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Limited Liability Partnership (LLP) was introduced in India by way of the Limited Liability Partnership Act, 2008. This form of business entity is simple to maintain as well as provides limited liability to the owners. The main advantage of a Limited Liability Partnership over a traditional partnership firm is that in an LLP, one partner is not responsible or liable for another partner's misconduct or negligence. An LLP also provides limited liability protection to the owners from the debts of the LLP. However, unlike privately limited company shareholder, the partners of an LLP have the right to manage the business directly.
LLP is one of the easiest forms of business to incorporate and manage in India and hence is preferred by Professionals, Micro and Small businesses that are family owned or closely-held. Since LLPs are not capable of issuing equity shares, LLP should be used for any business that has plans for raising equity funds during its lifecycle.
The registration of is a simple process. It involves few steps and documentation that has been discussed later. The average time taken to complete an LLP registration is about 15 - 20 working days, subject to government processing time and client document submission.
Bengaluru is a city known for its growing industrial sector which paves the way for many to move in there and start a career. Having contained so many advantages, Bengaluru has become a hub for people to start up a company or firm which ultimately serves their purpose. If we see the statistics of how many companies have started newly, the numbers are in thousands. This shows that Bengaluru does prove its industrial advantages and also show how one can start up their venture with no room for thinking twice. Limited Liability Partnership companies in Bengaluru also increased huge in numbers as it is one of the easiest way to incorporate a business that yields fruitful returns. Thus, it is important for one to initiate the LLP registration in Bengaluru. CompanyVakil with the help of technology and experts such as lawyers, Chartered accountants, company secretary makes LLP Registration Bengaluru error-free and seamless.
Step 1: Digital Signature Certificate (DSC)
Applying for the digital signature of the designated partners of the proposed LLP is an important requirement before initiating the process of registration. This is because all the documents for LLP are filed online and are required to be digitally signed. The designated partner must obtain their digital signature certificates from government recognized certifying agencies.
Step 2: Director Identification Number (DIN)
Application for DIN has to be given for all the designated partners or those intending to be designated partner of the proposed LLP. The application for allotment of DIN has to be made in Form DIR- 3. A scanned copy of documents, usually Aadhaar and PAN should be attached to the form. The same must be signed by a Chartered Accountant, Company Secretary, Cost Accountant or Advocate.
Step 3: Reservation of Name
Form 1 is filed for the reservation of the name of the proposed LLP. The name selected, should not be similar to that of an already existing name. The registrar will approve the name only if the name is not undesirable in the opinion of the Central Government and does not resemble any existing partnership firm or an LLP or a body corporate or a trademark.
Step 4: Incorporation of LLP
Form 2 is the application form for the incorporation of the LLP. Following points must be kept in mind while filing Form 2.
Step 5: File Limited Liability Partnership Agreement
The mutual rights and duties amongst the partners and between the LLP and its partners are governed by the LLP agreement. LLP agreement must be filed in form 3 online within 30 days of the date of incorporation. The LLP Agreement has to be printed on Stamp Paper.
For Indian Nationals, following documents are required-
For Foreign Nationals/NRIs
Pre-requisites for LLP formation in Bengaluru
If an LLP has a status of a separate legal entity and a juristic person. This gives LLP a wide legal capacity that can own property and also incur debts. However, the Partners of an LLP have no liability to the creditors of an LLP for the debts of the LLP.
It gives LLP perpetual succession that is continued until it is legally dissolved. An LLP being a separate legal person is unaffected by the death or other departure of any Partner.
The ownership of a registered LLP can be easily transferred to another person by inducting them as a Partner of the LLP. LLP is a separate legal entity separate from its Partners, so by changing the Partners, the ownership of the LLP can be changed.
A registered LLP being an artificial judicial person, can acquire, own, enjoy and sell property in its name. No Partner can make any claim upon the property of the LLP so long as the LLP is in existence.
DSC is an electronic online signature issued by licensed certifying authorities. All the proposed directors of the company are required to apply for the digital signature (DSC), it is necessary for digitally signing the electronic incorporation documents.
DESIGNATED PARTNERSHIP IDENTIFICATION NUMBER is a unique number which is a mandatory requirement for all the partners of the LLP. Ministry of corporate affairs allots a DPIN to every partner of the LLP with a lifetime validity without which one cannot be a partner in the LLP.
Once we obtain the DIN and DSC of the directors, a list of 1 to 6 proposed names of the company will be will be submitted to MCA for approval. We will conduct a prior search for your name availability through our unique search portal. We get your company name approved subject to availability and naming guidelines.
After the stage of Name Approval, we draft the required Papers and LLP Agreement for your Limited Liability Partnership (LLP). All the incorporation documents need to be submitted with the prescribed e-form. Once all the documents are duly verified and approved by the government, the certificate of incorporation is emailed to you. During which, we will apply for PAN and TAN of your LLP.
An LLP is a form of business which is basically a partnership firm but has a limitation on the liability of the partners of the LLP. An LLP is considered to be a separate legal entity having perpetual succession and with the liability of partners limited to the capital contributed by them. Hence, a shareholder is not personally liable for the debts of the company.
Minimum two people are required for the LLP formation in Bengaluru. There is no limit on the maximum number of partners in LLP.
LLP is formed to carry on business with a view to earning profits. Thus, LLP cannot be incorporated for undertaking "Not-For-Profit" activities.
To incorporate an LLP quickly, one has to make sure that the proposed name of the Limited Liability Partnership is unique. Names that are similar to an existing company can be rejected and additional time will be required for resubmission of names.
‘LLP’ is required to get their books of accounts audited when the total revenue is more than INR Rs. 40 lacs or total capital of partners exceeds INR Rs. 25 Lacs.
As per the LLP Naming Guidelines, Name of the LLP shall end with either ‘Limited Liability Partnership’ or ‘LLP'.
An existing partnership firm can be converted into LLP Registration in India by filling form 17 along with Form 2. Similarly, an existing company can be converted to an LLP by filing Form 18 along with Form 2.
Form 27 can be filled for establishing a place of business in India by a foreign company.
The designated partner is entrusted with the responsibility of managing the LLP in the best and efficient manner. A designated partner is also liable for misconduct or fraud or if found guilty of default.
Any individual can become a designated partner or partner in a Limited Liability Partnership Bengaluru Firm. No professional or educational qualification is required for the same.