In this article, we will discuss the following points in the respect of limited liability partnership (LLP) firms in Gurugram, Haryana

  • Introduction
  • Features of Limited Liability Partnership (LLP)
  • Benefits of Limited Liability Partnership (LLP) in Gurugram, Haryana
  • Documents required for the registration of limited liability partnership firm
  • Checklist for LLP registration
  • Registration of Limited Liability Partnership (LLP) in Gurugram, Haryana

Introduction

LLP stands for Limited Liability Partnership. Limited Liability Partnership in Gurugram, Haryana is a legal entity and it is registered under the “Limited Liability Partnership Act 2008”. The concept of Limited Liability Partnership in Gurugram, Haryana has been introduced in Gurugram, Haryana in 2008. A limited liability partnership contains the benefits of the partnership firm with the limited liability. A limited liability partnership (LLP) in Gurugram, Haryana contains the features of both the company and the partnership firm. For a limited liability partnership, there is the requirement of a minimum of 2 partners but there is no maximum limit of the number of partners of an LLP. These designated partners should be individuals and at least 1 designated partner should be a resident of Gurugram, Haryana. All the designated partners of the limited liability partnership will comply with all the provisions of the Limited Liability Partnership Act 2008 and they will also comply with all the provisions which are mentioned in the Limited Liability Partnership Agreement. The rights & duties of the partners are mentioned in the limited liability partnership agreement.

Features of Limited Liability Partnership (LLP) in Gurugram, Haryana

The limited liability partnership (LLP) in Gurugram, Haryana contains the following features-

  1. LLP incorporated under the Limited Liability Partnership Act 2008.
  2. Limited Liability Partnership is a Body Corporate– As per section 3 of the Limited Liability Partnership Act 2008 the LLP is a body corporate which is formed and incorporated under Limited Liability Partnership Act 2008 and the existence of the LLP is separate from its members.
  • Limited Liability– The liability of the partners is limited. The partners of the limited liability partnership are liable to the extent of their capital contribution which is made by them in such LLP. The personal assets are not used for the payment of debts and liability of the limited liability partnership. In the case of a partnership firm, the liability of the partners is unlimited and they are personally liable for the payment of dues and creditors but in the case of the limited liability partnership, the liability is limited.
  • Separate Legal Entity– The limited liability partnership has a separate legal existence in Gurugram, Haryana and it is a separate legal entity like a company.
  • Artificial Legal Person– The LLP in Gurugram, Haryana is an artificial legal person and it has all the rights of an individual.
  • Common Seal– In the case of LLP, there is also a concept of the common seal but it is not mandatory for the LLP, if the LLP wants, it can create a common seal.
  • Business with a profit motive– The limited liability partnership cannot create for charitable or not for profit purposes. It will be created with the motive to earn a profit.
  • Requirement of Partners– in the case of a limited liability partnership there is the requirement of a minimum of 2 partners and they will perform their activities, rights, and duties as per the LLP agreement which is made between them.
  • Lower Incorporation Cost-The incorporation cost of the limited liability partnership is very low.
  • Membership- In the limited liability partnership, the following persons can be the partners-
    • Individual
    • Foreign Companies
    • Gurugram, Haryanan Companies
    • Limited Liability Partnership Firm
    • Foreign Limited Liability Partnership Firm
  • Perpetual Existence– The existence of the limited liability partnership firm is perpetual it will not be affected by the existence, death, retirement, and insolvency of the partners i.e. it will not end but it will be reconstituted.
  • The limited liability partnership contains less legal compliance.

Benefits of Limited Liability Partnership (LLP) in Gurugram, Haryana

The benefits from the Limited Liability Partnership (LLP) in Gurugram, Haryana are as follows-

  • Easy to form– The incorporation of a Limited Liability Partnership (LLP) in Gurugram, Haryana is very easy and less expensive. It does not involve many formalities and legal compliances as compared to the company and partnership firm.
  • No requirement of minimum capital contribution– For the incorporation of Limited Liability Partnership (LLP) in Gurugram, Haryana, there is no minimum requirement of capital contribution. The LLP can be formed with a lower amount of capital and capital may be in any form, it may be in the form of any tangible assets or intangible assets.
  • Lower compliance burden– In the case of Limited Liability Partnership (LLP) in Gurugram, Haryana, there are very few legal compliances. As per the Limited Liability Partnership Act 2008, the LLP is required to submit only 2 statements (i) Statements of Accounts & Solvency (ii) Annual Return. Normally in the case of companies, there ismuch legal compliance and all the compliances are required to be complying by the company.
  • Taxation on Limited Liability Partnership (LLP) in Gurugram, Haryana– The limited liability partnership is not required to make the payment of tax on the income and the share of the partners. As per the income tax act any payment which is made by the partnership firm in the form of salary, bonus, commission, remuneration, and interest will be eligible for the deduction and the limited liability partnership firm is not liable to make the payment of dividend distribution tax. The provision of deemed dividends is also not applicable to the limited liability partnership firm.
  • Dividend Distribution Tax (DDT) not applicable– As per the provision of income tax act if any person withdrawn the amount of profit from the company, the provision of DDT will be applicable and there is the requirement to pay additional tax liability @ 15% in the form of DDT but in the case of limited liability partnership firm the concept of DDT is not applicable when the partner withdrawn any amount of profit from the limited liability partnership firm.
  • The Limited Liability Partnership (LLP) in Gurugram, Haryana can raise money from financial institutions and PE investors.
  • Transferable ownership– In the case of LLP it is very easy to transfer the ownership in the accordance with the terms and conditions of the LLP agreement.
  • Capacity to sue– The Limited Liability Partnership (LLP) in Gurugram, Haryana can sue in its name and the partners of the LLP are not liable to be sued for the dues against the LLP.
  • No compulsory audit- As per the Limited Liability Partnership Act 2008, the LLP is required to audit their accounts when–
    • The amount of contribution is more than 25 lakhs or
    • The amount of turnover is more than 40 lakhs.

If any of the above condition is satisfied, there is the requirement of audit otherwise there is no need for an audit.

Documents required for the registration of Limited Liability Partnership (LLP) in Gurugram, Haryana

Now we will discuss the list of documents that are required for the registration of Limited Liability Partnership (LLP) in Gurugram, Haryana.

(A)-Documents of the Partners–

  1. ID proof of the Partners– For the registration of LLP, the ID proofs of the partners is required. In the form of ID proofs, the partners will provide a PAN card, Aadhaar card, and Voter ID but the PAN card act as a primary ID proof.
  2. Address proof of the Partners– For the registration of LLP, the partners will provide their address proofs. In the form of address proof they will provide Voter ID, Passport, Driving License, and Aadhaar card.
  3. Photographs– For the registration of LLP, the partners will provide their passport size photographs.
  4. Passport– if there is any person how is a non-resident of Gurugram, Haryana (NRI) and wants to be a member of the Gurugram, Haryanan LLP, he will submit a copy of his passport mandatorily. The passport of such NRI should be notarized.
  5. Resident proof of the partners– – For the registration of LLP, the partners will provide the resident proof. In the form of resident proof, the partner will provide the latest bank statement or telephone bill or electricity bill or gas bill, etc. These proofs contain the name which is mention in the PAN card of the partner and such proof should not be older more than 2-3 months.
  6. Specimen Signature.

(B) Documents required for Limited Liability Partnership (LLP) Registration in Gurugram, Haryana-

  1. Registered Office Address Proof– The registered office address proof is required to be submitted by the LLP during the registration of Limited Liability Partnership (LLP) in Gurugram, Haryana or within 30 days of the incorporation of the LLP. If the premise of the registered office is a rented property, a rent agreement and a NOC (no objection certificate) are required from the owner of such premise as an address proof and gas bill or electricity bill or telephone bill, etc. is also required to submit as an address proof.If the premise of the registered office is own property then there is the requirement to submit sale deed and the ownership deed of such premise as an address proof.
  2. DSC (Digital Signature Certificate)- In the case of Limited Liability Partnership (LLP) in Gurugram, Haryana, at least one designated partner should have DSC so that he can be authorized and certified all the relevant documents on the behalf of the LLP.

Checklist for Limited Liability Partnership (LLP) Registration in Gurugram, Haryana

  1. At least 2 partners.
  2. DIN (Directors Identification Number) of all the designated partners.
  3. DSC (Digital Signature Certificate) of all the designated partners.
  4. Capital Contribution which is made by the partners.
  5. LLP agreement which is made between the partners with the mutual decision.
  6. Name of Limited Liability Partnership (LLP) in Gurugram, Haryana
  7. Registered office address proof.

Registration of Limited Liability Partnership (LLP) Registration in Gurugram, Haryana

Now we will discuss the process of LLP registration step by step-

  1. Step No.1- Obtain DSC (Digital Signature Certificate) of Partners– Before making the application for the registration of LLP, there is the requirement to obtain the DSC of the designated partner of the limited liability partnership firm (LLP). Because now all the process of LLP registration is online and there is the requirement of the digital signature of the partner on the relevant documents, for the purpose of this the DSC is mandatory.
  2. Step No.2- Apply for the DIN (Directors Identification Number)- Any person who wants to be the partner of the LLP will apply for the DIN and he will make an application in the form DIR-3.
  3. Step No.3- Apply for the name of LLP– The LLP will make an application for a reservation the name of the proposed LLP. The name of the LLP should be unique. If the proposed name is different from the existing LLP then the register will approve it otherwise the application for the name will be rejected by the register.
  4. Step No.4- Incorporation of limited liability partnership firm– When the LLP file the required form for the registration of LLP and submit such form with the relevant information and required documents (discuss above) and make the payment of fee as per the Annexure ‘A’ then the register after making relevant inquiry issue the certificate of registration/ incorporation to the limited liability partnership firm.
  5. Step No.5- Apply for PAN and TAN– After the registration of LLP, Limited Liability Partnership (LLP) in Gurugram, Haryana will make an application for the PAN as well as TAN. In the case of anLLP, the application for TAN and PAN is made separately online or offline mode. The application for the PAN and TAN is made by the LLP to the income tax department in the forms 49A & 49B respectively and with such application the LLP will also submit the incorporation certificate of the LLP.
  6. Step No. 6- File LLP (limited liability partnership) agreement- When the Limited Liability Partnership (LLP) in Gurugram, Haryana obtains the incorporation letter/certificate of the LLP; it will prepare an LLP agreement. Such Limited Liability Partnership (LLP) in Gurugram, Haryana agreement will be prepared between all the partners of the LLP and it will govern all the mutual rights and duties amongst the partners. The LLP agreement is required to be filed within the period of 30 days from the date of incorporation of LLP in form 3 and it is required to be filed online. Such LLP agreements must be printed on the Stump Paper.
  7. On the basis of these simple steps, we can register our limited liability partnership firm and can start the business activities in the legal name of LLP.

FAQs on the Limited Liability Partnership (LLP) in Gurugram, Haryana

What is Limited Liability Partnership (LLP) in Gurugram, Haryana?

Answer- LLP stands for Limited Liability Partnership. Limited Liability Partnership is a legal entity and it is registered under the “Limited Liability Partnership Act 2008”. The concept of Limited Liability Partnership has been introduced in Gurugram, Haryana in 2008. A limited liability partnership contains the features of both the company and the partnership firm. There is the requirement of a minimum of 2 partners for the incorporation of an LLP, but there is no maximum limit of the number of partners of an LLP.These designated partners should be individuals and at least 1 designated partner should be a resident of Gurugram, Haryana.The liability of the partners is limited in this partnership firm.

What are the steps to incorporate the Limited Liability Partnership (LLP) in Gurugram, Haryana?

Answer- The steps of Limited Liability Partnership (LLP) in Gurugram, Haryana registration are as follow-

Step No.1- Obtain Digital Signature Certificate (DSC) of Partners.

Step No.2- Apply for the Directors Identification Number(DIN).

Step No.3- Apply for the approval of the name of the LLP.

Step No.4- Certificate of Incorporation of the LLP

Step No.5- Apply for PAN and TAN of LLP

Step No. 6- File LLP agreement

Can an existing company be converted into Limited Liability Partnership (LLP) in Gurugram, Haryana?

Answer- Yes, an existing company can be converted into LLP according to the provisions of clause 58 and schedule III and IV of the LLP Act 2008 and there is the requirement to file Form 18 and Form 2 for such conversion.

Can an existing partnership be converted into Limited Liability Partnership (LLP) in Gurugram, Haryana?

Answer- Yes, an existing partnership converted into LLP according to the provisions of clause 58 and schedule II of the LLP Act 2008 and Form 17 along with Form 2 is required to be filed for such conversion.

Can an existing listed company be converted into Limited Liability Partnership (LLP) in Gurugram, Haryana?

Answer- No, the existing listed company converted into Limited Liability Partnership (LLP) in Gurugram, Haryana only private limited company and unlisted public limited company can be converted into LLP.

Whether the name of Limited Liability Partnership (LLP) in Gurugram, Haryana can use ‘Private Limited Company’ or ‘Limited Company’?

Answer- No, the name of the LLP will use ‘Limited Liability Partnership’ of ‘LLP’ at the end of its name. it will not use ‘Private Limited Company’ or ‘Limited Company’.

What is “Statement of Accounts and Solvency” for Limited Liability Partnership (LLP) in Gurugram, Haryana?

Answer- Statement of Accounts and Solvency is a statement that will contain a declaration on the solvency of the LLP and it also contains the information of Assets & the Liabilities, Income & Expenses of the LLP. Every LLP is required to file it in Form 8 on annual basis.

What is the structure of an Limited Liability Partnership (LLP) in Gurugram, Haryana?

Answer- The LLP is a separate legal entity and it is a body corporate that has a perpetual succession.

What are the advantages to incorporate an Limited Liability Partnership (LLP) in Gurugram, Haryana?

Answer- There are many benefits from the Limited Liability Partnership (LLP) in Gurugram, Haryana

  1. Limited liability of the partners.
  2. Suitable for the small size business.
  3. Business with a profit motive.
  4. Organized on the basis of LLP agreement.
  5. Provides flexibility because there are legal requirements.
  6. Incorporated under law.

Whether an Limited Liability Partnership (LLP) in Gurugram, Haryana can start for charitable or other not for profit objectives?

Answer- No, LLP cannot start for charitable or other not for profit objectives. In the case of LLP, there is an essential requirement is that it will create for the profit motive only.

Whether provisions of the Gurugram, Haryanan Partnership Act, 1932 would be applicable to Limited Liability Partnership (LLP) in Gurugram, Haryana?

Answer- No, on the LLP the provision of LLP Act 2008 will be applicable.

Who is eligible to become a partner of an Limited Liability Partnership (LLP) in Gurugram, Haryana?

Answer- Any individual or body corporate will be eligible to become a partner of an LLP. The following individual will not be eligible –

  1. The person of an unsound mind.
  2. Insolvent person.

Whether foreigners can incorporate Limited Liability Partnership (LLP) in Gurugram, Haryana?

Answer- Yes, as per the provision of the LLP Act 2008, the foreign companies & LLPs are eligible to incorporate LLP in Gurugram, Haryana but there is a condition that at least 1 partner of such LLP should be an Gurugram, Haryanan resident.

Whether the audit of the Limited Liability Partnership (LLP) in Gurugram, Haryana is mandatory?

Answer – No, the audit of the LLP is mandatory but if any of the condition is satisfied then the books of accounts of the LLP is required to be audited-

  • The amount of contribution is more than 25 lakhs or
  • The amount of turnover is more than 40 lakhs.

What is the checklist for the registration of Limited Liability Partnership (LLP) in Gurugram, Haryana?

Answer- Checklist for Limited Liability Partnership (LLP) Registration in Gurugram, Haryana

  1. At least 2 partners.
  2. DIN of all the designated partners.
  3. DSC of one of the designated partners.
  4. Name of LLP.
  5. Registered office address proof.
  6. Identify or ID proofs of the partners.
  7. Address Proofs of the Partners.
  8. Capital Contribution is made by the partners.
  9. LLP agreement is made between the partners with the mutual decision.