Start your own LLP

A Limited Liability Partnership (LLP) perfectly balances the ease of doing business with compliance and trust. Ideal for startups and small business. Start your own LLP with MybizAID from Rs. 6500* (excluding Stamp charges).

₹6500

(excluding Stamp charges)

Limited Liability Partnership

Understanding LLP

Limited Liability Partnership (LLP) is a body corporate, a hybrid form of business combining the benefits of limited liability of Company with the flexibility of partnership form of business. Unlike a partnership firm, the liability of partners is limited in case of LLP and has perpetual succession. While the concept of LLP is new in India but owing to its mixed features of the company and partnership form of business, it is now a popular form for housing business.

Statue governing LLP

The statute that governs a LLP in India is Limited Liability Partnership Act, 2008. The rights and duties of LLP and its partners are governed by the agreement entered between LLP and its partners at the time of incorporation of LLP. In absence of any such agreement, the same will be governed by the first schedule of LLP Act, 2008. The Ministry of Corporate Affairs (MCA), Government of India, provides for procedural requirements concerning establishing of an LLP. The Registrar of Companies (ROC) shall register LLPs.

For Start-ups

For a start-up, this form of business is suitable as initially the scale of operation for the start-up would not be large. Moreover, the cost of incorporating a LLP is comparatively less and it involves less legal compliances as compared to incorporating a company.

Advantages of Limited Liability Partnership

Separate Legal Entity

A LLP is a legal entity and a juristic person established under the Act. It has wide legal capacity and can own property and also incur debts. The Partners of a LLP have no liability to the creditors of a LLP for such debts. It has its own legal existence distinct from its designated partners (DPs). DPs cannot be held liable for the acts of LLP.

Limited Liability

Businesses often need to borrow money. In a General Partnership, partners are personally liable for all this debt. So if it cannot be repaid by the business, the partners would have to sell their personal possessions to do so. In an LLP, only the amount invested in starting the business would be lost; all personal property would be safe.

Owning Property

A LLP being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No Partner can make any claim upon the property of the LLP so long as the LLP is a going concern.

Eligibility under the Government Start-up Plan

One of the entities eligible to take benefits of the start-up plan launched by the government is a LLP. It may be an encouraging reason for a venture to choose this form of business model.

Audit not required

A LLP does not require audit if it has less than Rs. 2 Crore of turnover and less than Rs.25 lakhs of capital contribution. Therefore, LLPs are ideal for start-ups and small businesses that are just starting their operations and want to have minimal regulatory compliance related formalities.

Permission for Foreign Direct Investment (FDI) in LLP

As per the press note released by DIPP reviewing the FDI Policy 2015, the government has opened new doors for LLP. FDI is now permitted in LLPs operating in sectors/activities where 100% FDI is allowed, through the automatic route and there are no FDI-linked performance conditions.

Packages

BASIC

₹6500

Plus Stamp Charges (For two partners and authorized capital up to Rs.50,000)

DSC, DIN, LLP Deed Drafting,

Government Fees For Incorporation,

Name Approval, PAN, TAN.

STANDARD

₹8000

Plus Stamp Charges (For two partners and authorized capital up to Rs.50,000)

DSC, DIN, LLP Deed Drafting,

Government Fees For Incorporation,

Name Approval, PAN, TAN,

ROC and ITR Filing for First Year.

PREMIUM

₹9000

Plus Stamp Charges (For two partners and authorized capital up to Rs.50,000)

DSC, DIN, LLP Deed Drafting,

Government Fees For Incorporation,

Name Approval, PAN, TAN,

ROC and ITR Filing for First Year,

One Year TDS Return Filing.

LLP Incorporation Process

Obtaining DSC and DIN

All Designated Partners need to obtain Digital Signatures (DSC) and Designated Partner Identification No. (DPIN). DSC and DPIN can be obtained within 4-6 days.

Name Approval

Application for reservation of name of the LLP is to be submitted in Form 1. Subject to availability, naming guidelines and MCA processing time,Name Approval can be obtained in 5 to 7 working days.

LLP Incorporation

After name approval, file Form 2 (Incorporation document and Subscriber’s Statement) for Incorporation of LLP. MCA will usually approve the application for incorporation in 5 to 7 days, subject to their processing time.

LLP Agreement

After incorporation of LLP, an initial LLP Agreement is to be filed in Form 3 (Information regarding Limited Liability Partnership Agreement), within 30 days of incorporation of LLP.

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