Registration of Limited Liability Partnership
Documents required to Incorporate / Form LLP
1.Copy of PAN ( Permanent Account Number) of all Partners (Minimum 2)
2.Copy of Address Proof ( Voter Id, Passport, Driving License, 3.Aadhar Card) of all partners
4.Latest passport size Photographs of all partners
5.Registered Office Address Proof – Electricty Bill along with Rent Agreement / ownership proof of proposed registered office.
Copy of Mobile bill, telephone bill, electricity bill or Bank Statement of all directors / promoters with Present address (could be different from permanent address).
Simple procedure in just 8 points to start a LLP:
Check if the proposed partners have Director Identification No (DIN) or not
1. Apply for digital signatures of partners who donot have DIN.
2. Apply for Director Identification Number
3. Application for Name Approval is Filed in Form-1
4. After the name is approved, the Form 2 is sent for MCA Approval.
LLP Agreement (Partnership Deed) is drafted and filed along with Form-3 within 30 Days.
If the E Forms are found to be in order and gets approved by ROC
PAN and TAN Number are applied after getting the Incorporation Certificate.
Compliances after Incorporation of LLP
Apply for PAN and TAN
Apply for Sales Tax / Service Tax Registration based on the nature of Business.
Filing Income Tax Return of Company on or Before 30th September every year
To maintain proper Books of Accounts
Form 8 for statement of Solvency every year within 30 days from the expiry of 6 months from the end of financial year i.e by 30 October.
Form 11 for Annual Return every year within 60 days from close of Financial Year i.e by 30th May.
The main difference is that a LLP has the organizational flexibility of a partnership. The key advantage of a LLP compared with a traditional partnership is that the partners of the LLP are able to limit their personal liability if something goes wrong with the business, in as much the same way as shareholders in a limited company are able to.
Where business owners have wanted to limit their personal liability in the past, they have normally set up limited companies and any profits made by those companies are subject to corporation tax. The taxation of companies and partnerships is very different but taxation should not be the main consideration in choosing a business vehicle.