Part 3: Legal Structures to Start your business:: LLP Incorporation (Limited Liability Partnership)

In our last two editions we had discussed about most basic form of Company Registration i.e. Proprietorship Firm/Partnership Firm Registration (http://ca4you.in/blog/category/startup-accounting-gyaan-get-ready-to-follow-your-dreams/) and the new method of company registration services i.e One Person Company (OPC) http://ca4you.in/blog/2016/04/07/part-2-legal-structures-to-start-your-business-one-person-company-opc/

This edition will focus on LLP Incorporation (Limited Liability Incorporation) a relatively new concept in India (and a highly popular concept in west). This form of business registration suits people who are looking to save some money and our not very focused on fund raising (especially debt funding)

WHY LIMITED LIABLITY PARTNERSHIP (LLP) INCORPORATION?

Limited Liability Partnership (LLP) company is widely accepted form of company registration in west and is gaining momentum in India as well now. Started in 2008, LLP registration has seen a phenomenal growth from 2011 to 2014. The cost of LLP incorporation is lesser than a Private Limited Company incorporation and compliances are less stringent. Though as far as fund raising is concerned, Pvt Ltd Company has an edge over registered LLP.  Though incorporated LLP (Limited Liability Partnership) Firm is better placed to raise fund than One Person Company. For LLP incorporation, we would be needing 2 DINs and 1 DSC. It also has huge Tax Advantages over Partnership or Proprietorship firms.

Advantages:

Liability: Scared of implication? Don't Worry! Director's (Owners) Liability is Limited in case of any defaults  in LLP

Ease: Wary of Strict compliance? The compliances and cost is well within your range in case of Registering a business as LLP

Credibility: Big Corporates wary to do business? More credibility with Clients while doing business as LLP incorporated company

Easy To Close: Didn't quite work out? No issues! it is simple to close a Limited Liability Partnership Company.

TIME TAKEN:

LLP Incorporation in Delhi takes 10 Working Days (Appx)

STEPS TO REGISTER  

Step 1: DSC for 1 director + DIN for up to 2 director
Step 2: Name Confirmation from ROC
Step 3: LLP MOA/AOA Drafting
Step 4: Certificate of Incorporation
Step 5: LLP PAN & TAN
Step 6: Go get it……

COST: 

Cost of LLP Incorporation in Delhi is Rs 12,500/-

NUTSHELL:

Best suited for Individuals who are looking to start in bootstrap mode and are not very finicky on debt funding. 

Hope this article was informative. For more info visit:http://ca4you.in/company_registration.php#tab5

 Also call us at +91 8447265465 or mail us on vivek@rrs-group.in for any further query

In Part 4, where we will discuss about the most popular form of registration of company in India, Private Limited Company Registration Online