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For the last 5 years, we have specialized with investment advisory while raising equity and debt financing.
We have worked on both sides – Investors and Startups
Legal Compliance: Assisting startups in understanding and fulfilling legal compliance requirements is essential. This can include company incorporation, drafting agreements, intellectual property protection, taxation, and more.
Independent Separate Legal Entity
An LLP is a Separate Independent Legal Person established under the LLP Act 2008. As such, the business is separate from its partners.
Limited Liability
Limited liability partnership protects your personal assets with the “Limited Liability” feature. Maximum Liability of the partners is limited to the extent of their contribution.
No Minimum Capital Requirement
There is no minimum Capital contribution required to start a Limited liability Partnership.
No Share Capital
LLP does not have the concept of shares like a private limited company or one person company.
Uninterrupted Existence or Perpetual Succession
An LLP has perpetual existence. Which means, they continue to do business even if the partners / directors changed or died (which is not the case of Sole Proprietorship or Partnership Firms).
Minimum Two Designated Partners
Lesser compliance requirements
Post incorporation compliance in an LLP is lesser when compared to a Private Limited Company, like board meetings, etc are not mandatory and Statutory Audit by a Chartered Accountant (CA) is not mandatory.
The annual filings of an LLP: Form 8 and Form 11
Form 8 (Statement of Account and Solvency):
It is a document specifying details of the Partners, their contributions, etc. The same needs to be filed within 60 days of the closure of the financial year.
Customized Solutions: Each startup’s needs and situation may differ. Providing tailored legal solutions to suit their specific circumstances is where we come in.
Step 1: Obtain Digital Signature Certificate or DSC
It is mandatory for all the Designated Partners (DP) to have a valid Digital Signature Certificate (DSC). The registration process is online and the forms need to be signed electronically using the digital signature. The Digital Signature Certificates (DSC) must be obtained only from government recognized certifying agencies.
Step 2: Name Approval / RUN – LLP (Reserve Unique Name for Limited Liability Partnership)
In order to register or incorporate an LLP in India, the proposed name should be approved by the MCA Authorities. RUN-LLP (Reserve Unique Name-Limited Liability Partnership) is filed for the reservation of the name of proposed LLP. It shall be processed by the Central Registration Centre.
The proposed LLP Name should be unique and should NOT have been taken by any other business. Availability of the name can be searched on http://www.mca.gov.in/mcafoportal/showCheckCompanyName.do
Also, the proposed company name should NOT be already Trademarked by anyone else. You can check the Trademark availability here https://ipindiaonline.gov.in/tmrpublicsearch/frmmain.aspx
Step 3: Incorporation of LLP – FILLIP form
The form used for incorporation or registration of the LLP is FiLLiP (Form for Incorporation of Limited Liability Partnership). It shall be filed with the respective Registrar of Companies (RoC) in which the registered office of the LLP is situated. This form also provides for applying for allotment of DPIN (if the proposed designated partner does not have a DPIN or DIN).
Step 4: Filing of LLP Agreement via form-3
The Agreement (LLP Partnership Deed) covers the rights and obligations amongst the partners and also between the LLP and its Partners.
An LLP Agreement should at the minimum, cover the following matters:
LLP agreement should be printed on a Stamp Paper. The value of the stamp paper depends on the place of registration and the contribution. LLP agreement should be filed within thirty (30) days from the date of incorporation via form 3 on the MCA portal (http://mca.gov.in).
Documents relating to Designated Partners:
PAN Card of the Designated Partners / General Partners
ID Proof – Voter’s ID / Passport / Driving License / Aadhaar
Address Proof – Latest Bank statement with transactions / Telephone bill / Mobile Bill not older than 60 days
Passport Size Photograph
Documents relating to Registered Office:
Address Proof of the Premises:
Rental agreement or Lease agreement if the premise is rented / leased.
Latest Property Tax payment receipt / Sale Deed if the premise is owned.
Latest Electricity bill / Telephone bill / Gas bill
NOC from the owner of the premise
Timeline – Time Taken to Register a Limited Liability Partnership in India
Normally, if everything is in order, it may take anywhere between 18 to 20 business days for registering an LLP. Below, breakup depicts the approximate timeline required for registering a Limited Liability Partnership in India:
Getting a DSC (Digital Signature Certificate) | 2 Days |
Name Approval | 3 to 5 Days |
Getting Certificate of Incorporation | 5 to 7 Days |
Filing of LLP agreement | 5 to 7 Days |
This timeline is further subject to Government processing, approval time, public holidays, etc.
Limited Liability Partnership / LLP Incorporation or Registration Fees and Cost
Process | Charges |
Digital signature certificate (DSC) | Around Rs. 4,000 for 2 Designated Partners |
Name Reservation (RUN-LLP) | Rs. 200 |
Incorporation of LLP (FiLLiP) | Depends on capital contribution: For Contribution up to Rs. 1 Lakh – Rs. 500. For Contribution between Rs. 1 Lakh to 5 Lakh – Rs. 2000 |
Filing of LLP Agreement | Depends on capital contribution: For Contribution up to Rs 1 lakhs, – Rs 50 for filing Form 3. Stamp duty is based on the state where LLP is registered. For e.g, if the place of registration is Bangalore, Karnataka – then the stamp duty comes to Rs. 2,000 |
An LLP must have a minimum of two partners. There is no upper limit on the number of partners.
Partners in an LLP can be individuals, corporations, or other LLPs. There is no requirement for a designated ‘active’ partner, but at least one partner should be a resident of India.
The liability of partners in an LLP is limited to their agreed contribution to the LLP. This means their personal assets are protected from business liabilities.
Incorporation involves selecting a suitable name for the LLP, obtaining a Digital Signature Certificate (DSC) and Director Identification Number (DIN) for partners, preparing the LLP Agreement, and filing the required forms with the Registrar of Companies (ROC).
Yes, an LLP can be converted into a private or public company if desired. However, the process involves compliance with certain rules and regulations.
Advantages include limited liability, separate legal entity status, flexibility in management and operations, ease of maintenance, and less stringent compliance requirements compared to companies.
LLPs must file annual returns with the Registrar of Companies, maintain proper accounting records, conduct annual meetings, and adhere to tax-related compliance.
No, the fundamental principle of an LLP is limited liability for partners. Their liability is limited to the extent of their capital contribution.
While LLPs can engage in various business activities, there are certain prohibited activities, such as banking and financial services.
LLPs are taxed as partnerships, with partners being individually taxed on their share of profits.
For the last 5 years, we have specialized with investment advisory while raising equity and debt financing.
We have worked on both sides – Investors and Startups
Legal Compliance: Assisting startups in understanding and fulfilling legal compliance requirements is essential. This can include company incorporation, drafting agreements, intellectual property protection, taxation, and more.
Customized Solutions: Each startup’s needs and situation may differ. Providing tailored legal solutions to suit their specific circumstances is where we come in.
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