Know How To Do LLP Firm Registration In Delhi - PowerPoint PPT Presentation

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Know How To Do LLP Firm Registration In Delhi

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LLP is essentially a hybrid corporate structure that combines the benefits of both corporate (private or public) and partnership. It embodies limited liability to partners as a company and tax incentives for affiliates. – PowerPoint PPT presentation

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Title: Know How To Do LLP Firm Registration In Delhi


1
Know How to do LLP Firm Registration in Delhi
2
Limited Liability Partnerships (LLPs) have
paved the way for many foreign companies to
enter India. LLP is essentially a hybrid
corporate structure that combines
the benefits of both corporate (private
partnership. It embodies limited liability to
company and tax incentives for affiliates.
or public) and partners as a
  • With the exception of Bangladesh and
    Pakistan, persons residing outside India or
    companies established outside India may
    invest in LLPs in the form of share
    contributions or by obtaining profit
    sharing. This means that an investor
    can become a partner of an LLP by
    contributing to capital or acquiring a
    shareholding interest from an existing partner.
  • FDI in LLP Major Reforms
  • To promote foreign ownership of LLPs, the
    Reserve Bank of India (RBI) liberalized its
    policy of accepting LLP FDIs in March 2017 by
    amending the Currency Management Rule 2000.
  • 100 of FDI is allowed by automatic route
    (without government approval).
  • There were no performance requirements related to
    FDI.
  • Other changes are as follows
  • Use of foreign loans (external commercial loans
    or ECB)
  • Previously, Indian law prohibited LLPs from
    borrowing from
  • sources outside India, including masala bonds.
  • The 2017 amendment relaxed the rules,
    allowing foreign- invested LLPs to access
    foreign loans at a lower cost.
  • No government approval is required to
    convert a particular
  • company to an LLP.

3
  • Foreign-invested companies can become LLPs by
    automatic route without government approval.
    Previously, this required prior government
    approval.
  • LLPs dedicated to technology-based sectors
    or services can serve globally. This may
    require some of your partners to be abroad.
  • Steps to Registration of LLP
  • There are few steps for LLP firm
    registration in Delhi that have to follow
  • Obtain a digital signature certificate (DSC) for
    at least two proposed LLP-designated partners.
  • Obtain the Director Identification Number
    (DIN) or Designated Partner Identification
    Number (DPIN) from the proposed partner.
  • Use Reserve Unique Name LLP (RUN LLP) to request
    name availability. This is a web service used to
    reserve a name for a new company or rename an
    existing one.
  • Make sure you comply with the Ministry of
    Corporate Affairs (MCA) naming guidelines in
    this regard. All limited liability companies
    must have the word "limited liability company" or
    the acronym "LLP" as the last word in their name.
  • Once the proposed LLP name is approved, submit
    the FiLLiP form to include the LLP. FiLLiP
    is an integrated firm that provides multiple
    services such as DIN assignment, name
    booking, LLP on boarding, and more.

4
  • LLP contracts are one of the most
    important documents as they govern the
    rights and obligations of our partners. The
    various aspects covered by the contract may
    include the amount and form of the donation,
    the rights and obligations of the partner, and
    the proposed LLP business. The LLP contract must
    be submitted within 30 days of the
    establishment of the LLP.
  • Partner document
  • Taxpayer number card (PAN) or partner ID.
  • Proof of partner's address.
  • Partner residence certificate.
  • Photo Y
  • Passport (for foreigners or NRI).
  • LLP document
  • Proof of registered office. Y
  • Digitally signed certificate.
  • LLP Financial Responsibility
  • LLP is required to pay a 30 income tax on your
    income. If the total income exceeds 10 million
    rupees (the US 137,252), the LLP will have
    to pay an additional 12 on income tax.
    In addition, a 4 health education tax will be
    paid on income tax and additional charges.
  • Regarding minimum tax obligations, Indian tax
    authorities have introduced the concept of an
    alternative minimum tax (MAT) to companies that
    can either become zero-tax companies or pay
    marginal taxes using various deductions and
    income-related incentives.
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