LLP registration in Chennai
TALK TO EXPERTS
The advantages of a partnership and a limited liability company are combined in a limited liability partnership (LLP). It began to take shape in India in January 2009 and became an immediate hit with startups and professional services. The idea behind LLP was to offer owners a business structure that was simple to run and to provide them with limited liability protection.
LLP registration
LLP registration in Chennai can be done as below.
- The directors’ DSC is required to complete all online forms. Therefore, obtaining DINs and DSCs for two partners is the first step in the procedure. We file on your behalf and gather the necessary information from you.
- We reserve the name you want to register under for your LLP while simultaneously determining whether the name is available. The MCA portal allows you to check the availability of names.
- The registrar will only approve the name if the central government does not find it undesirable. Any existing partnership firms, Limited Liability Partnerships (LLPs), trademarks, or body corporates should not be compared to the name.
- Drafting the LLP agreement and other registration documents is the next step for LLP registration in Chennai. In a limited liability partnership, an LLP agreement is very important because it defines the rights and responsibilities of the partners and the LLP. As a result, this agreement has been carefully drafted by our professionals.
- When LLP registration in Chennai is complete, the partners sign the LLP agreement by submitting Form 3 online through the MCA portal. Within thirty days of the incorporation date, this procedure must be completed.
- The registrar will receive the required documents and forms from our team. You receive your LLP incorporation certificate and are almost ready to run your business once the registrar approves all of the forms and documents.
- We will apply for your LLP’s PAN, TAN, and bank account as soon as you receive the incorporation certificate.
Requirements to set up LLP
LLP registration in Chennai requires below mentioned.
DSC
It is a digital certificate that is used to verify and certify the identity of the holder.
A DSC is a safe digital key that uses public key encryptions to generate signatures and is issued by the certifying authorities.
The user’s name, pin code, country, email address, date of certificate issuance, and certifying authority’s name are all included in the Digital Signature Certificate.
DIN
The Director Identification Number is an eight-digit unique identification number issued by the Central Government to any prospective or current director of a company.
It is an eight-digit, one-of-a-kind identification number that is valid for life and is used to update a database with director information.
DPIN
A person must have a DPIN in order to have LLP registration in Chennai or become a Designated Partner of an already-existing LLP. A Designated Partner Identification Number (DPIN) is required for the proposed LLP’s designated partners.
[Note: It is possible to use an existing Director Identification Number (DIN) as a DPIN.]
LLP Agreement
It is a written agreement between the LLP’s partners or its designated partners, as the name suggests for LLP registration in Chennai.
The designated partners’ rights and responsibilities toward one another and the LLP are outlined in the LLP Agreement.
Benefits of LLP
There are many benefits of having LLP registration in Chennai.
Business owner
An LLP needs at least two partners for LLP registration in Chennai. In contrast to a private limited company, which can’t have more than 200 members, there is no maximum number of partners.
Minimum contribution not needed
In contrast to the business, the LLP does not have a minimum capital requirement and can have LLP registration in Chennai. With the least amount of capital possible, an LLP can be created.
Additionally, a partner’s contribution to the LLP may include benefits in the form of tangible, immovable, or intangible property.
Lower cost
Compared to incorporating a private limited or public limited company, the cost of LLP registration in Chennai is low.
Lower compliance
A private limited company is required to submit at least 8 to 10 compliances annually, whereas a limited liability partnership is only required to submit an Annual Return and a Statement of Accounts and Solvency.
No compulsory audit
Audits of a company’s accounts are required for all businesses, private or public, regardless of share capital. However, there is no such mandatory requirement for LLP which can have LLP registration in Chennai. Accounts must be audited annually in accordance with the LLP Act, with the exception of LLPs with a turnover of less than Rs. 40 million rupees 25 million in a single fiscal year.
Taxation for LLP
LLPs and partnership firms are treated similarly when it comes to income taxation. As a result, LLP which has LLP registration in Chennai is subject to income tax, whereas partners’ shares of LLP are not. Therefore, there is no dividend distribution tax to pay. The income tax law’s “deemed dividend” provision does not apply to LLP.
Section 40 (b): Any salary, bonus, commission, or other compensation that can be deducted by the Limited Liability Partnership as interest to partners.
Difference between LLP and Traditional partnership firm
In a “traditional partnership firm,” each partner is jointly and severally liable for all actions taken by the company while he was a partner. In an LLP, a partner’s liability is limited to his agreed-upon contribution.
Additionally, individual partners are shielded from joint liability caused by another partner’s wrongdoing because no partner is liable for the independent or unauthorized actions of another partner.
Compliances of LLP
Book of Accounts Every year, the registered office is required to keep a Book of Account detailing the company’s operations. This book must be kept using the double-entry accounting method. If the revenue is greater than Rs. If the capital is greater than 25 lakhs, an audit by a Chartered Accountant is required.
Form 8 and Form 11 are the two types of MCA annual returns that an LLP must submit each fiscal year. This LLP can have LLP registration in Chennai.
Part A of Form 8 is the Statement of Solvency, and Part B is the Statement of Accounts, Statement of Income, and Statement of Expenses.
Digitally signed by two designated partners and certified by a chartered accountant, company secretary, or cost accountant, this form must be submitted within 30 days of the end of six months of the fiscal year.
Form 11 must be submitted with the required fee within 60 days of the end of the fiscal year, on May 30 of each year.
A summary of the partners, information about the body corporate’s status as a partner, the total number of partners, and the total amount contributed by each partner are all included on Form 11.
Income Tax Return No matter how much money you make or how much money you make, you must submit an income tax return each year.
Document Maintenance
Every LLP which can have LLP registration in Chennai is obligated to keep its incorporation document, partners’ names and any changes made to them, proof of fee payment, statement of account and solvency, and annual return that it files with the Registrar at its registered office.
Features of LLP
LLP that has LLP registration in Chennai has the following features.
Separate entity
The LLP Act of 2008 created a separate, independent legal entity known as an LLP. As a result, the company is distinct from its partners. When LLP registration in Chennai is complete the legal entity status can be obtained.
Limited liability
The “Limited Liability” feature of a limited liability partnership safeguards your personal assets. The partners’ maximum liability is restricted by the amount they contributed.
Perpetual succession
An LLP that has LLP registration in Chennai exists indefinitely. This indicates that they continue to conduct business despite the change in partners or directors (as opposed to Sole Proprietorships or normal Partnership Firms).
Minimum two partners
- Two partners are the minimum number necessary to form an LLP and can have LLP registration in Chennai.
- The maximum number of partners is unrestricted.
- There should be two designated partners among the partners, and at least one of them should be a resident of India.
Mutual agency
An additional distinction between an LLP which can have LLP registration in Chennai and a partnership firm is that one partner’s independent or unauthorized actions do not hold the other partners accountable. The actions of one partner do not bind the others because they are all LLP agents.
About Us
Shoplegal is the best service provider that offers LLP registration in Chennai at an affordable cost. We are also involved in doing IPR, GST registration and IT filing.