Question 1

What's included in the LLP Registration fee?

Accepted Answer

The starting fee of ₹3,799 covers specialist consultation, document preparation, the government filing fee, and tracking until you receive the final certificate. Additional government fees may apply for objections, renewals, or expedited processing.

Question 2

How long does llp registration take?

Accepted Answer

Turnaround depends on the specifics of your case. Once we scope your requirements we'll give you a realistic timeline with milestones.

Question 3

What documents will I need to provide?

Accepted Answer

Most filings require identity proof (PAN/Aadhaar/passport), address proof, business registration documents, and (for IP filings) examples of use. Your specialist will send a tailored checklist within 24 hours of starting.

Question 4

What if my application is rejected?

Accepted Answer

If a filing is rejected due to an error on our side, we refile at no extra cost and refund the service fee. If the rejection is due to information you provided, we'll work with you to fix and refile at a discounted fee.

Question 5

What is the difference between an LLP and a Traditional Partnership Firm?

Accepted Answer

The most significant difference is liability. In a traditional partnership, partners have unlimited personal liability for the firm's debts. In an LLP, a partner's liability is strictly limited to their agreed capital contribution.,Furthermore, an LLP is a separate legal entity from its partners, meaning it can own property and sue or be sued in its own name. A traditional partnership does not have a separate legal existence.,An LLP survives the death or insolvency of a partner (perpetual succession), whereas a traditional partnership typically dissolves.

Question 6

Can I convert my existing Private Limited Company into an LLP?

Accepted Answer

Yes, the Limited Liability Partnership Act, 2008 allows for the conversion of a Private Limited Company or an unlisted Public Company into an LLP.,This is often done to reduce the burden of statutory compliances and eliminate Dividend Distribution Tax (though DDT rules have evolved, the structural simplicity remains).,The process requires filing Form 18, obtaining consent from all shareholders and creditors, and ensuring there are no pending e-forms or charges against the company.

Question 7

Is it mandatory to have an audit for an LLP?

Accepted Answer

No, an audit is not universally mandatory for LLPs from day one.,An LLP's accounts must only be audited by a Chartered Accountant if its annual turnover exceeds ₹40 Lakhs OR if the total capital contribution exceeds ₹25 Lakhs.,This exemption is a massive advantage for small businesses and service providers, saving them significant annual compliance costs.

Question 8

Can an LLP raise venture capital or angel funding?

Accepted Answer

While technically possible, it is practically very difficult and highly uncommon.,Venture Capitalists and Angel Investors prefer Private Limited Companies because they can easily issue Equity Shares, Preference Shares, and structure ESOPs (Employee Stock Ownership Plans).,An LLP does not have shares. Investors would have to become 'Partners', which complicates management and exit strategies. If you plan to raise institutional funding, an LLP is not the right structure.

Question 9

What happens if we fail to file the LLP Agreement within 30 days?

Accepted Answer

The LLP Agreement must be filed via Form 3 within 30 days of the date of incorporation.,If you miss this deadline, the Ministry of Corporate Affairs imposes a severe late fee of ₹100 for every single day of delay.,There is no upper limit to this penalty. A delay of one year will cost you ₹36,500 in penalties alone. We prioritize this filing to ensure our clients never face these fines.

Question 10

Can foreign nationals or NRIs become partners in an LLP?

Accepted Answer

Yes, Foreign Nationals and Non-Resident Indians (NRIs) can become partners or Designated Partners in an Indian LLP.,However, to comply with the law, the LLP must have at least one Designated Partner who is a Resident of India.,Foreign direct investment (FDI) in LLPs is permitted under the automatic route for sectors where 100% FDI is allowed and there are no FDI-linked performance conditions.

Question 11

Does an LLP need to hold Board Meetings?

Accepted Answer

No, an LLP is not required to hold mandatory quarterly Board Meetings or Annual General Meetings (AGMs) like a Private Limited Company.,The partners can meet as and when required, and the rules governing their meetings, voting, and decision-making are entirely dictated by what is drafted in the LLP Agreement.,This provides immense operational flexibility and reduces administrative overhead.

Question 12

How is an LLP taxed in India?

Accepted Answer

An LLP is treated as a partnership firm for income tax purposes. It is taxed at a flat rate of 30% (plus applicable surcharge and cess) on its net income.,A major advantage is that the share of profit distributed to the partners is completely exempt from tax in the hands of the partners.,Additionally, the LLP can claim deductions for interest paid to partners on capital and remuneration paid to working partners, subject to limits prescribed under the Income Tax Act.

Question 13

Can an LLP have employees?

Accepted Answer

Absolutely. An LLP operates like any other business entity and can hire employees, sign employment contracts, and offer salaries.,The LLP must comply with standard labor laws, such as PF, ESIC, and Profession Tax, if the number of employees crosses the respective statutory thresholds.

Question 14

What is the minimum capital required to start an LLP?

Accepted Answer

There is zero minimum capital requirement to incorporate an LLP. You can technically start an LLP with a contribution as low as ₹1,000.,The capital contribution can also consist of tangible, movable, immovable, or intangible property, not just cash.,Government registration fees and stamp duties, however, are calculated based on the total authorized contribution amount.

Question 15

Can an LLP own property in its name?

Accepted Answer

Yes. Because an LLP is a distinct legal entity separate from its partners, it can acquire, own, enjoy, and dispose of property (whether movable, immovable, tangible, or intangible) in its own name.,The partners cannot claim personal ownership over the assets belonging to the LLP.

Question 16

How can a partner exit an LLP?

Accepted Answer

A partner can exit or resign from an LLP in accordance with the terms mentioned in the LLP Agreement.,Typically, it involves giving a written notice of resignation to the other partners (usually 30 days in advance).,Following the resignation, the LLP must file Form 4 with the MCA to update the registry, and potentially amend the LLP agreement via Form 3 to redistribute contributions and profit-sharing ratios.

Question 17

Can an LLP operate multiple businesses under one registration?

Accepted Answer

Yes, an LLP can engage in multiple lines of business provided they are related or ancillary to the main objects specified in the LLP Agreement.,If you want to start a completely unrelated business (e.g., a software consultancy and a restaurant chain), it is generally advisable to either form a separate entity or formally amend the LLP agreement's object clause to encompass the new activities.

Question 18

What is DPIN and how is it different from DIN?

Accepted Answer

DPIN stands for Designated Partner Identification Number, while DIN stands for Director Identification Number.,Functionally and legally, they are exactly the same. They are unique 8-digit numbers allotted by the MCA.,If an individual already holds a DIN for a company, they can use the same DIN as a DPIN for an LLP, and vice versa. You cannot hold both a DPIN and a DIN as separate numbers.

Question 19

Is it possible to close or strike off an LLP easily?

Accepted Answer

Yes, if an LLP is inoperative for one year or more, it can apply to the Registrar for striking off its name by filing Form 24.,This process is faster and cheaper than the formal winding-up process.,However, the LLP must have zero assets and zero liabilities, and the partners must sign an indemnity bond declaring they will settle any future claims that arise after closure.

LLP Registration

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