Limited Liability Partnership (LLP) In Chennai

Limited Liability Partnership (LLP) REGISTRATION IN CHENNAI

Chennai : Formally known as Madras, it is the capital of Tamil Nadu. It is the 36 largest Urban Area by its population in the whole world.  It attracts various tourist as they are having Chennai Central , Marina Beach , Madras High Court , TIDEL Park , Ripon Building , San Thome Basilica , Kapaleeshwarar Temple etc. It is having the Third largest expatriate population in India .It is also one of the largest municipal economies of the country. It is also selected to be one of the smart city under the smart city Mission

LLP Registration in Chennai The LLP i.e. Limited Liability Partnership is recognized by the Companies Act, 2013. LLP provides limited liability on the partners and hence the maintenance is also marginally less. One of the major highlights of registering as an LLP is that the cost is marginally less than the registration of a private limited company, which makes it a more preferred form of a company registration. The terms and conditions in an LLP are governed by the LLP agreement that the partners have entered into. The most noteworthy distinction in the LLP is that the two partners don’t have the liability for each other's actions; the point here is that the minimum number of partners in the LLP should mandatorily be two, and one of them should be a resident of India, irrespective of the fact that what the nationality of the other partner is. Hence, in conclusion, the whole point of entering into an LLP is to neglect the complexity of the other forms of companies, while having the same features and most importantly, having limited liability.

Reasons for LLP Formation in Chennai : LLP is the most preferred option of company formation since it limits the liability and is low in cost, in terms of registration. Most of the Startups prefer that their partnership formation is an LLP. The other reasons for LLP Formation  in Chennai can be understood as the following –

1. Advantages of both partnership & company – The most important reasons why LLPs are preferred and should be registered for, is because it gives the ease of operation of a partnership, and recognition under the eyes of law just like a private limited company has without the complications of registering as a company.
2. Convenience - The registration of an LLP is absolutely low in cost as compared to the registration of Private Limited Companies; also the mode of operation is much easier when it comes to an LLP.
3. One partner doesn’t take any responsibility of the other – Though its mandatory that there should be two partners while forming an LLP, but both the partners are independent in conduct, if for instance there is a misconduct on the part on one partner, the other partner doesn’t take the responsibility of his misconduct or negligence.
4. Easy Dissolution – When the LLP meets its end due to fiduciary or other circumstances, the winding up process in an LLP is much simpler and easy as compared to the dissolution of a private limited company.

Process of Limited Liability Partnership Registration in Chennai 

The process of LLP registration is relatively different from the registration of other forms of companies, Company Vakil is a great platform for registration of LLPs, and they provide expert and professional services in this regard. However, the process for LLP registration can be understood as following:

• Digital Signature Certificate: The partners who are entering into an LLP, are supposed to get their individual Digital Signature Certificate (DSC), from the concerned authorities, in order to initiate the process of LLP registration. This plays the role of a verifying signatory for the partners who are entering into an LLP.
• Director Identification Number/Designated Partnership Identification Number: In cases of a private limited company registration, a person has to file for a DIN number for the directors of the company, in the case of an LLP the DPIN is sought for each of the partners, the DPIN is the DIN for each partner in the LLP.
• Reservation of the LLP: An Account is created in the MCA (Ministry of Corporate Affairs) website, after which the designated Form-I is filed duly, stating the company credentials and particulars which is then further processed, but here the LLP finds a place officially with the MCA.
• Incorporation of the LLP: A designated Form-II is filled, the applicants are supposed to complete all the necessary obligations with respect to, furnishing the documents and then the form is sent for incorporation along with the aforesaid fee amount.
• LLP Agreement – The partners in the LLP then enter into a contract, wherein they agree to the terms and conditions with regard to the functioning of the LLP Formation in Chennai

Minimum Requirements of LLP Registration in Chennai

We are familiar with the fact that LLP provides for an easy and convenient form of business operation, which is a mixed bag of both partnership and company, however, the following are the minimum requirements LLP Registration  in Chennai – 

1. Number of Partners – The minimum number of partners in an LLP should be two, and then only can the LLP be forwarded for registration. A Limited Liability Partnership is mandatorily entered  between two parties
2. Domicile status of partners – The two partners who are a part of the LLP, at least one of them should be an Indian; the other partner can be of any domicile status/nationality.
3. Name & Address of LLP – The LLP should compulsorily have a name, and a correspondence address, which is of the established office of the LLP, is subject to registration.
4. Digital Signature Certificate – A DSC is obtained from the partners in an LLP which serves a purpose for the identification of the partners involved. This is the verifying signatory.
5. LLP Agreement – The LLP Agreement is entered between the partners, this agreement states the terms and conditions of the LLP operation, and also states that the partners are not responsible or liable for each other’s conduct during the operation of the business.