LIMITED LIABILITY PARTNERSHIP
The concept of limited liability partnership (LLP) was introduced to India in the year 2008 with the passing of the Limited Liability Partnership Act, 2008. The factor which sets LLP apart from the rest of the business structures is that, it has got the flexibility of a partnership coupled with the advantages of a company. A LLP is the preferred form of business structure for professionals, micro or small companies.
The team at HelpMyBiz is well versed with the technicalities and formalities that entail during the formation of a LLP. We also understand which business structure will suit our client according to their requirements. Contact our experts today to get assistance opening your LLP and start your business!
We follow a 3 step model for all our company formation services,
Our expert calls you to understand your business and help you pick the most suitable business structure for you based on your requirement. We also assist you in picking a unique name.
Apply for e-DPIN, DSC and Name approval.
We draft a LLP agreement from our side according to your inputs. After incorporation we apply for PAN and TAN.
Definition of LLP from the book
BENEFITS OF A LLP
A major advantage of an LLP is that it takes the best characteristics of both partnership and company under its structure. Let us look at the advantages of a LLP in further detail.
Separate Legal Entity
A LLP is considered to be a separate legal entity incorporated by law, thus all contracts, agreements and transactions are made using the LLP firms name. This also provides scope for establishing a brand name with the service or product you provide, thus, helping gain trust and recognition by your consumers.
Limited Liability
As the name suggests the liability of the partners is limited to the extent of the assets they have contributed into the business. In an unfortunate event the business has to shut down and settle all accounts, the partners are accountable only to the extent of capital invested by them.
Low Cost and Less Compliance
When compared to private and public companies, a LLP has way less compliances and cost to deal with while setting up business. This makes it easier to manage.
Easier transfership of ownership
The terms and conditions applicable if a partner leaves or enters a LLP is clearly mentioned and explained in the LLP agreement. This makes exit and entry easier for people.
PRE PREPARATIONS REQUIRED
A Unique Name
The company needs to select a unique name for registering with the Registrar of Companies. The name cannot be similar to any other existing company out there nor infringe on any registered trademarks. It is encouraged to prepare atleast 4 names. You can search for availablity of your desired name in MCA portal.
2 Partners
You will need to have at least 2 partners in your team for forming a LLP and at least one of the partners needs to be a resident of India. If the partner is another corporate body then it needs to have a natural representative.
Registered Office
The LLP needs to declare its registered office from where it will conduct its business. It can be a partners residential address as well.
Capital Contribution
Before forming the company the partners need to decide the capital contribution ratio in between themselves.
Object
You need to prepare the object behind forming the company that is, what business activity would the company engage in after it is incorporated.
DOCUMENTS REQUIRED
Directors/Shareholders
01
Scanned Copy of Pan Card
02
Scanned Copy of Aadhar Card
03
Address proof (Bank Statement, Mobile/Telephone Bill)
04
Scanned Copy of Passport size photo
05
Phone number and email id of the shareholders
Registered Office
01
Scanned NOC (No-Objection Certificate) from the owner of the place.
02
Ownership proof (Gas Bill/Electricity Bill/Property Tax)
03
Rent Agreement – If the property is rented
REGISTRATION PROCESS FOR LLP
The process for formation of a private limited company in practicality involves many steps. However helpmybiz simplifies the process to just 3 steps for your convenience. Below we have explained the complete process that goes behind the incorporation.
Day 1-2
You converse with an expert knowledgeable in the field of company formation. After ascertaining your business structure, a customer relationship manager is assigned to you to help you throughout the process. He/she helps you in preparing the necessary documents and requests you to pay 50% of the fees.
Day 2-4
You converse with an expert knowledgeable in the field of company formation. After ascertaining your business structure, a customer relationship manager is assigned to you to help you throughout the process. He/she helps you in preparing the necessary documents and requests you to pay 50% of the fees.
Day 5-6
Upon approval of the Name, DSC and DIN we send the documents to Ministry of Corporate Affairs for generating the certificate of incorporation. Along with this we start preparing the draft of LLP agreement in accordance to your requirements. At this stage we request the rest 50% be paid as well.
Day 7-8
After receiving the certificate of incorporation we send the final draft of the LLP agreement to you so that you can file it with the district court. The cost of stamp paper varies state by state, we will assist you by informing the amount you should be charged.
Day 9-10
Upon finalization of the LLP agreement in the eyes of law, we will send application for TAN and PAN to the MCA. We will be in touch with you until the process has been completed as per your requirements.
Helpmybiz is by your side through every step of the process ensuring you do not face any problem while forming the LLP. Further our professionals ensure that the company is formed as per your requirements and all formalities are completed on time. Get in touch with our experts today!
