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Limited Liability Partnership Formation

Limited Liability Partnership (LLP) is one among the attractive corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The process of registration is very simplified in case of LLPs, merely an agreement is required to be executed and necessary appointment of partners and designated partners needs to be undertaken.

FDI in LLP Company

In India, PROI or foreign entities are permitted to undertake 100% FDI in LLP under automatic route and there are no FDI-linked performance conditions. In addition, LLPs are also permitted to make downstream investment in another company or LLP in sectors in which 100% FDI is allowed under the automatic route.

Timeline

We at CorpAcumen Global ensure to undertake your comprehensive registration requirements along with other filings for FDI in LLPs. We aim to complete the registration process within 20 working days post obtaining necessary details from our clients.

Features

Requirement of members

Minimum 2 partners, in case of partner being an entity, a nominee/ authorised representative must be appointed (who shall also be the designated partner)
One being Indian Resident
Designated Partners must secure a Directors Identification Number (DIN) and Digital Signature Certificate (DSC), prior to incorporation [Direct link of DIN and DSC].

Liability of members

Separate and distinct identity from its members
Limited liability of members and protection of personal assets

Capital requirement

There is no minimum capital contribution for a LLP, it shall be at the discretion of the Partners
Further capital may be raised by obtaining loans from Bank

Charter documents

Merely a Limited Liability Partnership Agreement is required to be executed among the Partners governing the functioning, profit sharing, rights and liabilities of its Partners and Designated Partners

Mandatory registered office

Registered office is mandatorily to be maintained in the territory of India
Part of state wherein the office is situated decides the jurisdiction of the Registrar of Companies.

Form of capital and further funding

Complying with necessary criteria, bank loans may be raised in the name of LLP
Complying with necessary criteria, bank loans may be raised in the name of LLP

Financial year

Financial year begins from 1st April and ends on 31st March as per Indian Companies Act

Annual compliances

Filing of Statement of Account and Solvency and Annual Return on yearly basis
Income Tax Filings
GST Returns Filing, if applicable

Taxation requirements

Partnership firm tax payable at prevailing rates
Payment of Tax Deducted at Source (TDS)
Payment of Goods and Services Tax

Other Registrations

Mandatory	Optional
Director Identification and Digital Signature Certificates	Registration of Micro, Small and Medium Enterprise
Opening of Bank Account	Obtain Import-Export Code
Registration of PAN and TAN	Registration under Labour Laws
Goods and Services Tax	Registration for Intellectual Property

Documentation Required

Application of DIN and DSC

Personal details, occupational details and educational qualifications of Designated Partners
Photo Id Proof and Address Proof of proposed designated partners, one being resident (e.g. Passport, Driving License, PAN, Voters ID card etc.), passport is mandatory in case of foreign nationals

Filing of RUN Form for name availability

List of Proposed Names
No-objection certificate from the Regulator in case of sectoral approvals like RBI, SEBI, DIPP, etc., as may be applicable
Trademark NOC, where applicable

Filing of Incorporation Form

Residential proof of director-Bank/ Electricity Bill/ Telephone Bill/ Mobile Bill
Relevant No-objections and disclosures of directors
Photo Id Proof and Address Proof of proposed partners (e.g. Passport, Driving License, PAN, Voters ID card etc.), passport is mandatory in case of foreign nationals
Residential proof of director-Bank/ Electricity Bill/ Telephone Bill/ Mobile Bill
Subscriber Sheet including consent of designated partners
In case of owned premises, registered document of the title of the premises of the registered office in the name of the LLP
In case of rented premises, copy of lease/rent agreement in the name of Company
Proof of premises like telephone, gas and electricity bill depicting the address of the premises in the name of the owner
Trademark NOC, where applicable

To be noted:

Documents should not be older than 2 months from the date of filing of the eForms.
All the signed documents coming from outside India should be Notarized (in case of country part of Commonwealth country), or Notarized cum Apostille (in case of country part of Hague Convention), as applicable.
In case of proof, which is in languages other than Hindi / English, the proofs should be translated in Hindi / English from a professional translator carrying his details (name, signature, address) and seal. In the case of foreign nationals, translation done by the notary of home country is also acceptable.

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