LLP Registration in Bangalore

If you learn the process, LLP Registration in Bangalore can be an easy affair. Read on to learn the correct procedure and everything about LLP registration.
Editorial Team
Published On December 27, 2021 | Last Updated On September 2, 2022

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.

Benefits Of an LLP Registration

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.

  • Disjoint liability: A partner's wrongdoing or misconduct does not create joint liability for the other partner. This ensures that you're responsible for only your actions in the company and safeguards your interests in case of mishaps.
  • Lesser Compliance: Compliance requirements for LLPs are lower in comparison to other forms of business ownerships providing stakeholders with greater freedom to run their venture. The rules are made so by the authorities to promote commerce in the country.
  • Tax Benefits: LLP owners, unlike those of a traditional partnership firm are not liable for corporate taxes and are protected by financial obligations in the event that they fail to pay credit installments on time. This has financial benefits for all of the partners involved.
  • Perpetual Succession: The Limited Liability Partnership Act stipulates that an LLP can continue in existence in perpetuity whereas there is no "perpetual succession" in a general partnership. It means that LLPs can carry on with their business even if one or more of their partners decides to leave. In addition, it has the ability to hold properties in its own name. To put it another way, it is a separate entity from its individual partners.
  • Low Setup Cost: One of the primary reasons that an LLP has become a preferred choice for entity incorporation is the low maintenance costs associated with it, as well as its ease of formation. The cost of forming a limited liability company is lower than the cost of forming a private limited company or a public limited company.

Requirements for LLP Registration in Bangalore

  • There must be at least 2 partners
  • Partners may establish their LLP with any amount of capital
  • One of the partners must be an Indian native
  • Proof of Address
  • Proof of Identity
  • PAN card
  • Director identification number or the designated partnership identification number (DIN/DPIN)
  • Digital signature certificate
  • Utility bill of the registered office
  • No objection certificate from the property owner
  • Copy of rental agreement (if needed)

Procedure For LLP Registration

  • Step-1: Acquire Digital Signature Certificate (DSC)

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.

  • Step-2: Director Identification Number (DIN) Application

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.

  • Step-3: Apply for Name Approval

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. 

  • Step-5: LLP Agreement Drafting and Filing

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.

Charges for an LLP Registration in Bangalore

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.

Conclusion

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.