Converting your business from partnerships into an LLP is better because your business will have limited liability for partners, perpetual existence, unlimited partners, and better access to credit and potential for growth. We help you convert partnership into LLP in 3 simple steps –
A Limited Liability Partnership (LLP) can prove to be a much better business vehicle than a regular partnership. Partnerships are affected by personal liabilities, and LLPs remove excessive regulations of the Indian Partnership Act, 1932. Furthermore, there are tax benefits, no audit requirements below a certain capital, no cap with regard to a number of partners or capital contribution requirements.
Separate Legal Entity:
Transferring the ownership of LLP is simple. A person can be quickly inducted in as a designated partner, and the ownership will switch to them.
Suitable For Small Business:
No Owner /Manager Distinction:
An LLP has partners, who own and manage the business. This is different from a private limited company, whose directors may be different from shareholders. For this reason, venture capitalists do not invest in the LLP structure.
Separate Legal Entity:
At Vakilsearch, we make the process of LLP registration seamless and hassle-free.
Step 1: Obtaining DSC And DIN
The first step is to obtain DSC of the desired partners of Limited Liability Partnership. The reason for this is that all the forms need to be submitted online and require the directors' digital signatures. The law also requires that all directors file for a DIN number. The application has to be made in Form DIR- 3.
Step 2: Application For Name Approval
This process involves registering the LLP. Before doing this, you would need to see if the name is already taken. You can check on the free search facility on the MCA portal. The registrar only approves LLP names that are not taken before.
The approval of the name will be made by the Registrar only if the Central Government does not deem it undesirable. The name should also not hold any resemblance to any of the existing partnership firms, LLPs, trademarks, or body corporates.
Step 3: LLP Agreement
LLP agreement is very crucial in a limited liability partnership as it determines the mutual rights and duties amongst the partners, and between the LLP and the partners. The partners enter into the LLP agreement upon the LLP registration by filing form 3 online on the MCA portal. This procedure has to be done within 30 days of the date of incorporation.
Step 4: LLP Incorporation Certificate
Once the registrar approves your MOA and AOA, you’re steps closer to getting your LLP registered. The next step is to get the LLP Incorporation Certificate. You can do it by submitting all the documents to the registrar. The time frame is between 2- 12 days. Once you get your LLP Incorporation Certificate, you’re ready to go.
Step 5: Apply For PAN & TAN & Bank Account
As soon as you get the incorporation certificate, you need to apply for your company PAN & TAN with the NSDL. The cost for this procedure is less than Rs.200 and it takes around three weeks to get done.
The method of LLP registration in India does not require much legwork when it comes to documents.
To Be Submitted By Partners
For Registered Office
With VakilSearch, registering an LLP is one of the easiest processes in India. We make the entire compliance procedure simple and provide our best efforts to complete the process as early as possible. When you choose us to be your partner to register LLP, you get to avail of a few undeniable benefits. The Ministry of Corporate Affairs comes up with updates to the LLP process and Vakilsearch takes care of them for you.
We also provide assistance with:
1K Companies Per Month
We execute legal work for over 1000 companies and LLPs every month, by leveraging our tech capabilities, and the expertise of our team of legal professionals. Come on board and experience the ease and convenience!
By handling all the paperwork, we ensure a seamless interactive process with the government. We provide clarity on the incorporation process to set realistic expectations.
With a team of over 300 experienced business advisors and legal professionals, you are just a phone call away from the best in legal services.
MCA Introduces LLP Settlement Scheme
01st April: The Ministry of Corporate Affairs has introduced LLP Settlement Scheme. The scheme is to benefit defaulting LLPs for whom filing of belated documents (Form 3, Form 4, Form 8 and Form 11) is due till 31st August 2020. An additional fee, whatsoever, has been waived off. No proceedings and prosecution will be initiated by the Registrar against these LLPs if they complete the filing by 30th September 2020
Deloitte Touche Tohmatsu India LLP: Transaction Adviser of Government
27th May: For the Indian Government's strategic disinvestment process, Deloitte Touche Tohmatsu India LLP has been appointed as the transaction advisor.