Limited Liability partnership (LLP) Registration

The limited liability partnership (LLP) Registration has become most preferable form of organization Among young entrepreneur due to its double benefit of Partnership firm and Company into one form of organization. LLP came into existence after January 2009. And Governed under Limited liability Partnership Act 2009. And the best part of LLP Registration is one partner is not responsible for misconduct of other partnership.

Overview

Different between Limited liability Partnership and Private Limited company.

S. No.Factors of comparisonPrivate limited companyLimited liability partnership
1.Maximum number of members200None
2.Requirements for complianceAnnual return filling borad meetings and general meetingsAnnual return filling and Statement of Account & Solvency.
3.AuditcompulsoryOnly if contribution more than Rs. 25 lakhs or turnover exceeds Rs. 40 Lakhs
4.Lower cost of FormationMyOnlineCA.in charges – Rs. 4000
Legal charges – Rs. 12,000
MyOnlineCA.in charges- Rs. 3000
Legal Charges- Rs. 7000
5.ConversionCan be converted to LLPCannot be converted into a company
6.ProcedureObtain DSC (Digital Signature Certificate) Obtain DIN (Directors Identification Number) Name Approval Filing for IncorporationObtain DSC (Digital Signature Certificate) Obtain DPIN (Designated Partner Identification Number) Name Approval Filing for Incorporation File LLP Agreement
7.Time for registration15-20 days10-15 days
8.Dividend distribution taxApplyNot apply
What is Limited Liability partnership (LLP) Registration ?
LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. • The LLP can continue its existence irrespective of changes in partners.

Documents Checklist

Limited liability Partnership (LLP) Registration will have to provide the below mentioned Documents.

For registration of One person company (OPC) firm all the partner should provide their documents mentioned in prescribed form. All the Documents should be in clear copy & truly certified by their individual owners.

Documents: The One person company (OPC) Registration will have to provide the below mentioned Documents.

Pan Card Copy

Aadhar Card Copy

Passport Size Photo

Contact details of partners (Email-ID And Mobile Number)

Driving License / Voting Card / Passport Copy (Any one Documents).

Utility bill Proof (Light bill / Telephone bill / Gas bill / Property tax bill / Bank Statement) (Any one Documents)

Documents: Required for Registered office premises.

Rented

  • Rent Agreement.
  • Light bill of premises.
  • NOC from Owner

Non-Rented

Utility bill Proof (Light bill / Telephone bill / Gas bill / Property tax bill / Bank Statement) (Any one Documents)

Procedure for Incorporation

  • Fill the application and Submit to our executive with proper Documents and Make payment.
  • Company Name Approval within 3 working days.
  • Making Digital Signature certificate for director 1 working days.
  • Documents preparing for incorporation within 2 days.
  • Applying for company incorporation 8 days.
  • Congratulation your LLP has been incorporated.
  • Drafting of LLP Agreement. 1 days
  • Submission of form-3 form.

Benefits

Benfits of Limited liability Partnership (LLP) Registration

There are various benefits for incorporating  Limited Liability partnership (LLP) Registration some important benefits are mentioned below.

A. Limited liability

One of the most important benefit of Limited liability partnership (LLP) Registration is Liability of each partnership into partnership firm extent up to his/her capital contribution only and it is totally opposite to sole proprietorship firm where the individual Assets or proprietor is always at risk.

B.Separate Legal entity

LLP Registration has separate existence from its partners. It means LLP has some of the same right in the law as person. LLP has right to enter into any contract, sue and can be sued by other, It can also own property.

C. No Minimum capital contribution required

LLP Can be formed with any minimum capital contribution as opposite to private limited company that has Requirement of minimum 1 Lakh Authorized capital contribution.

D. Lower cost and Ease in of formation

The Cost of formation for Limited Liability partnership (LLP) Registration is very minimum as compare to private limited company registration. And it can be formed easily with basic documents Requirement.

E. Flexible to manage

Limited liability partnership (LLP) Act 2008, Gives LLP the most Freedom to manage its own affairs. Partners by their mutual understanding can decide how they want to manage the LLP firm, it can also be mentioned in LLP Agreement.

F. Taxation

Another best benefit of LLP registration is taxation part of LLP. Limited liability partnership (LLP) are taxed lower as compared to company. Even LLP are not subject to dividend distribution to tax as compared to company so there will not tax when you distribute profits among partners.

Disadvantages of One Person Company (OPC) Registration.

A. Transfer of owner

If the partner wants to transfer his or her ownership right then he/she can transfer the ownership right by obtaining consent of all partners. An Supplementary agreement can be made to complete the entire process.

B. Filings various returns

Disclosing the details of LLP Company publically through filings Annual statement of accounts & solvency and annual return with registrar each year make the data publically available for other to see and download just by paying nominal amount. Income tax return for LLP Company should be also filled to income tax department every financial year.

C. Number of Partner

For Registering Limited Liability Partnership (LLP) must have at least two partners. If any one partner chooses to leave the LLP then it has to be dissolved or any other partner should be added in the LLP firm.

D. Inclusion of Indian citizen as a partner

Overseas Indian/Foreign national who wish to incorporate a Limited liability partnership (LLP) In India shall have at least one partner who is an India citizen. Wherein two foreigners partnership cannot incorporate limited liability partnership (LLP) without having one resident Indian partner along with them.

E. Non-Recognition

Limited liability partnership (LLP) are limited by specific state government regulation due to which they are not given due to recognition in every state as a business structure.

F. Huge penalties

The cost of Non-compliance of forms, such as e-forms is very high which would lead to high penalty which increases day by day until e-forms doesn’t get filled.

Packages

Choose your package & proceed to pay

BASICSTANDARDPREMIUMLimited liability partnership
None
1 DSC 2 Years validity 1 DSC 2 Years validity 1 DSC 2 Years validity Annual return filling and Statement of Account & Solvency.
2 DIN Number for Director2 DIN Number for Director2 DIN Number for DirectorOnly if contribution more than Rs. 25 lakhs or turnover exceeds Rs. 40 Lakhs
Name Approval for companyName Approval for companyName Approval for companyMyOnlineCA.in charges- Rs. 3000
Legal Charges- Rs. 7000
Capital Contribution 50 KCapital Contribution 50 K Capital Contribution 50 KCannot be converted into a company
Incorporation feesIncorporation feesIncorporation feesObtain DSC (Digital Signature Certificate) Obtain DPIN (Designated Partner Identification Number) Name Approval Filing for Incorporation File LLP Agreement
PAN And TAN of CompanyPAN And TAN of CompanyPAN And TAN of Company10-15 days
Incorporation KITIncorporation KITIncorporation KITNot apply
Goods And Service Tax (GST)Goods And Service Tax (GST)
Udyam RegistrationUdyam Registration
Import Export code (IEC)
ISO Certification 3 Years Validity
Rs. 5999Rs. 8499Rs. 9999

Process

Get the process done in 5 Easy Steps

1. Choose the package and fill the form.

2. Make Payment

3. Our Executive will get in touch with you and verify the details.

4. Filing the Application to concern department

5. Congratulations your Work is complete

FAQ's

1. What is OPC According to Companies Act, 2013?

Answer: One person companies (OPC) is company Registered Under companies Act 2013.

2. How many number of members and directors are allowed at the time of OPC Company Registration?

Answer: Only One Member and One Director are allowed in at the time of OPC Company Registration.

3. How to choose name for OPC Company registration?

Answer: Name should be unique;
OPC Company name should be in the formation
Name + Object + Entity
Eg: XYZ Pharma OPC Limited

6. Who is not eligible to register one person company?

Answer: A Foreign citizen, minor, a non-resident Indian, any person with unsound mind, Any disqualified by ROC, Any person who is not into capacity to enter into contractual obligation is not eligible to register an OPC Company.

5. Is it compulsory to appoint nominee in OPC Company?

Answer: Yes, at the time of OPC Company registration it is mandatory to elect nominee. INC-3 form is used to take consent of nominee.

4. What documents are required to open current account for OPC Company?

Answer: Certificate of incorporation, MOA And AOA, KYC of Director and signature on board Resolution for Account opening.

7. How many directors are allowed in One Person Company?

Answer: One Person Company is incorporated with single director and single member, at the same time same member and act as director and member at the time of one person company registration, An OPC can have maximum 15 directors and minimum 1 director and allowed in one person company during.

8. Can conversion form OPC Company to Pvt Ltd Company is possible?

Answer: Yes, If in case OPC Company has turnover of more than 2 core in 3 consecutive year or by passing resolution by all directors.

9. Is Audit is compulsory for OPC Company?

Answer: Statutory audit is compulsory for OPC Company. CA should be appoint has an auditor to verify the books of accounts and issue a statutory audit report.

10. Can OPC Company Raise Funds?

Answer: An OPC Company can raise funds through venture capital and financial institutions or only after converting into Private Limited Company.

11. Different between sole proprietor and OPC Company?

Answer: In sole proprietor runs business on his own where as the personal property can be utilized in case to clear the debt of creditors of company. Liability of OPC Company extends to till companies assets.

11. What is AOA?

Answer: AOA in One Person Company stands for Article of Association. The AOA in One Person Company defines by law, rules and regulations within internal constitution of the said company.

12. What is restriction to carry on business activity of OPC Company?

Answer: OPC Companies cannot carry little business activity are mentioned below
1. OPC Companies cannot carry NBFC Business activity.
2. OPC Companies cannot issue or allot share to anyone except it members.
3. OPC Companies cannot invest securities on the name of company body incorporate, where as OPC Companies members can invest into securities if other body incorporates.

12. What is MOA?

Answer: MOA in One Person Company stands for Memorandum of Association. The MOA in One Person Company shows the mission, vision and objectives of the company.

Still have questions? Ask an expert for help

Call us at+91-7738877316

Email us support@setupfilings.com

Call us at+91-7738877316

Email us support@setupfilings.com