Limited Liability Partnership Registration in Bangalore

  • The business is owned, managed and controlled by two or more persons as the Partners.
  • There is no limit on the maximum number of members in case of LLP.
  • Unlike in a Partnership, One Partner is not liable for another Partner’s misconduct or negligence.
  • LLP provides the benefit of Limited Liability

Important points to be noted

  • Recommended form of business especially for Professionals, Micro and Small Enterprises, family or closely held business, real estate business etc.
  • Minimum compliance and recommended for quick and easy set-up.
  • LLP having capital less than Rs. 25 Lakhs or turnover less than Rs. 40 Lakhs per year is not required to have formal audit.
  • The LLP can own or acquire property in its own name.

List of Documents required

  • PAN & Aadhaar of proposed partners (Self attested).
  • Identity Proof (Any One): Passport/Voter ID/Driving License.
  • Residence Proof, should be the latest month (Any One): Bank Statement/Electricity bill/Telephone bill/Mobile Bill.
  • One Passport size photo of all partners.
  • Registered office address Proof: Electricity bill of the latest month in the name of the owner.
Frequently Asked Questions

1. Designated Partner Vs Partner in an LLP

Designated Partners play a similar role of a Director and Partners play a similar role of a Shareholder in a Private Limited Company. The Designated Partner is responsible for the management and execution of all things required to be carried out by the LLP including the Compliance requirements as defined by the LLP Act. The Partners are responsible for the decision making, especially those that have a financial impact on the LLP.

2. Can an NRI start LLP in India?

Yes, Non-resident Indian or foreign national can start an LLP in India. However, the LLP should have One Resident Designated Partner.

3. Capital Requirement

No specific limit on the minimum capital for starting the business. Capital can be in the form of tangible or intangible property.

4. Is Foreign Direct Investment (FDI) allowed in LLP?

Yes, Foreign Direct Investment (FDI) is allowed in LLP under the automatic route in sectors allowed by the Foreign Investments Promotion Board (FIPB). However, Foreign Institutional Investors (FIIs) and Foreign Venture Capital Investors (FVCIs) will not be permitted to invest in LLPs. LLPs will also not be permitted to avail External Commercial Borrowings (ECBs).

5. Compliance requirement

Income Tax filing in the name of the business has to be filed every year. LLPs are required to file an annual filing with the Registrar each year. However, if the LLP has a turnover of less than Rs.40 lakhs and/or has a capital contribution of less than Rs.25 lakhs, the financial statements do not have to be audited.

6. Conversion of LLP into Company

It can be converted. All the assets and liabilities of the LLP must be transferred to the private limited company.