Who are eligible for LLP?

To form an LLP, at least two individuals (called Designated Partners) must be appointed. The individuals must be aged 18 or above and must possess a valid Indian address. Designated Partners can be individuals or bodies corporate (such as companies). Foreign nationals, foreign corporate bodies and limited liability partnerships can also be appointed as Designated Partners.

How much does an LLP cost?

The cost of registering an LLP in India depends on the number of partners, the amount of the contribution made by each partner and any additional registration fees. There are additional costs associated with setting up an LLP in India, such as professional fees, stamp duty, and other registration requirements.

Is GST required for LLP?

Yes, Goods and Services Tax (GST) is required for all Limited Liability Partnerships (LLPs) depending on the type of services or goods they offer. LLPs are required to obtain a GST registration and file GST returns on a regular basis.

What is a Digital Signature Certificate?

A DSC is helpful in identifying the sender or the signee electronically. The Ministry of Corporate Affairs (MCA) has made it mandatory for all the designated partners to apply with the Digital Signatures.

What is DPIN?

Designated Partner Identification Number is a unique identification number that is assigned to all existing and proposed designated partners of an LLP. All the present or proposed Directors must have a DPIN.

How long does it take to incorporate an LLP?

The time taken for incorporation depends on the submission of relevant documents by the client as well as the Approvals from the Government authorities. BRITSI can help you Incorporate an LLP in 14-20 days.

Can NRIs/ Foreign Nationals be designated partners in LLP?

An NRI can be a designated partner in a Limited Liability Partnership if he has a Designated Partner Identification Number. However, at least one Designated Partner in the LLP must be a resident Indian.

Do LLPs allow Foreign Direct Investment (FDI)?

FDI is allowed under automated route in an LLP by the Foreign Investments Promotion Board (FIPB). Note: Foreign Institutional Investors and Foreign Capital Investors are not allowed to invest in LLPs.

Can we convert a Partnership Firm into an LLP?

An existing partnership firm or a Company that is unlisted can be converted into an LLP. This conversion into an LLP brings in many benefits.

What documents are required for incorporating an LLP?

For the Partners

1. PAN or Passport
2. Any Identity proof
3. Bank statements
4. Registered office proof
5. NOC from the landlord to use the premises of the registered office
6. Any utility bills of the premises which are not less than two months.

Is LLP a good idea?

LLP is a combination of both Partnerships and a Limited Company, offering the advantages of both the companies.

What are the compliances for LLP?

An LLP is supposed to file

1. LLP Annual returns by Filing Form 11.
2. Final Statement of Account and Solvency
3. Income Tax Return.

Is it possible for an LLP to raise funds?

An LLP cannot raise funds from the public in any form. In an LLP only partners can contribute their capital and the liability of the Partners is limited to the extent of their contribution.

What is LLP registration?

LLP Registration is the registration of an entity that provides the advantages of a Company and the flexibility of a Partnership firm in a Single organization.

Which is better LLP or Private Limited Company?

It is always better to incorporate an LLP over a Private Limited Company as though both offer the same features. The cost to incorporate an LLP is less as compared to the Private Limited Company. Similarly, the LLP owner holds the ownership as well as control over the Company. The Compliances in the LLP are fewer as compared to a Private Limited Company.

How to start an LLP?

The process of starting an LLP is completely online. All you need to do is submit the documents online. Regular follow-ups will be done by our consultants.

How many people are required to incorporate an LLP?

A minimum of two partners is required to incorporate an LLP.

What are the benefits of the LLP?

There are various reasons why one should incorporate an LLP. The registration cost is low. No requirement for minimum contribution. No limits on the owners of the business. It is not necessary to carry audit. There are fewer tax compliances

How many people are required to incorporate an LLP?

A Limited Liability Partnership must have a minimum of two Partners and an LLP can have any number of Partners.

How to be a Partner in an LLP?

The designated Partner must be a natural person who is above 18 years of age. LLP Act 2008 allows a foreign national including Foreign Companies to incorporate an LLP in India, provided at least one designated partner is Indian.

How much capital is required to start a Limited Liability Partnership?

An LLP can be started with any amount of money there is no such minimum requirement. A partner may contribute both tangible and intangible property.

What is the main purpose of a limited partnership?

The main purpose a limited liability partnership (LLP) is to provide limited liability protection for the partners and also allowing them to share in the profits and losses of the business.
Refer to our article for more details on the purpose of LLP.

Who pays the debts of an LLP?

An LLP is responsible for its obligations, which means that the partners are not personally liable for any debts incurred by the LLP. But if an LLP can’t pay its debts, the partners only have to pay out any money they’ve invested into the firm and nothing more.
Click here to read more about who pays the debts of an LLP?

What are the limitations of LLP?

1. A single person cannot form LLP, a minimum of two members needed
2. Two foreigners cannot form LLP without having one Indian partner
3. LLP structure takes more days to form
4. Partners undertake to contribute some amount towards the LLP firm
5. Difficulty in the transfer of ownership
6. FDI in LLP is allowed only through the Government route. FDI in LLP under automatic way is not permissible.
7. LLP cannot raise External Commercial Borrowing (“ECB”)