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Complete Guide to LLP Registration in India with YathraFin


A Limited Liability Partnership (LLP) combines the benefits of both a company and a partnership firm. It offers partners the flexibility of organizing their internal structure based on an agreement, while also limiting the liability of each partner to their capital contribution. LLPs are increasingly popular in India due to the ease of compliance, limited liability, and tax benefits they provide.
This guide covers everything you need to know about registering an LLP in India and how YathraFin can streamline the process for you.


What is an LLP ?


A Limited Liability Partnership (LLP) is a business structure that offers limited liability protection to its partners while providing the flexibility of a partnership. In an LLP, each partner's liability is limited to their contribution, protecting personal assets from business debts or other partners’ actions. LLPs are governed by the Limited Liability Partnership Act, 2008, in India.


Why Choose YathraFin for LLP Registration ?


Registering an LLP can involve complex paperwork and compliance requirements. Here’s why YathraFin is the ideal choice to help you through the process:

  • End-to-End Support: From documentation to submission, YathraFin offers comprehensive guidance at every step.
  • Expert Compliance Assistance: Our team of experts helps ensure that your LLP meets all regulatory requirements.
  • Affordable and Transparent Fees: No hidden charges; competitive rates to keep your registration cost-effective.
  • Ongoing Compliance Support: Continued guidance for filing annual returns and meeting LLP compliance requirements.

Key Features of an LLP


  • Limited Liability: Protects each partner’s personal assets from business liabilities.
  • Separate Legal Entity: LLPs are separate from the partners, so the LLP can own property and sue or be sued.
  • No Minimum Capital Requirement: Flexibility in capital investment; partners can contribute any amount.
  • Flexible Internal Structure: Partnership agreement governs the operational structure.
  • Perpetual Succession: LLP exists irrespective of changes in partners.

Types of LLPs


In India, OPCs are typically categorized based on business activities:

  • Professional LLPs: Ideal for professionals such as lawyers, architects, and accountants.
  • Family LLPs: For family-owned businesses with limited liability.
  • Investment LLPs: Often used for venture capital, hedge funds, and private equity funds.
  • General LLPs: Suitable for small businesses, startups, and companies looking for a flexible structure.

Documents Required for LLP Registration


  • Partner Identification Documents: PAN, Aadhaar, or passport of each partner.
  • Address Proof of Partners: Recent utility bills or bank statements.
  • Business Address Proof: Rental agreement and utility bill for business address.
  • NOC from Property Owner: Required if the registered office is a rented premise.
  • Digital Signature Certificates (DSC): For designated partners to file online.

Eligibility Criteria for LLP Registration


To register an LLP, the following criteria should be met:

  • Minimum Partners: At least two partners are required, with no cap on the maximum.
  • One Indian Resident Partner: At least one partner must be a resident of India.
  • Digital Signature: Designated partners must have a Digital Signature Certificate.
  • Unique Name: The LLP name must be unique and not similar to any existing business names.

Step-by-Step LLP Registration Process with YathraFin


  • Step 1

    Digital Signature Certificate (DSC)

    Obtain DSC for designated partners to file electronically.

  • Step 2

    Director Identification Number (DIN)

    Apply for DIN for each designated partner.

  • Step 3

    Name Approval Application

    Submit a name approval request through the LLP RUN (Reserve Unique Name) form.

  • Step 4

    LLP Agreement Drafting

    Create an LLP Agreement outlining the roles, rights, and obligations of partners.

  • Step 5

    Incorporation Form Submission

    Submit Form FiLLiP along with necessary documents.

  • Step 6

    Certificate of Incorporation

    Receive the Certificate of Incorporation from the Registrar of Companies.

  • Step 7

    LLP Agreement Filing

    File the LLP Agreement with MCA within 30 days of incorporation.

Rules and Regulations for LLPs


LLPs in India must comply with certain rules to remain in good standing:

  • Annual Returns: LLPs must file an Annual Return in Form 11 with the MCA.
  • Financial Statements: Submit Statement of Accounts and Solvency (Form 8) annually.
  • Change Notification: Update MCA on any changes in partners or business address.
  • Income Tax Filing: File income tax returns as per the Income Tax Act, 1961.

Compliance Requirements After LLP Registration


Once registered, an OPC must fulfill the following compliance obligations:

  • Filing of Annual Return (Form 11): Every LLP is required to file Form 11 annually.
  • Statement of Accounts & Solvency (Form 8): Required annually within 30 days of the end of six months of the financial year.
  • Income Tax Returns: File income tax returns for LLPs with the IT Department.
  • Maintenance of Financial Records: Keep accurate records of financial statements and other documentation.

Benefits and Government Schemes for LLPs


  • Limited Liability Protection: Protects partners’ assets from business debts and liabilities.
  • Lower Compliance Requirements: Fewer compliance obligations compared to a private limited company.
  • Perpetual Succession: LLPs continue to exist despite changes in partnership.
  • Eligibility for Government Schemes: Eligible for MSME registration and related benefits.
  • Tax Benefits: LLPs are taxed at a lower rate and enjoy other tax-related benefits.
FAQ

Frequently Asked Questions

These FAQs cover essential details like eligibility, required documents, process steps, and benefits. It helps clarify common queries about setup, compliance, costs, and timelines.

An LLP requires at least two partners, with no limit on the maximum number.
No, an LLP cannot be directly converted into a private limited company.
An LLP provides limited liability protection, while a partnership firm does not.
No, there is no minimum capital requirement for LLP registration.
Yes, designated partners need a Director Identification Number (DIN).
Once registered, an LLP continues to exist unless it is dissolved.
Yes, an LLP can own property in its own name as it is a separate legal entity.
Yes, foreign nationals can be partners in an LLP subject to FEMA guidelines.
LLPs with a turnover above ₹40 lakh or capital contribution above ₹25 lakh are required to undergo an audit.
No, a minor cannot be a partner in an LLP.
Filing Form 11, Form 8, and Income Tax Return annually.
Use the LLP RUN form on the MCA portal to reserve a unique name.
No, an LLP requires a minimum of two partners.
The name must be unique, not infringing on trademarks, and must include “LLP” at the end.
Yes, the LLP agreement must be filed within 30 days of incorporation.
No, an LLP cannot issue shares, as it is a partnership-based entity.
LLPs are taxed at 30% on income, plus applicable surcharges and cess.
Yes, an LLP can be closed voluntarily by partners if desired.
LLPs with a turnover above the GST threshold must register for GST.
Yes, LLPs can register as an MSME and avail of benefits under the MSME schemes.


Registering an LLP is an excellent choice for entrepreneurs and professionals looking to establish a business with limited liability and flexible operations. With YathraFin, the entire process becomes straightforward, ensuring compliance and a hassle-free experience. Start your LLP journey today with YathraFin and take advantage of our expertise to set up your business successfully!

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