The LLP or the Limited Liability Partnership is the new way of forming the companies. With the buzz of startups in the world, the LLP gained popularity. The LLP is nothing but a new way of starting the companies. Instead of following the tricky procedure for creating a new company from scratch, the LLP formation is the easiest way. With fewer compliances, less documentation and quick approval, LLP or Limited Liability Partnership is the best option for the startup owners.
The limited liability partnership introduced in India in 2008. The Limited Liability Partnership Act, 2008 came into force, and this marked the start of LLPs in India. It is one of the easiest types of companies you can start. You need minimal documentation, and the entire process is online. You don’t have to waste time visiting the Registrar of Companies offices. LLP is similar to the Partnership but has a ton of benefits to the partners.
Limited Liability Partnership (LLP)- All You Should Know
Limited Liability Partnership or LLP is the easiest form of company you can start. There is no need to collect complex documents. You can start your LLP within a few days online. All you need is minimal documentation and you are set. Although it is similar to the Partnership, it comes with a ton of benefits. For example, LLP is a limited liability, which means there won’t be unlimited liability of the partners as it’s the case in Partnership firms.
The difference in Limited Liability Partnership and Partnership Firm
The partnership firms are way different than the Limited Liability Partnership. The LLP is a separate legal entity, most like the Incorporated company. The Partnership provides the basic features to the partners. But with LLP, the partners get access to the features of an incorporated company. As LLP is an incorporated company and a separate legal entity, it provides all of the features of the company. In short, the partners are treated as Directors and promoters.
Also, the Partnership does not have perpetual succession. Death of one or more partners would defunct the Partnership. But that’s not the case with an LLP, as it keeps working even after the death of one or more directors. One of the biggest differences between LLP and Partnership Firm is the liability. The partnership firm has unlimited liability. To satisfy the liabilities, the authorities can utilize the private property of the partners. But in LLP, as the name suggests, the liability is restricted to the invested share capital of the directors. Nothing more.
Documentation for Registering Limited Liability Partnership Company
There is no need for collecting a ton of documents for LLP registration in Mumbai. All you have to do is to collect a bunch full of documents, have their scanned copies, and you are ready to roll. Here is the list of all of the documents that you need for LLP company registration.
- PAN Card of Partners
- Passport for NRI/Non-Indian Partners
- Drivers License or Aadhar Card, Election Identity Card or any Government-Issue Identification Proof
- Three Months Bank Statement or Telephone Bill
- Authorization Letter from Landlord for using premises as Registered Office for your LLP. It is a NOC Letter from your Landlord. If you own the place, then copy of Electricity Bill, Gas Bill, Water Bill, Tax Receipt or Sale deed.
- Proof of Ownership of Landlord – Electricity Bill, Tax Receipt, Gas Bill, etc. with the name of the landlord clearly written.
LLP Registration Procedure in Mumbai
Thanks to the Indian Government and the LLP Act,2008. The procedure of LLP registration has become easier than ever. The procedure is very simple. But as the procedure involves technical aspects, you should not do it by yourself. It is better to hire the LLP Registration services in Mumbai, which is better than the Efiling.co.in, LLP Registration services? The experts at the Efiling.co.in will handle all of the minor aspects of Limited Liability Partnership Registration in Mumbai. All you have to do is to provide the requested documents to the staff at Efiling.co.in. Pay the required fees, and you’ll get your company registered. The entire process takes nearly a month, as there are many steps involved in LLP Registration.
Frequently Asked Question on Limited Liability Partnership
#Q1 – How Much Does It Cost to Register an LLP in India?
Cost to Register an LLP in India is pretty low compared to the other forms of companies. The entire process will require you to pay nearly Rs. 7,000/- approximately. The entire process includes the DSC fees, Capital Fees, Bonds, Name reservation and DIN generation for partners. You can get your LLP registered from Efiling.co.in at a minimum price.
#Q2 – Is LLP better than Pvt Ltd?
LLP has the operational benefits of the Private limited company. But the LLP has an advantage in Registration, Operations, and Compliance with the government. In short, LLP is better for startups and small businesses.
#Q3 – Is GST Applicable to LLP?
Yes. According to the notification from the Central Government, the LLPs are liable to pay GST. Only the companies that are eligible in the GST regulations have to file GSTRs and pay GST.
#Q4 – What is the Minimum Capital Required for an LLP?
LLP or the Limited Liability Partnership has no minimum limit for the Capital. You can start with any amount, and the contribution can be Tangible, Intangible, Movable and Immovable property.
#Q5 – Can LLP Take a Loan from a Bank?
The LLP is considered as the separate Legal Entity in the eyes of the law. Which means, it is treated as a separate legal person. That’s why an LLP can apply for a loan from any bank adhering to the bank regulations.
Professional Limited Liability Partnership Registration Services in Mumbai
LLP registration is not a tedious task at all. But it does not mean that you can solely create an LLP. You need to follow the strict compliances otherwise you’ll fail to register LLP in Mumbai. If you are willing for a 100% success rate and compliance with all of the rules, you should hire the LLP registration services in Mumbai from Efiling.co.in. the professionals at Efiling.co.in will ask for the required documents and will perform all of the procedures for LLP registration. Within 15-20 days, you’ll get your DSC, DIN, PAN, and LLP incorporated.