A common company form in India is the Limited Responsibility Partnership (LLP), which permits two or more people or entities to conduct business with limited responsibility. The government sought to offer a creative and adaptable organisational structure that combines the benefits of limited liability companies and partnerships with the implementation of the LLP Act.
The detailed procedure for registering an online llp registration india via the Ministry of Corporate Affairs portal will be covered in this article. Now let’s get going:
First, see if the LLP name is available.
Verifying the suggested LLP name’s availability is the first step. You must choose a distinct name for your company or LLP that isn’t the same as or similar to one that already exists and is registered. By entering three preferred LLP names, you can use the MCA portal to check name availability online. By LLP naming guidelines, the site will verify that the names are genuine and available.
Step 2: Complete the Form for LLP Incorporation
After deciding on an available LLP name, you must complete the online LLP incorporation form (SPICe+ form). Information such as the intended LLP name, registered office address, designated partner details, business type, etc., are required on this form. For the registration process to go well, all required fields in the form must be filled out accurately.
Step 3: Register and pay the fees
You must pay the required registration fees online after completing the incorporation form. An LLP’s permitted capital determines the registration fees that apply. Payment options for the fees include UPI, credit/debit cards, and net banking.
Step 4: Upload the Necessary Files
Once the registration money has been paid, you must upload the necessary paperwork, such as the signed LLP agreement, the address, and identity verification of the selected partners, in the format required for LLP registration. It aids in confirming the data entered on the incorporation form.
Step 5: Certificate of Digital Signature
A Class 2 or Class 3 Digital Signature Certificate (DSC) of the specified partners is required to electronically sign and submit the LLP incorporation application. If you would want to digitally sign the application form without a DSC, you can use an e-sign instead.
Step 6: Send in your application
Once all necessary data and files have been accurately filled out and submitted, submit the online application for LLP incorporation. An application reference number (ARN), which may be used to monitor the status of the application, will be generated as a result.
Step 7: Incorporation Certificate
Following a successful submission, the Registrar of Companies reviews and validates the application. Within 14 days of the filing date, the Registrar will issue a Certificate of Incorporation if all information is verified.
Step 8: Get the Documents for Registration
After the LLP is created, you can use the ARN to download and print the LLP’s Memorandum and Certificate of Incorporation from the MCA portal. These records provide evidence of an LLP’s Indian registration.
Step 9: Create an account with a bank
Now that you have the Memorandum and Certificate of Incorporation, you can create a bank account in the registered LLP’s name. The LLP may utilise this account for any commercial dealings.
Step 10: Begin Conducting Business
Your LLP is now prepared to start doing business in India after completing the registration process and obtaining a bank account. All legal and regulatory obligations, such as submitting financial statements and annual returns, must be met.
This covers the entire process of registering an LLP online in India via the MCA portal, step-by-step. Within two to three weeks of applying, you can incorporate your limited liability partnership (LLP) by following this procedure. If you require any clarification regarding the process for LLP registration, please let you know.
Compliances Following Registration
Following registration, the LLP must continue to comply with the following requirements:
Notification of Modifications
Any changes to the LLP agreement, partners, registered office address, type of business, etc., must be communicated to the Registrar by the LLP within 30 days of the new information. This assists in maintaining current LLP records with the Registrar.
Submission of the Annual Return
The LLP must submit an annual return on Form 11 to the Registrar by June 30 of each year. Information about changes in capital, partners, and business activity during the fiscal year is included in this return.
Financial Statement Submission
The LLP must prepare annual financial statements by Schedule III of the LLP Act if its capital contribution or turnover exceeds respectively. The Registrar must receive these statements within 30 days following the annual general meeting.
The annual filing fee payment
To maintain it on file, the LLP must pay the Registrar an annual registration fee each year. The LLP’s allowed capital determines the amount of fees.
Audit Conditions
A chartered accountant must audit the LLP’s books if its capital contribution exceeds Rs. 25 lakhs or its turnover surpasses. The annual financial statements that are filed with the Registrar must have the audit report attached.
Upkeep of Accounting Records
Every LLP is required by the LLP Act to keep books of accounts of its transactions and affairs at its Indian registered office address. For eight years, these volumes must be kept preserved.
The advantages of LLP registration
The following are some major advantages of forming an LLP in India:
Limited Liability: Up to their agreed-upon contribution to the LLP, partners’ financial liability is restricted. Asset protection is thus provided.
LLPs provide the advantages of limited liability with the flexibility of a partnership. Roles and profit/loss sharing percentages are decided by partners.
Differentiated Legal Entity: With perpetual succession, an LLP is regarded as a distinct legal entity from its partners. This maintains consistency.
Simple Formation: An LLP can be formed online with e-filing and little paperwork. When compared to companies, this saves money and time.
Tax Benefits: LLPs receive tax treatment at firm-applicable rates. The partners are responsible for paying taxes on the LLP’s income. The benefits of pass-through taxation result from this.
International Acceptance: The LLP framework complies with global best practices. This promotes international commercial prospects and foreign investment.
Conclusion:
In conclusion, the LLP must continue to comply with legal requirements after registration, including notifying parties of changes, filing yearly returns and financial statements, paying annual fees, and keeping up-to-date books of accounts.