FAQs - LLP REGISTRATION
Q. How many people are required to incorporate an LLP?
A. A Limited Liability Partnership must have a minimum of two Partners.
Q. How to be a Partner in an LLP?
A. The designated Partner must be a natural person who is above 18 years of age. LLP Act 2018 allows a foreign national including Foreign Companies to incorporate an LLP in India, provided at least one designated partner is Indian.
Q. How much capital is required to start a Limited Liability Partnership?
A. An LLP can be started with any amount of money. There is no such minimum requirement. A partner may contribute with both tangible and intangible property.
Q. What is a Digital Signature Certificate?
A. A DSC is helpful in identifying the sender or the signee electronically. The Ministry of Corporate Affairs (MCA) has made it mandatory for all the designated partners to apply with Digital Signatures.
Q. What is DPIN?
A. Designated Partner Identification Number is a unique identification number that is assigned to all existing and proposed Designated Partners of an LLP. All the present or proposed Directors must have a DPIN.
Q. How long does it take to incorporate an LLP?
A. The time taken for incorporation depends on the submission of relevant documents by the client as well as the approvals from the Government authorities. Vyapaar Pundit helps you incorporate an LLP in 14 to 20 days.
Q. Can NRIs/ Foreign Nationals be designated partners in LLP?
A. An NRI can be a designated partner in a Limited Liability Partnership if they have a Designated Partner Identification Number. However, at least one Designated Partner in the LLP must be a resident Indian.
Q. Do LLPs allow Foreign Direct Investment (FDI)?
A. FDI is allowed under automated route in an LLP by the Foreign Investments Promotion Board (FIPB).
Note: Foreign Institutional Investors and Foreign Capital Investors are not allowed to invest in LLPs.
Q. Can we convert a Partnership Firm into an LLP?
A. An existing Partnership firm or a company that is unlisted can be converted into an LLP. This conversion into an LLP brings in many benefits.
Q. What documents are required for incorporating an LLP?
A. 1. PAN card or Passport
2. Any Identity proof
3. Bank statements
4. Registered Office proof
5. NOC from the landlord to use the premises of the Registered Office
6. Any utility bills of the premises which are not less than two months
Q. Is LLP a good idea?
A. LLP is a combination of both, a Partnership and a Limited Company, offering the advantages of both the companies.
Q. What are the compliances for LLP?
A. An LLP is supposed to file
1. LLP Annual return by Filing Form 11
2. Final Statement of Account and Solvency
3. Income Tax Return
Q. Is it possible for an LLP to raise funds?
A. An LLP cannot raise funds from the public in any form. In an LLP, only partners can contribute their capital and the liability of the Partners is limited to the extent of their contribution.
Q. What is LLP registration?
A. LLP registration is the registration of an entity that provides the advantages of a company and the flexibility of a Partnership firm in a single organization.
Q. Which is better - LLP or Private Limited company?
A. It is always better to incorporate an LLP over a Private Limited company as though both offer the same features. The cost to incorporate an LLP is lesser as compared to a Private Limited company. Similarly, an LLP owner holds the ownership as well as control over the company. The compliances in an LLP are also fewer as compared to a Private Limited company.
Q. How to start an LLP?
A. The process of starting an LLP is completely online. All you need to do is submit the documents online through Vyapaar Pundit. Regular follow-ups will be done by our consultants.
Q. What are the benefits of the LLP?
A. There are various reasons why one should incorporate an LLP. The registration cost is low. There is no requirement for minimum contribution and no limits on the owners of the business. It is not necessary to carry audit. Also, there are fewer tax compliances.