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Getting An Insight Of LLP Registration Process In India

 September 2, 2014  /  Comments Off on Getting An Insight Of LLP Registration Process In India

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Limited Liability Registration (LLP) is a unique form of business in terms of simplicity of a partnership firm and advantage of a limited liability. Minimum two persons can form an LLP without any maximum limit of partners. It is one of the most successful firms that have showed huge success in quick time. Some of the noteworthy service providers in India offer world-class LLP registration services, thereby helping to give effective results in your business since its inception.

Limited Liability Partnership concoctions the benefit of company and partnership into one organization with low compliance cost. Before making a final decision on whether you should integrate a LLP for running a business, first take a glimpse into pros and cons of this legal entity:

Benefits

  • The procedure of registering it is quite simple with less number of formalities.
  • The liability of partners is limited to their agreed contribution in the LLP.
  • There can be any number of partners
  • The minimum government fees for incorporating it is Rs 800 and maximum Rs 5400
  • No matter any changes occur in the partners of LLP, it remains the same entity with same estates, immunities and possessions.
  • It is not required to pay any surcharge or tax.
  • It is easier to become or leave the partnership or else it is easier to transfer the ownership in compliance to the LLP agreement.
  • It can sue its name and be sued by others.

Limitations

  • No partner can act without consulting another partner
  • It is not permitted to raise money from public
  • There is no provision of converting LLP into a Private Limited Company

Getting An Insight Of LLP Registration Process In India

LLP Registration Process:

The basic requirements for registering a LLP in India are:

  • At least 2 partners are required
  • DPIN (Designated Partner Identification Number) for all Designated partners
  • DSC (Digital Signature Certificate) is needed
  • Address proof & ID proof
  • Address proof of proposed registered office for registration of company

The steps to register a LLP are as follows:

  • Getting DSC for all designated partners for digital authentication of the forms.
  • Getting DPIN is a pre-requisite for incorporation of a LLP
  • Name availability and draft Object clause
  • Filing of forms for name approval to the concerned ROC (Register of Companies) where the client’s registered office is going to be established.
  • Incorporation of a company
  • Filing forms after drafting and executing agreement between the partners

Limited Liability Partnership is considered as Partnership firms for income tax purpose, therefore taxed as a partnership firm under the Income Tax Act, 1961. Following are the tax rate details :

  • 30% flat tax rate + 3% education cess
  • No surcharge
  • No Dividend Distribution Tax
  • No wealth tax applicable

Advantages of LLP Over Other Companies:

Given below are few niceties of LLP in comparison to other companies:

  • No capital requirement unlike others.
  • Statement of Accounts and Solvency can be signed by partners if turnover is less than 45 lakhs and capital contribution less than 25 lakhs, no separate Auditor is needed.
  • Income Tax is charged at the rate of 30.9%, lowest amongst all other companies’ tax charges.

About Bizincorp.in: With the support of advanced tools andexpert professionals, India’s highly reputed service provider caters you with a comprehensive range of business registration, LLP registration and other quality services across the country.

Visit our website www.bizincorp.in for more information.

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