LLP Registration Online in Maharashtra

How to Apply for Online LLP Registration in Maharashtra?

There are thousands of Ideas goes every day in one’s mind, and one of them is usually about starting one’s own business. But many times, this idea dies in that corner of your mind when you realize the technicalities in starting your business. That is why, StartupsFiling offers to ease down your process of starting your business, by making sure that your business has all legal qualification to run, starting from the foremost, Company registration. As you have searched for Limited Liability Partnership, then you have done your research to the best. To adding the finest of perfection to your research, we make sure that you are well versed with all the its and bits of registering your business as a LLP, so that you enter the arena with your foot strong.

What is a “Limited Liability Partnership” or “LLP”?

Limited Liability Partnership is a form of company structure listed in the Indian Legislation which is based out of a LLP agreement or deed constituted between the partners intending to start a business. LLP offers wide range of features inclusive of limited liability, no capital requirement, less complex process, etc. these all features tentatively offer great amount of protection to the partners from liability in causes of debts over the business, including tortuous liability. Owing to the separate legal entity, the LLP is generally considered separate from its partners. However, in cases of fraud, and crimes, the court can pierce the corporate veil which eventually hides the “separation” in the identity of the LLP and its partners. The partners are therefore considered to be responsible for the acts caused in the business.

Why to register as a limited Liability Partnership?

LLP is one among the pool of popular form of company structure in Maharashtra, owing to its wide range of benefits which creates flexibility in conducting business. Few of such benefits are as follows:

1. No minimum capital requirement: There is no minimum capital requirement for you to start LLP unlike that of a private limited company where you need to have minimum of Rs 1 Lakhs to register for the same.
2. No Compulsory audit requirement: In many other forms of business structure, there is a mandatory requirement of the audit. However, in a Limited Liability Partnership, there is no such requirement of conducting audit, yet if one still feels the need to do so, is absolutely allowed to do the same. Also, auditing becomes a requirement in case where the contribution in LLP exceeds Rs 25 lakhs, or where the annual turnover exceeds Rs 40 lakhs.
3. Lower LLP Registration Cost: The estimated cost required in the entire LLP registration process is comparatively lower than that of other form of company structures available under the Company Act of 2013.
4. Less complex process: The process of registering a Limited Liability Partnership is comparatively less complex as you need not to draft the Memorandum of Association or Article of Association to register the company.  All you need is just the partnership deed signed by all the partners.
5. No DDT applicable: In the matter of a Limited Liability Partnership, there is no DDT @ 15% (plus surcharge & education cess) is applicable at the time of profit withdrawn from the company by the partners which is a mandatory practice in a private limited company. 
6. Flexibility with number of partners: In LLP registration, there is need of only 2 partners to start with the process unlike that of the public limited company where you need minimum 7 number of members to begin the process with.

Documents required for LLP Registration in Maharashtra

For proceeding with the LLP registration, you will need following documents to certify the given needs:

• Partner’s Identity proof: PAN Card, Passport, Aadhar Card
• Partner’s Address proof: Passport, driving license, voter ID card, Bank statement, utility bills
• Registered address proof: Rental Agreement, utility bills, lease deed
• Partnership Deed: Details of Partners, obligations, duties, rights, profit sharing, and contribution.
• For foreign nationals: Passport, residence card, bank statement, or government-issued identity with the address
• DSC for each Partner

Challenges you might face in LLP Registration

All the ups are usually followed by the downfalls, which is expected on a road to success. Similarly, the journey of LLP is covered with certain bumps, few of which are as follows:

1. No equity investment: Due to non-availability of shared to the public domain, a LLP cannot enjoy the benefit of equity investment. This is for the main reason that the involvement through investment is only limited to its partners listed in the partnership deed.
2. Higher tax rate: There is higher incomes tax rate for the partners receiving profits from Limited Liability Partnership. There is 25 % of tax rate for the company with turnover up to Rs 250 Crore, whereas the same slab raises to 30% for a Limited Liability Partnership.
3. Non-compliance penalty: Despite the profit or loss, a LLP is required to file the ITR on time. Otherwise, on missing upon the filing of an ITR, the LLP may be subject to penalty for non- compliance. 
4. Difficulty in transfer of shares: Unlike that of a public limited company, where the shares can be transferred through one click on stock exchange, transfer of shares in a LLP is definitely not an easy process.
5. Must Indian Partner: Ad there is a mandatory requirement of minimum two partners to start a Limited Liability Partnership, the complimentary requirement is of one partner being an Indian citizen. It is mandatory that one partner needs to be an Indian, otherwise, two foreigners cannot establish a Limited Liability Partnership.

Our Package Inclusions for LLP Registration in Maharashtra

• LLP Registration Filing: This includes preparing and filing all necessary documents with the appropriate government authorities for the registration of your LLP. It involves paperwork such as the LLP Agreement, Form 1 (Application for reservation or change of name), and Form 2 (Incorporation Document and Statement).
• Digital Signature Certificate (DSC): A DSC is required for digitally signing the documents submitted during the LLP registration process. StartupsFiling may provide assistance in obtaining DSCs for the designated partners of the LLP.
• Designated Partner Identification Number (DPIN): Every designated partner of the LLP needs to have a DPIN. StartupsFiling could assist in obtaining DPINs for the partners, which are essential for filing the incorporation documents.
• Name Reservation: Before registering the LLP, it’s crucial to ensure that the desired name is available and complies with the naming guidelines prescribed by the Ministry of Corporate Affairs. StartupsFiling may help in conducting a name availability search and reserving the name for your LLP.
• Consultation and Support: StartupsFiling may offer consultation and support throughout the LLP registration process. This could include clarifying doubts, guiding you through the necessary steps, and addressing any concerns or queries you may have regarding LLP registration.

Understand the difference between LLP and Partnership Firm

Particulars	LLP	Partnership Firm
Governing Statute	LLPs are governed by the Limited Liability Partnership Act 2008	Partnership Firm is governed under the Indian Partnership Act 1932
LLP Registration Authority	An LLP is compulsorily required to submit the forms with documents to the Registrar of Companies	The obligation to register is not mandatory, and also if registered, then the form is submitted with the Registrars of Firms
Regulatory document	LLP agreement is the regulatory document for the LLP	For a partnership firm, Partnership agreement is the regulatory document
Annual form Filing	Every year, the LLP is required to file its annual return, statement of accounts, and solvency with the Registrar of Companies.	It is not necessary for a partnership firm to submit any yearly reports to the Registrar of Firms.
Contractual freedom	An LLP is allowed to enter into a contract with another individual or an entity, that is too under its name.	A partnership is not allowed to enter into a contract in its name
Separate Legal Entity	LLP is considered as a different and separate legal entity in the eyes of law	A partnership firm does not have a separate identity from its partners.
Name	LLP name must be followed by “LLP”	A partnership firm does not have any name requirement as such
Assets ownership	LLP can have and own assets in its name	A partnership firm does not have the authority to have assets under its name, only its partners own the assets
DSC requirement	There is a DSC and DIN requirement for each partner in order to be partner in an LLP	For being a partner in a partnership firm, there is requirement of neither DIN nor DSC.

Know the LLP Registration Process

If you have found your destination in the face of a Limited Liability Partnership, then let StartupsFiling map the road to your destination. Following the given route, the LLP registration process becomes easy to handle.

Step 1: Digital Signature Certificate [DSC]

The firs step on the road to LLP registration process is to obtain the DSC for each o the partners. DSC is the digital signature certificate which authenticates the digital presence of an individual. This can be obtained only through government certified websites like e-mudra, etc.

Step 2: Director Identification Number [DIN]

Once the DSC has been obtained, the next step is to obtain DIN which is a unique identification number for the partner of the company. This is required in different prospects of business such as tax deductions, tax filing, etc.

Step 3: Select the Company name

Now as a partner of the limited liability partnership, you have both DSC and DIN, it is time to select the name for your LLP which should be within the guidelines, which has to be applied for further approval from Ministry of Corporate Affairs.

Step 4: Fill Form-2, Form-3, and Form-4

Once the name has been decided, now you may fill the form FiLLiP, which is the form for LLP registration under Indian legislation. This form asks for details such LLP agreement, details of partners, office address, and then get it signed by all the partners. Make sure to fill the form carefully to avoid any sort of errors.

Step 5: LLP agreement

When you are done with filing of the form, you may now draft the LLP agreement for all the partners to sign it which must include the reason and purpose of partnership, obligations, duties, rights, profit sharing, along with partners’ details. This LLP agreement is needed to be attached with the form FiLLiP for the final filing.  

Step 6: Fee Payment & Incorporation

You may now pay the fee for the LLP registration at the portal after filing of the form along with attached documents. Now is time to lay back and relax for the verification process to take place. Once done, you will receive your certificate for incorporation.

Step 7: PAN and TAN Applications  

Once you receive the certificate of incorporation, you may now apply for the PAN & TAN under your LLP name.

Timeline to follow in LLP Registration process

1. Obtaining DSC: It takes on an average of 1-3 days to obtain the DSC.
2. Obtaining DIN: It takes again 1 business day on an average to obtain the DIN.
3. Form Filing & LLP agreement: Once DSC and DIN have been obtained, it takes 7-8 business days to prepare the LLP agreement along with other documents and then filing the forms.
4. Certificate of Incorporation: At last, it takes two weeks for the verification process to takes place, which leads to approval and the receipt of the certificate of incorporation.

In conclusion, the entire process of LLP registration is of three weeks, which sometimes extends up to four weeks in case of delayed filing.