LLP Registration Services in Bangalore

Author: Shankar Kumar

Everything You Need to Know About LLP Registration

Limited Liability Partnership(LLP) incorporates the advantages of both partnership firm and company into a single form of organisation among entrepreneurs. LLP company registration was brought in India in 2008, and it possesses the characteristics of both partnership firm and company.

According to the Limited liability Partnership Act (2008), a minimum of two partners are required to incorporate an LLP. However, there is no boundary on the maximum number of partners of an LLP. Also, one of the partners should be a resident of India. The rights and governed by the LLP agreement. There are several LLP Registration in Bangalore that provides with less LLP Registration Fee.

Features of LLP

  • It has a distinct legal entity, just like businesses.

  • The liability of each partner is restricted to the contribution made by the partner.

  • The price of initiating an LLP is low.

  • Less compliance and regulations.

  • No requirement for minimum capital donation.

Advantages Of LLP Registration

Separate legal entity: An LLP has a distinct legal entity, just like businesses. The LLP is different from its partners.

Limited liability of the partners: The best thing is that partners of the LLP have restricted liability. Also, the liability of the partners is limited to the contributions made by them. Thus, they are liable to pay only part of their contributions and are not personally responsible for any loss in the business.

Low cost and less compliance: Forming an LLP is less than incorporating a public or private limited company. The compliance to be followed by the LLP is also less.

No need for minimum capital contribution: The LLP can be formed without minimum funds. There is no necessity of having a minimum paid-up capital before incorporation. It can be created with any amount of money contributed by the partners.

Steps Required for LLP Registration

Step1-Obtain Digital Signature Certificate (DSC)

First, you have to apply for the digital signature of the designated partners. Mostly because all the documents for LLP are filed online and must be digitally signed.

Step 2-Apply for Director Identification Number (DIN)

Then, you have to apply for the DIN of all the designated partners or those planning to be designated partners of the proposed LLP.

Step 3-Name Approval

LLP-RUN (Limited Liability Partnership-Reserve Unique Name) is filed to reserve the name of the proposed LLP, which the Central Registration Centre will process under Non-STP. But before mentioning the name in the form, it is suggested that you use the free name search option on the MCA portal.

Step 4-Incorporation of LLP

The form used for incorporation of LLP is FiLLiP(Form for incorporation of Limited Liability Partnership) and this will be done with the Registrar, who has jurisdiction over the state in which the registered office of the LLP is established.

Step 5-File Limited Liability Partnership (LLP) Agreement

The LLP agreement controls the mutual rights and duties amongst the partners and between the LLP and its partners.