the state in which the registered office of an LLP is situated. The amount of stamp duty is decided on the amount of capital contributed at the time of incorporation and as per the state’s stamp duty Act. The process of registration is as under: Application for Digital Signature Certificate Reservation of LLP Name Filing of incorporation form along with DIN Application Application for PAN & TAN Filing of LLP Agreement

An LLP can be formed with Companies House in 3-6 working hours (depending on how busy Companies House is) by using the online services of a company formation agent.

Any individual or body corporate may be a partner in an LLP. However, an individual shall not be capable of becoming a partner of an LLP, if— (a) he has been found to be of unsound mind by a Court of competent jurisdiction and the finding is in force; (b) he is an undischarged insolvent; or (c) he has applied to be adjudicated as an insolvent and his application is pending

DIN is a Director Identification Number. It is a unique number provided to an individual to become a designated partner in LLP or a director in a company. If a person has DIN then he can become a designated partner easily. Otherwise, DIN shall be allotted by MCA at the time of incorporation of the LLP. Following documents are needed for the application of DIN. PAN Identity proof (Passport/Election card/Driving License) Address proof (Bank Statement/Electricity bill/Mobile Bill- not older than two months) If any of the partners is a foreigner, then the passport is mandatory and all the documents must be apostilled. If there are changes in any information relating to the partners such as an address, name, etc. then it must be communicated to MCA in a specified form within 30 days.

Digital Signature Certificate for partners is provided in the form of a token and issued by Certified Authorities. Any form filed for incorporation of Limited Liability Partnership (LLP) in India online shall be submitted after affixing the DSC of the designated partner.

To register an LLP in India, the following documents/details are required: PAN Card of the Partners Identity and Address Proof of the Partners Utility Bill of the proposed Registered Office of the LLP No-Objection Certificate from the Landlord Rental Agreement Copy if the place is rented. Email ID and mobile number of Partners Qualification of Partners

No. There is no minimum amount prescribed to form an LLP in India. It can be started with any amount of capital demanded by the business. Although there is no minimum requirement, every partner must make a contribution financially to form LLP. The amount of capital contribution is disclosed in the LLP Agreement and amount of stamp duty is decided by the total contribution amount.

Yes, a Limited Liability Partnership registered in India can carry on more than one business subject to their relevancy. The activities must be related or in the same field itself. Unrelated activities such as Interior Designing and Legal consultancy cannot be carried under same LLP. At the time Name Reservation, the draft object clause is attached for ROC approval and the same approved object clause is attached with the agreement and filed with ROC.

Every LLP has to comply with the post-registration compliances. If such compliances are not followed then LLP shall be liable for penalties. After incorporation, the LLP must open a current account in the name of the LLP and the partners have to deposit the capital contribution as agreed. Following are the mandatory annual compliances for an LLP. Filing of Annual return with MCA Filing of statement of accounts and solvency with MCA Filing of form DIR-3 KYC for all partners with MCA Filing of Income tax return

An LLP is taxed at a flat rate of 30% alike a partnership firm.

Foreign Direct Investment is allowed in an LLP under the automatic route. FDI is allowed in the case where the LLP carries on business activities in sectors, where 100% FDI is allowed through automatic route. Further, an LLP must comply with the RBI provisions and file necessary forms.

Yes, any existing partnership firm registered or unregistered can be converted into an LLP by filing necessary documents and forms with the authority. Yes, Registered LLP can be converted into Private Limited Company by filing necessary documents and forms with the authority. Yes, Private Limited Company can be converted into LLP by filing necessary documents and forms with the authority.

Both LLP or PLC offers limited liability protection to owners of the entity. Both have perpetual existence. However, in terms of compliances, LLP offers a more lenient trajectory. Private Limited Company carries more weightage in terms of credibility in the eyes of stakeholders as they are governed more strictly by statute. Audit is compulsory for PLC whereas in case of LLP, audit depend upon its turnover and capital. PLC offers a very convenient form when there is foreign direct investment of divestment of company to an investor. Tax treatment for both are different. PLC has a lower tax regime as comparted to LLP however the mode of tax calculation is different.

An LLP can be closed in two ways. By declaring an LLP as defunct Voluntary winding up