In India, the Limited Liability Partnership (LLP) was established under the Limited Liability Partnership Act, 2008. The fundamental assumption of the Limited Liability Partnership (LLP) is to create an easy-to-manage corporate entity with limited liability for its owners. Since their inception in 2010, LLPs have enjoyed widespread support, with over 1 lakh registrations to date as of September 2014.

The primary advantage of a Limited Liability Partnership over a typical partnership firm is that one partner is not accountable or responsible for the wrongdoing or carelessness of another partner. Additionally, an LLP protects its owners from the LLP's debts. Thus, all partners in an LLP benefit from a form of limited liability protection comparable to that enjoyed by shareholders in a private limited company. However, unlike shareholders in a private limited company, LLP partners have the power to control the business directly.

In India, LLPs are one of the simplest business structures to organise and maintain. With a short establishment process and minimal compliance requirements, LLPs are chosen by professionals, micro and small firms, and closely held businesses. Due to the fact that LLPs are incapable of issuing equity shares, they should be employed for any corporation that intends to raise equity money during the course of its life.

LLP Registration Process

The second half of 2018 saw the successful initiation of Ease of Doing Business (EoDB) reforms that changed the game by introducing simplified and integrated procedures such as the SPICe (Simplified Proforma for Incorporating Company electronically) and the Reserve Unique Name (RUN) required to start a business in India. To take matters a step further, the Ministry of Corporate Affairs has launched another major reform that reengineers the process of Limited Liability Partnership (LLP) incorporation on a significant scale. In this article, we look at the various changes introduced to the LLP registration process in 2018.

The Second Amendment of LLP Rules (2018)

The second revision to the Limited Liability Partnership Rules of 2018 was announced on September 18th and took effect on October 2nd. This revision incorporates several pertinent rules that have been altered, as well as updated eForm layouts pertaining to incorporation. The following are the modified rules.

1. Reserve Unique Name – LLP

The creation of a web service called Reserve Unique Name – Limited Liability Partnership (RUN-LLP), which will take the place of the previous Application for Reservation or Change of Name form (Form 1).Form for Incorporation of LLP (FiLLiP)

The creation of a new integrated form named the Form for Incorporation of Limited Liability Partnership (FiLLiP) to replace the former Form for Incorporation document and subscriber's statement (Form 2), thus merging the following services.

1. Reservation of a name

2. Assigning a Designated Partner Identification Number (DPIN/ DIN)

3. Establishment of the LLP

The Most Recent Notification Regarding Form-FiLLip

According to the most recent notification issued by the MCA on 27th June 2019, the Form-FiLLip is being amended, and stakeholders are urged to utilise the revised forms. The precise notification is as follows:

Form FiLLiP is likely to be amended and made available on the MCA21 LLP Forms Download page on or about 29th June, 2019. Stakeholders are urged to review the most recent version prior to submission.

Documents Required for LLP Registration

Limited Liability Partnerships (LLPs) are a relatively new type of business entity in India, having been introduced in 2008 under the LLP Act. LLPs are most popular among small firms, and with the recent liberalisation of FDI restrictions governing LLPs, interest in forming an LLP has surged among NRIs and Foreign Nationals. We outline and describe the documentation required for LLP registration in this article.

Indian National as a Partner in a Limited Liability Partnership

The following documents are mandatorily required for Indian Nationals incorporating a LLP:

1.     PAN Card: For the LLP registration process, a copy of the proposed Partners' PAN Cards will be required. In India, a PAN, or Permanent Account Number, is a unique identifying number issued by the Income Tax Department.

2.     Along with the PAN Card copy, the suggested Partner must present an address proof and proof of residence. The address evidence presented must include the Partner's name as it appears on the PAN Card, as well as the Partner's most recent address. Additionally, the document must be no more than two months old. For Indian nationals, the following documents are admissible as proof of address.

• Passport

• Election Card or Voter Identity Card

 • Ration Card

 • Driver's License

 • Electricity Bill

2. Residential Proof: In addition to the address proof, a residential proof must be submitted to register a LLP. Residential proof is used to validate the current address of the Partner. The following documents are acceptable residential proof:

•       Bank Statement

•       Electricity Bill

•       Telephone Bill

•       Mobile Bill

Foreign National as Partner in LLP

For Foreign Nationals registering a Limited Liability Partnership, the following documents are required:

Passport: In the event of Foreign Nationals, a passport is necessary as identification. Additionally, the passport must be Notarized or Apostilled in the nation from whence it was issued. If the document is written in a foreign language, it must be translated into English by an official translator and notarized or apostilled. Additionally, if the Passport does not include the holder's date of birth, a supplementary document containing the Partner's date of birth must be submitted, legally certified or attested or notarized or apostilled.

In addition to the notarized or apostilled passport copy, the foreign citizen must provide a notarized or apostilled address evidence. The address proof presented must include the Partner's name as it appears in the Passport and the Partner's most recent address. Additionally, the document must be no more than one year old for foreign nationals. For Foreign Nationals, the following documents are admissible as evidence of address.

•       Driving License

•       Residence Card

•       Bank Statement

•       Government issued form of identity containing address.

It is necessary to have the document translated by an official translator and notarized or apostilled if the document is written in a foreign language.

LLP registration process requires the submission of a residential proof in addition to an address proof in order to verify the present residence of the Partner. In addition to containing the name of the Partner as it appears on the passport, the residential proof must be no more than one year old and contain the same information as the address evidence. The following documents are acceptable forms of proof of residence:

•       Bank Statement

•       Electricity Bill

•       Telephone Bill

•       Mobile Bill

Registered Office Proof

Additionally, proof of the registered office address of the limited liability partnership (LLP) must be submitted in addition to the Partners' identities, addresses, and residential addresses. In order to provide proof of registered office, the following documents must be submitted either during the business registration process or within 30 days of the company's incorporation date.

1. It is necessary for the company to obtain permission from the Landlord (whose name appears on the electric or gas or water bill or on the property tax receipt or on the sale deed) in order to utilise the premises as its registered office. This is commonly referred to as a letter of authorization from the landlord; AND

2. Proof of any utility service, such as a telephone, gas, electricity, or other similar service, exhibiting the address of the property in the name of the owner, or a document that is no more than two months old that demonstrates the service.

3. Sheet of Subscribers Once the Ministry of Corporate Affairs has approved the proposed name, the incorporation documents must be produced and filed with the Registrar of Companies (ROC). The LLP subscriber sheet, together with the evidence of registered office address and the landlord's letter of authorization, is one of the most important documents to present when forming a limited liability partnership. If you are a limited liability partnership (LLP), the subscriber sheet must be witnessed by an experienced legal professional, such as an attorney, chartered accountant, company secretary, or cost accountant.

4.  

LLP Annual Filing

LLPs in India are required to file their Annual Return within 60 days of the end of the financial year's closing, as well as their Statement of Accounts and Solvency within 30 days of the end of the six-month period after the close of the financial year. In contrast to corporations, limited liability partnerships (LLPs) are required to have a fiscal year that runs from April 1st to March 31st. So the annual return for limited liability partnerships is due on May 30th, and the Statement of Accounts and Solvency is due on October 30th, each fiscal year. In addition to the MCA annual return, limited liability partnerships (LLPs) are required to file an income tax return every year. Delta Tax & Business Solutions offers a comprehensive LLP compliance service, which covers LLP annual filing as well as LLP income tax return filing, at a very reasonable price. This service is available to both individuals and businesses.

LLP Form 11

Details on the number of partners, the total number of partners, the total contribution received by all partners, the details of body corporate as partners, and a summary of the partners are all contained in form 11. All limited liability partnerships (LLPs) are required to file this form with the appropriate fee within 60 days of the end of the financial year. As a result, the deadline for submitting LLP Form 11 is the 30th of May of each year. An annual compliance checkup by Delta Tax & Business Solutions LLP comprises the preparation and filing of LLP Form 11.

LLP Form 8

Form 8 must be filed with the IRS within 30 days of the end of the first six months of the financial year, together with the appropriate fee. This document must be digitally signed by two selected partners and certified by a chartered accountant, a company secretary, or a cost accountant in order to be valid. Form 8 includes a Statement of Solvency, a Statement of Accounts, and a Statement of Income and Expenditure, among other things. Delta Tax & Business Solutions LLP's Annual Compliance comprises the preparation and filing of LLP Form 8, as well as other required documents.

LLP Tax Audit

LLPs are legally distinct legal entities. Because of this, it is the Designated Partners' responsibility to keep proper books of accounts and to file an annual return with the MCA at the end of each financial year. The accounts of limited liability partnerships (LLPs) are not required to be audited unless the company's annual turnover exceeds Rs.40 lakhs or the contribution exceeds Rs.25 lakhs.

Income Tax Return Filing

LLPs must file an income tax return using Form ITR 5, which is available online. Form ITR 5 can be filed electronically through the income tax website, with the digital signature of the selected partner serving as the filing signature. Tax filing for limited liability partnerships (LLPs) in India is due on July 31st if no tax audit is required. An audit of the accounts by a practising Chartered Accountant is required for LLPs with a turnover in excess of Rs. 40 lakh or a contribution in excess of Rs. 25 lakh. The deadline for filing tax returns for LLPs that are needed to be audited is September 30th.

All the best for your LLP Venture.