Who Can Form Llp in India

When filing LLP`s incorporation, documents proving ownership of the registered office would be required. Once created, the documents for the registered office must be submitted to the MCA for LLP registration with the signed subscriber sheet. Gradually, however, this concept of MAT was made applicable to all types of taxpayers in the form of an alternative minimum tax (AMT). According to the Finance Act 2011, the provisions of the AMT only apply to the LLP in the following cases – this depends entirely on the capital you want to invest and the type of business. You can refer and decide – LLP v/s Private Limited Company – comparison between two important forms of business. In a limited liability company (LLP), two or more partners form a special general partnership and have limited liability. It is registered in accordance with the compliance and regulatory guidelines of the Ministry of Corporate Affairs (MCA). The limited liability company (LLP) in India took shape after January 2009, making it an instant hit with startups and professional services. The registration of a limited liability company, governed by the Limited Liability Companies Act 2008, combines the advantages of a partnership with those of a limited liability company. LLP was introduced to offer an easy-to-maintain form of business and to assist owners by offering them limited liability. LLP-RUN (Limited Liability Partnership-Reserve Unique Name) is subject for reservation of the name of the proposed LLP, which will be processed by the Central Registration Center under Non-STP. However, before specifying the name in the form, it is recommended that you use the free name search on the MCA portal. The system will display the list of names of existing companies/LLPs based on the completed search criteria.

For more information on setting up or doing business in India, please contact our professional services consultants at india@dezshira.com. LLP training from receiving the DSC to Application Form 3 takes approximately 15 days, depending on the availability of all documents. The process of incorporating an LLP is very similar to that of a limited liability company. At least two partners are required to initiate the LLP incorporation process and a registered office in India is required. It is important to remember that FDI in LLP is only permitted with prior approval from the Reserve Bank of India (RBI). Therefore, it is recommended that NIRs and foreign domestic project promoters decide to set up a limited liability company where 100% of FDI is allowed by automatic means. In this form, enter the names you want your LLP to have. Up to 6 different options can be entered India Briefing is created by Dezan Shira & Associates. The company supports foreign investors across Asia from offices around the world, including Delhi and Mumbai. Readers can write india@dezshira.com to get more support in their business in India. This will help you choose names that are not similar to existing names. The Registrar will only approve the name if, in the opinion of the central government, the name is not undesirable and does not resemble any existing partnership or LLP or company or brand.

The RUN-LLP form must be accompanied by the fees listed in Schedule “A”, which may be approved or refused by the Registrar. To remedy the defect, the form can be resubmitted within 15 days. There is a provision that provides 2 proposed names for the LLP. Any person resident outside India or a company incorporated outside India, except Bangladesh and Pakistan, may invest in an LLP in the form of capital contributions or by acquiring profit shares. That is to say, an investor can become a partner of a LLP, either by contributing to its capital or by acquiring a partnership share of an existing partner. Maintenance costs and compliance regulations are lower at LLP; Therefore, it has become a preferred form of business organization among entrepreneurs. This form of business structure is ideal for small and medium-sized businesses. New rules allow LLPs of foreign companies to make downstream investments in other companies or LLPs operating in sectors where foreign investment is permitted. An LLP can be registered with any amount of money, as there is no minimum capital requirement to form an LLP.

Limited liability partnerships (LLPs) have become a preferred form of organization for entrepreneurs because they combine the benefits of partnerships and corporations into a single organizational form. and stamp duty based on the State in which LLP was incorporated The application for allocation of the DIN must be made in Form DIR-3. You must attach the scanned copy of the documents (usually Aadhaar and PAN) to the form. The form must be signed by a full-time corporate secretary of the company or by the managing director/director/CEO/CFO of the existing company in which the applicant is to be appointed as a director. The Limited Liability Partnership-Reserve Unique Name (LLP-RUN) form is submitted to reserve the name of the proposed LLP. When submitting the name application, it is recommended that the name not be similar, identical or phonetically similar to existing LLPs, companies, firms and brands. The FiLLip form must be filed with the registrar responsible for the state where the LLP has its registered office for the formation of a limited liability company.