Limited liability partnership (LLP) registration in Chennai

Limited liability partnership registration in Chennai also called LLP registration is a hybrid form of business structure leveraging the lesser tax compliance advantage of a traditional partnership firm and the limited liability feature of a private limited company. If we remove the disadvantages of a partnership firm and the disadvantages of a private limited company, what we get is a limited liability partnership business structure.

How to register LLP in Chennai ?

Limited liability registration in Chennai is applied with the Ministry of corporate affairs in online mode.  The proposed LLP name is applied with the registrar for name approval. Once the name is approved, the limited liability firm registration application is submitted using digital signature of LLP partners. The registrar will approve the application submitted and issue a LLP registration certificate.

Documents required for LLP registration

  1. Checklist
  2. Pan card of partners
  3. ID proof : Aadhaar card/ voter id / driving license/ passport of partners
  4. Address proof : bank statement / mobile bill / Telephone bill, electricity bill.
  5. Passport size photo of partners
  6. Rental agreement after approval of LLP name
  7. Supporting documents

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    What is LLP registration ?

    Limited liability partnership firm introduced in India in year 2009 by LLP act 2008, and it is also registered with ministry of corporate affairs like pvt Ltd. The only form of business in India with more benefits and low compliance, low cost of setup and maintenance. The concept of limited liability and the power of ownership only to partners is the biggest advantage of LLP. Limited liability partnership is the best suitable for service sector such as software, technology, professional services, etc.

    Pricing:
    ₹9000


    Steps to Register

    LLP registration consultation

    In this step, the client is informed about how to choose the LLP name, documentation, process, time required, and other details that the customer should know. Client KYC documents are verified for validity and easy approval.
    1

    LLP name application

    As a first step in processing LLP, the name is applied with MCA after checking the existing names, resemblance, and trademark.
    2

    Digital signature and DPIN application

    Once the name application is submitted, a digital signature for the partners is applied through the Aadhaar E-KYC process. The client needs to complete the DSC verification process for DSC approval. DPIN will be applied for two partners.
    3

    Preparation and submission of documents

    Once the name is approved, documents such as the rental agreement are drafted and provided to the client along with other documents for signing. The signed documents are then verified and uploaded for approval by the registrar
    4

    Approval of LLP and issue of certificate

    The registrar after verifying the documents submitted will grant a certificate or LLP registration. After the grant of registration, the LLP deed should be drafted and submitted to the registrar within 30 days for LLP incorporation.
    5

    other registration and compliance

    The client will be provided with details about tax compliance required, other registration required for the nature of business, etc
    6

    Why should we register LLP in Chennai?

    • LLP registration is considered as a hybrid form of business incorporation with limited liability benefits of a private limited company and ownership rights of a traditional partnership firm
    • LLP is considered the same as a normal partnership firm in terms of income tax rules, tax rates, etc. No additional compliance is required for LLP in the Income tax act.
    • The disadvantage of heavy compliance, documentation, periodical return filing, and annual general meeting is not required for limited liability partnership firm
    • It enjoys separate legal entity status and thus has a greater advantage of representing itself as a separate person through its designated partners.
    • Low cost of filing LLP forms in the Ministry of corporate affairs
    • There is no minimum capital required to register of LLP in India
    • Unlike a partnership where it will be automatically dissolved in case of minimum no of partners falls below 2, in the case of LLP time limit of 6 months is provided to increase the limit to 2 partners.
    • The compulsory audit is not required
    • Improved credit facility compared to traditional partnership firms due to compliances required under LLP Act and monitoring by MCA.

    What is the compliance required after LLP registration?

    • As a first step after LLP registration, LLP should file an LLP agreement with the registrar within 30 days of approval of the LLP registration certificate. Failing to file an LLP agreement within this time will result in a penalty of Rs.100 for every day of delay in filing an LLP deed.
    • As LLP is a definite and proper separate legal entity, a current account with the bank shall be opened for transactions of the firm
    • Deposit of contribution in the bank account of LLP, amount of contribution of each partner shall be deposited in a designated bank account in cash if his contribution is less than Rs.20,000, if his/her contribution is Rs.20,000 to more the same shall be deposited through cheque or online transfer from the bank account.
    • Maintenance of books of accounts, vouchers, ledgers, and other accounting requirements is mandatory for LLP. Presumptive taxation is not applicable to LLP, so the choice of declaration of profits as the minimum percentage of turnover is not applicable to LLP.
    • TDS provisions are applicable to LLP irrespective of turnover limit hence, if the firm is liable to deduct TDS for any quarter it is liable to file a TDS return for the quarter and deposit TDS deducted every month to the government account within the due date. Failure to file a TDS return within due will result in a penalty of Rs.200 per day.
    • Filing of income tax return is mandatory irrespective of the turnover of the business or activity of the business
    • GST registration is mandatory only if turnover crosses the threshold limit
    • LLP should file annual returns, statements of solvency, and other documents every year within 6 months from the end of the financial year.

    From Auditor DESK

    Limited liability partnership registration is a good form of business for businesses with third-party risks, if you are business has a high value of third-party risk and still if you want a low level of statutory compliance you can opt for LLP instead of a private limited company.

    Frequently Asked Questions

    We make it easy for you to find the answer to frequently asked questions here...
    LLP agreement is the legal document containing the relationship between partners, rules for admission and resignation of partner
    There is no such restriction on the nature of the business to be registered in LLP. However, the only condition is it should be lawfully business
    The designated partner’s identification number also called DPIN, is an identification number issued by MCA for a person proposing to designated partner in LLP, DPIN has to be updated every year on or before 30 September every year, and penalty to update within the time allowed is Rs.5000
    Yes PAN number and TAN number will be approved along with the LLP incorporation certificate, we need to fill in details regarding the income tax jurisdiction of the business address properly
    Yes private limited company can be converted to LLP the only condition the name should not be changed only the suffix shall be changed with respect to the conversion
    Foreign nationals can be designated partners in LLP, however, the only condition there should be a minimum of 1 Indian citizen as a designated partner. There should be minimum 2 individual designated partners in LLP after satisfying this minimum requirement, even a person other than an individual can become a partner in LLP
    Partnership firms can be converted to LLPs, however, the only complication in the process is name approval. There are no strict rules in the name of a traditional partnership firm, a partnership firm can be registered with the name of a similar partnership, however in the case of an LLP approval will be based on strict naming rules, so it will be technically difficult to get the same name for new LLP
    The concept of limited liability is not applicable when the partners had engaged in unlawful activity or fraudulent activity.  In case the partner had acted in good faith and without intent to defraud, his liability towards the firm is restricted to the unpaid amount of contribution towards capital contribution
    Actions of the partners are binding on the firm only if it is authorized by the LLP by its terms, which were clearly documented by the LLP deed and LLP act, Any transaction which is contradictory to LLP rules and regulations is not binding on the firm if it is unauthorized

    Some of the businesses for which LLP is suggested

    • Software consulting and related services
    • Professional services
    • Legal services
    • Civil Engineers
    • Technical consulting
    • Wholesale trading
    • Authorized Distributor
    • Authorized Dealer
    • Training centers
    • Financial services
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