LLP Registration in Bangalore

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LLP registration in Bangalore

LLP, short for Limited Liability Partnership, is a unique business structure that combines the features of both a traditional partnership firm and a company. Under the provisions of the Limited Liability Partnership Act, 2008, LLPs are governed. LLPs offer the advantages of a partnership, such as a simple compliance process and clear roles and responsibilities, while also providing the benefits of a company, such as limited liability for the partners and a separate legal existence that is perpetual. As a result, LLP registration is a preferred choice for many professional services firms, such as Chartered Accountants, Company Secretaries, Management Consulting Businesses, Recruiting Firms, and other service-based businesses.

Why you should choose LLP company registration in Bangalore

Limited Liability Partnership, commonly known as LLP, offers a unique business structure that combines the benefits of a traditional partnership and a company. Governed by the Limited Liability Partnership Act of 2008, LLP provides limited liability benefits to its partners, ensuring their protection against business loss or insolvency. In case of negligence or misconduct by a partner, the liability of other partners is restricted to the capital contribution as per the LLP agreement. The LLP Agreement, which is a deed among the partners, establishes the operating structure of the business, including the rights and responsibilities of each partner. The agreement typically designates a "Designated Member" who would control the day-to-day operations. This structure allows for clearly defined roles and responsibilities of each partner and protects their interest in case of loss due to the unlawful actions of another partner. LLP registration creates a separate legal identity for the business, governed by the LLP Act of 2008. This means that the business can contract with other entities, take legal action, own assets, and borrow funds in its own name. LLP provides flexibility to the business to function independently and perpetually, regardless of changes or death of partners. Compliance requirements for LLPs are lesser as compared to private limited companies, making it a cost-effective formation type to maintain. LLPs do not have a mandatory audit requirement until a certain level of turnover or contribution. Moreover, unlike companies, LLPs are not required to conduct board meetings or statutory meetings. Professional services for compliance are typically available at cheaper rates than those for companies.

Steps to register your LLP company registration 1. Obtain DSC and DIN of partners To register a Limited Liability Partnership (LLP), there are several steps that need to be followed. The first step is to obtain the Digital Signature Certificates (DSC) and Director Identification Numbers (DIN) of the desired partners. This is necessary because all the forms need to be submitted online and require the directors' digital signatures. 2. Application For Name Approval The next step is to apply for name approval. This involves checking if the desired name is available and obtaining approval from the Registrar of Companies. 3 Compliance Requirements Once the LLP is registered, it is important to comply with various statutory requirements. These include maintaining proper books of accounts, filing annual returns with the Registrar of Companies (ROC), conducting regular meetings of partners, and obtaining necessary licenses and permits as per the business activities. Failure to comply with these requirements may result in penalties and legal liabilities. .

Obtaining Business Licenses and Permits Depending on the nature of the business activities, the LLP may need to obtain various licenses and permits from government authorities. For example, if the business involves food production or sale, the LLP may need to obtain a food license from the Food Safety and Standards Authority of India (FSSAI). Similarly, if the business involves the import or export of goods, the LLP may need to obtain an Import-Export Code (IEC) from the Directorate General of Foreign Trade (DGFT). Opening Bank Account Once the LLP is registered and the PAN and TAN have been obtained, the LLP can open a bank account in the name of the LLP. The bank may require various documents, such as the LLP agreement, PAN and TAN, and address proof of the registered office. Commencement of Business Once the LLP is registered and all necessary licenses and permits have been obtained, the LLP can commence its business activities. It is important to ensure that all compliance requirements are met and that proper accounting and bookkeeping practices are followed. The LLP should also obtain necessary insurance coverage, such as liability insurance, to protect the business against unforeseen events. The following documents are required for LLP registration in India: 1. Digital Signature Certificate (DSC) of all proposed partners and designated partners. 2. LLP Agreement, which specifies the rights and duties of the partners and their profit-sharing ratio. 3. Form FiLLiP, which is the application for LLP registration. 4. Form 1, which is the application for reservation of name for the LLP. 5. Form 3, which is the agreement for the LLP, to be filed within 30 days of incorporation. 6. Certificate of Incorporation, which is issued by the Registrar of Companies (ROC) upon successful registration of the LLP. .