LLPs are a versatile legal and tax structure that enables partners to benefit from economies of scale by working together while also limiting their liability for the actions of other partners. If the partnership fails, creditors will not be able to seize a partner's personal assets or income. They're common in professional services firms such as law firms, accounting firms, and wealth managers.
LLPs are registered and governed under the Limited Liability Partnership Act, 2008. Due to the high influx of startups in the city, LLP company registration in Bangalore has become a high-priority legal service. Here is all that you need to learn about them to get your company on the correct track.
As it is a cross between a corporation and a partnership, an LLP lets you reap the advantages of both entities. Its pros extend to areas such as capital benefits, low-risk profile, and legal protection. Here are some reasons why you should opt for an LLP registration for your venture.
You must first obtain the digital signatures of the proposed LLP's chosen partners before beginning the registration process. This is because all LLP paperwork must be filed online and digitally signed. The designated partner's digital signature certificates must be obtained from government-recognized certifying agencies.
You must get the DINs of all designated partners or those who want to become designated partners, in the proposed limited liability partnership (LLP). The application for DIN allotment must be submitted using Form DIR-3.
The form requires you to attach a scanned copy of documents (typically Aadhaar and PAN). The form must be signed by a Company Secretary who works full-time for the company or by the Managing Director/Director/CEO/CFO of the existing company where the applicant will be appointed as a director.
LLP-RUN (Limited Liability Partnership-Reserve Unique Name) is filed to reserve the name of the proposed LLP. However, before entering the name in the form, please use the MCA's free name search facility. This will help you choose names that are unique. The registrar will only approve names that are not offensive to the Central Government and that do not match any existing partnership firm, limited liability partnership, corporation, or trademark.
The registrar may approve or reject the RUN-LLP form and fees as per Annexure ‘A' depending on its accuracy.
The LLP agreement, Form 3, must be filed within 30 days of the date of incorporation. Stamp Paper must be used to print the LLP Agreement. Soon after, your LLP Registration process will be considered complete. Under professional guidance, you could execute the process from start to finish within 10 days, subject to departmental approval and revert from the respective department.
LLP registration costs in Bangalore can vary based on the number of partners, capital contribution, and stamp duty if you file by yourself. If you're looking to speed up the process and make sure that no documentation errors occur that might have grave consequences in the long term, then seek help from industry experts such as My Legal Clinic. The team will walk you through the price quotations and filing procedure without fail.
LLP registrations act as a foundational stone for your business so take no risks regarding. Contact My Legal Clinic now to receive assistance regarding all your LLP queries.