LLP REGISTRATION in Mumbai

What is LLP?

A partnership in which some or all partners have limited liabilities is known as a Limited Liability Partnership (LLP). LLP possess characteristics of both partnerships and corporations. Partners of LLP are not responsible or liable for another partner's misconduct or negligence. In a LLP, partners have a form of limited liability just like that of the shareholders of a corporation. In certain countries, as per the rules, a LLP should also have at least one person known as a "general partner" who would have the unlimited liability of the company. The partners of LLP have the right to manage the business directly. However, this right is not available to corporate shareholders. On contrary, corporate shareholders have the right to elect a board of directors under the laws of various state charters. The board organizes itself and hires officers as corporate individuals and their legal responsibility is to manage the corporation in its best interest. A LLP also has a different structure of tax liability as compared to that of a corporation.

In certain countries, Limited liability partnership requires at least one unlimited partner and allows other partners to be in the role of a passive and limited liability investor. As a result, the LLP form of organization is more suitable for businesses in which all investors wish to take an active role in management.

LIMITED LIABILITY PARTNERSHIP Registration in Mumbai

Mumbai (aka Bombay). the largest city Located on the western coast of the country, it is a collection of seven islands. The coasts form a major part of the tourism industry in Mumbai with the Gateway, Haji Ali Dargah, Juhu Beach, and the Elephanta caves as the main source of attraction. Another ‘not to miss’ a fact about Bombay that it is one of world's biggest film industry, popularly known as Bollywood. Mumbai is also the land of major financial institutions like the Reserve Bank of the country, the National Stock Exchange, the Bombay Stock Exchange, SEBI, etc. It is a cosmopolitan city and is a home for people from all the diversified cultures. You can go for an LLP Registration in Mumbai with  help of  Company Vakil.

On 9th January 2009, the Limited Liability Partnership Act, 2008 was published in official Gazette of the country and has been notified with effect from 31 March 2009. On 1 April 2009, the rules have been notified in the official gazette. Our country's first LLP was the legal consultants of Handoo and Handoo, which was incorporated on 2nd April 2009.

LLP is different from a Limited Partnership. In an LLP each member is liable up to the extent of their capital contribution in the LLP.

1. LLP in Mumbai is treated like any other partnership firm for the purposes of taxation (service tax or any other stipulated tax payment).
2. Partners’ share is limited to their agreed contribution in the LLP.
3. Further, no partner would be liable on account of the independent or unauthorized actions of other partners, thus allowing individual partners to be shielded from joint liability created by another partner's wrongful business decisions or misconduct.
4. Just like corporate entity, LLP is a body corporate and a legal entity which is separate from its partners. It has perpetual succession. The Partnership Act, 1932 does not govern the LLPs and there is no upper limit on the number of partners in a LLP. The Act makes it obligatory that one of the partners to the LLP should be a resident.
5. Provisions have been made for mergers, amalgamation, and corporate actions.
6. While enabling provisions in respect of winding up and dissolution of LLPs have been made, detailed provisions in this regard would be provided by way of rules under the Act.
7. LLP's shall be registered and controlled by the Registrar of Companies (Roc).

Reasons to register for Limited Liability Partnership ( LLP Registration in Mumbai )

• ·Low cost of Registration - Firstly, registration and formation of a Limited Liability Partnership involves very low costs and expenses as compared to that of a company or a traditional partnership firm.
• Flexible Structure of business - Limited Liability Partnership is the most flexible form of business where the partners themselves frame the rules for their governance.
• Perpetual Succession for partners - The registration of LLP gives it a separate status of a legal entity, i.e. a legal entity separates from its partners. So, this gives the LLP perpetual succession.
• No Minimum Capital Requirements - For the purpose of registration, there is no requirement of such minimum capital for a LLP. It is an internationally renowned form of business and can be easily registered online.
• No Limit on Partner - There are no restrictions as to the maximum number of partners in an LLP, so even if there are 2 partners in the LLP, they can register it successfully.
• Government Subsidies - Registering the LLP helps in getting certain subsidies and reliefs from the government like tax exemption. Unlike a company, no tax is levied on profit distributed to the partners.
• Partner's Limited Liability - LLP mode of business, limits the liabilities of the partners i.e. the personal assets of the partner are not exposed except in case of fraud. No partner in an LLP shall be liable for the misconduct of the other partner(s).

Advantages & Benefits of LLP Company Registration

• Low Formation and Registration charges: The cost and expenses of incorporation of an LLP in Mumbai are less as compared to those of a Company. The registration fee is also economic. Therefore, it is easy to establish a LLP.
• No maximum number of partners: There are no restrictions as to the upper limit of partners in a LLP, so if there are at least 2 partners in the LLP, they can register it successfully.
• No minimum capital requirement: There is no minimum capital requirement for the purpose of formation of LLP as compared to a Company. A LLP can be formed with the least contributed capital.
• Certain Tax exemptions: Registering the LLP helps in getting certain subsidies and reliefs from the government like tax exemption. Unlike a company, no tax is levied on profit distributed to the partners.
• Separate Legal Entity: Once the LLP get registered it has a separate legal status and it is treated as a separate person in the eyes of law. This means that the LLP has a separate legal existence from that of its partners.
• Flexibility: The formation of LLP ensures flexibility in LLP incorporation, operations, and management without imposing detailed legal and procedural requirements.
• Perpetual Succession: Even if the partners of the LLP keep changing, the LLP exists.
• Internationally renowned: LLP is an internationally renowned form of business in comparison to a Company.
• Limited Liability of Partners: The partners of LLP have limited liability which means that the personal assets of the partners are not liable to be sold off during any contingency except in case of fraud by the partner.

Process for LLP Registration in Mumbai

• Acquire DPIN, Acquire DSC: DPIN stands for Designated Partner Identification Number. For obtaining DPIN for the partners, DSC – Digital Signature Certificate is required. After obtaining the DSC of the proposed partner, the next step is acquiring the DPIN.
• Register DPIN, DSC with LLP: After obtaining the DPIN and DSC, it needs to be registered immediately. This embarks the registration of the proposed LLP in Mumbai.
• Check Name Availability: Deciding on an appropriate name for the business plays a crucial part in the formation of LLP. So, an application for reservation of name is to be submitted to the Ministry of Corporate Affairs. Further, the application shall be scrutinized by the Registrar of Companies (ROC). Once the name selected is available then such application is approved. In case such name is registered by any other firm then selection of another name is to be made and submitted within a stipulated time of 60 days of notice of the rejection of name.
• Download LLP Forms: After the approval of the name and all the necessary verification, one can download the LLP forms online. The form needs to be duly filled along with the submission of relevant documents including PAN Card/ID Proof of the Partners, Address proof of the registered office of the LLP & its partners etc.
• File electronically: The actual providing of information submission of documents takes place during filing for incorporation of LLP. The partners need to submit such information and documents within the prescribed time limit.
• Track Status: It takes time to process the application due to a number of application requests with the ROC. So, one need to be patient enough to get their application processed. For this purpose, applicants are provided with the facility to track the status of their application online.
• Receipt of Certificate: Once the application is accepted, the Registrar issues the Certificate of Incorporation. After such issue, the LLP shall be considered to be registered.
• LLP is ready to function: It takes time to process the application due to a number of application requests with the ROC. So, one need to be patient enough to get their application processed. For this purpose, applicants are provided with the facility to track the status of their application online.