While looking at some businesses, you might have noticed that some organisations identify as LLP, and others might not. Many business owners prefer to register as an LLP because it provides the best aspects of a company and partnership. Since an LLP organisation has unique hybrid features, many small and medium-sized businesses can benefit from registering as an LLP organisation. In a Limited Liability Partnership setting, if an organisation has multiple partners, all the partners are responsible and have limited liability only for their contribution. No matter how many partners are there, no partner would be responsible for the acts of other partners.
The LLP bill was introduced in India in 2006, and since then, Limited Liability Partnership Registration in India has become an instant favourite among small and medium-sized businesses. Some of the advantages of LLP registration in Hyderabad for small businesses are -
- No limit on partners: To register your business as an LLP, you might need a minimum of two partners; however, there is no limit to the maximum number of partners. It is one of the main reasons many small and medium-sized businesses choose LLP registration in Hyderabad, as it provides them with flexibility in a number of partners. Since registering it as a private company will restrict the maximum number of partners to 200.
- Separate legal entity: LLP has a separate legal entity that is distinct from its partners. If due to some reasons, partners would want to file a lawsuit, an LLP can sue and be sued in its name. The continuity of an LLP also does not depend on its partners, as the partners can change from time to time.
- Lower registration cost: The LLP registration fees in Hyderabad is far less compared to any other companies like private limited or public limited company. The lower registration cost is another reason small and medium-sized businesses prefer to register their organisation as LLP.
- No minimum capital: Unlike other companies, you do not require a minimum capital to form an LLP. Whatever capital the partners contribute is good enough to form an LLP; this amount can be tangible, movable, immovable, or intangible property or other benefits to the LLP.
- No compulsory audit: Unlike public and private limited companies, companies registered as LLP do not require getting their accounts audited. An LLP company is only required to audit its accounts if the contributions of the LLP exceed Rs. 25 Lakhs or the annual turnover is more than Rs. 40 Lakhs.
These are some of the top benefits of companies with LLP registration in Hyderabad and all over India.
The Process of LLP Registration in Hyderabad
To successfully register a company as an LLP in Hyderabad, you will need to follow a certain set of steps along with getting ready with LLP registration fees in Hyderabad. Here are the steps of forming an LLP organisation in Hyderabad -
- Apply for DSC: Even before you apply for LLP registration, the first thing you should do is obtain a digital signature certificate (DSC). All the designated partners of the LLP should have digital signatures to their names because all the documents that are filed online for LLP registration will require the digital signatures of all partners.
- Apply for DIN: The next step for forming an LLP is applying to the DIN with Form DIR-3. The DIN is for all the designated partners or those who intend to be a partner one day. The documents that should be attached with the DIR-3 forms are Aadhaar and PAN cards, and the form should be signed by either one of the CEO, Managing Director, Director, CFO, or a full-time company secretary.
- Name approval: The next crucial step is to file for LLP-RUN (Limited Liability Partnership-Reserve Unique Name). The Central Registration Centre will process the under non-STP to look if any other company names resemble yours. If yes, you will need to resubmit it; if your name is approved, you will need to pay a fee.
- Incorporation of LLP: You will need to fill out a Form 2 application form to incorporate your LLP. All the details like the name of the partners, designation, etc., should be filled in correctly and signed digitally by all the partners. Partners should also contribute the fees, and the form has to be signed by Chartered Accountants, Advocates, etc.
- Filing of LLP agreement: Once the incorporation of LLP is done, within 30 days, you should file for LLP agreement with Form 3. The LLP agreement should be printed on stamp paper, and it will govern the mutual rights and duties of designated partners.
What documents should you Keep Ready for LLP Registration?
As you and your partners are preparing to form an LLP and register it, here are a few of the documents you should keep handy.
Documents of partners: All the designated partners of the LLP should keep the following documents ready -
- PAN card or ID proof
- Address proof: Address proof can include Voter ID, Passport, Driver’s License, Aadhaar Card, etc.
- Proof of residence: It may include the latest bank statement, telephone bill, mobile bill, electricity bill, etc.
- Passport (if any of the partners are foreign nationals or NRIs)
- Passport size photograph
Documents for LLP: Here are the LLP documents that you should keep in handy while getting ready to register your LLP.
- Proof of registered office address: You will have to submit the office address proof during registration or within 30 days of registration.
- Digital Signature Certificate: A designated partner will have to opt for a digital signature certificate as nearly all the documents will be required to be signed digitally.
The LLP registration process is undoubtedly a lengthy one; however, it is necessary to follow all the steps correctly to register your LLP successfully. Even though the LLP registration fees in Hyderabad might vary depending upon the agency you choose to work with. Even though there is no fixed time frame, depending on departmental approval, obtaining DSC to Filing Form 3 might take ten days, more or less.