A Limited liability partnership is a business entity created under the Limited Liability Act 2008. The positive aspect of a limited liability Partnership is that one partner is not responsible for the misconduct of the alternative partners. Limited liability Partnership offers indebtedness to its owners & requires minimal maintenance. Limited Liability Partnerships have indebtedness to their owners, and just in case of default, banks/creditors can sell only the company’s assets & not the owner’s personal assets.
- Difference between Limited Liability Partnership and Partnership.
Cost
 The cost of online LLP registration in India is comparatively quite more than partnership registration.
Authority
Online LLP registration in India is under the Ministry of Corporate Affairs, Central Govt. India. While Partnership firms are registered with the registrar of firms and controlled by the respective state govt where the firm is registered.
Limited liability protection
The foremost advantage of the limited liability Partnership over a partnership firm is that in a limited liability partnership, one partner can’t be accused and is not in control of the deeds or misconducts of the other partner. An LLP also offers indebtedness protection to the owners from the debts of the LLP. Although, unlike private Ld. shareholders, partners of the LLP have the right to manage their business directly.
Number of partners
Limited liability partnership and partnership firm needs to have a minimum of two members for the registration. Though after LLP registration online it can have an infinite number of partners but in the case of partnership if the number of partners goes below the mandatory number of two partners due to death, incapacitation, or resignation the partnership firm would be dissolved. However, in the case of a Limited liability partnership whether or not the number of partners comes right down to one, the sole real partner will have the right to manage the business and appearance for more partners without getting the firm dissolved.
Advantages Of LLP Company Registration
LLP company registration is considered to be easier to line up and versatile. Below are advantages of Online LLP registration:
Law Registration Cost
The cost of online LLP registration in India is comparatively lower than that of incorporating a public Ltd. or a private Ltd. LLP company registration is cheaper and will not be heavy on your pocket.
No Requirement for Minimum Contribution
As a Limited liability partnership is to form with the smallest amount of possible capital, there is no minimum capital requirement with the LLP company registration or LLP registration online.
No Restriction on Business Owners
An Limited liability partership requires a minimum of two partners, but there is no such upper limit for the first number of partners for LLP company registration. While during a pvt ltd company there are limitations of more than 200 members.
No Mandatory Audit Requirement
Whether a company is public or private, regardless of its share capital, it is expected to get its account audited. But here, in the case of an Limited liability partnership, there is no such mandatory requirement as can be understood as one of the various compliance benefits associated with forming a Limited liability partnership.
Tax Aspect of LLP
A limited liability company controls the payment of taxes because the partner's share is not liable for taxation. Therefore, no Dividend Distribution Tax (DDT) is payable.
Law Registration Cost
The cost of online LLP registration in India is comparatively lower than that of incorporating a public Ltd. or a private Ltd. LLP company registration is cheaper and will not be heavy on your pocket.
No Requirement for Minimum Contribution
As a Limited liability partnership is to form with the smallest amount of possible capital, there is no minimum capital requirement with the LLP company registration or LLP registration online.
No Restriction on Business Owners
An Limited liability partership requires a minimum of two partners, but there is no such upper limit for the first number of partners for LLP company registration. While during a pvt ltd company there are limitations of more than 200 members.
No Mandatory Audit Requirement
Whether a company is public or private, regardless of its share capital, it is expected to get its account audited. But here, in the case of an Limited liability partnership, there is no such mandatory requirement as can be understood as one of the various compliance benefits associated with forming a Limited liability partnership.
Tax Aspect of LLP
A limited liability company controls the payment of taxes because the partner's share is not liable for taxation. Therefore, no Dividend Distribution Tax (DDT) is payable.
Online LLP Registration Procedure
More simple than it looks!
Initially, we have got to use DSC for all directors and shareholders. Digital signatures are essential as they're used for signing all the documents while registering a company or for LLP registration online.
Soon after applying for DSC, we move further to use DIN (Director Identification Number).DIN might be a singular number allocated by MCA to the director of the company for LLP registration online.
Soon after applying for DIN and DSC, we had to choose a unique name for our company. This whole process completes after a day.
After approval of the name, the very next step involves filling out e-forms and other documents and filling e-forms with the MCA portal and anticipating approval. After completing all the formalities and documents, we upload all the e-forms by the MCA portal. It takes two days for approval or rejection.
After the approval from the MCA portal, the MCA will issue the certificate of Incorporation, PAN & TAN.
Documents Required For Online LLP Registration In India
Following are the documents required for LLP registration online
For the Partners
Proof of residence
FAQ's
Few doubts important to be resolved quickly
No, every process involved with a pvt ltd company registration is done online .Your work is only to send scanned documents and forms and all e-forms will be filled electronically on MCA Portal. So no physical presence is required to register a company in India.
Yes, a small business can register their business under Limited Liability Company Registration in India. It gives them credibility and the image of their business in the eyes of financial institutions, suppliers and potential clients. It helps the company to get loans with little compliance from banks or potential clients in closing deals.
No professional or educational qualifications are required to become a partner in a limited liability company. Any individual in the position of a person with common sense can establish a company. Anyone can register a company in India.
These articles contribute a really important piece of information for the directors and shareholders as it comprises their roles and responsibilities for the company and contains all the rules, vision and mission of your private limited company.
In private limited companies the minimum number of directors is two while the maximum is 200. You can register a private company in India with just 2 directors.
