Question 1

What is the difference between an LLP and a Private Limited Company?

Accepted Answer

Key differences: (1) Compliance: LLP has lower compliance — no mandatory board meetings, simpler annual filings. (2) Taxation: LLP partners are taxed at their personal income tax rates; Pvt Ltd pays corporate tax. (3) Funding: Pvt Ltd can raise equity funding from investors easily; LLP cannot issue shares. (4) Management: LLP is governed by a flexible LLP Agreement; Pvt Ltd by MOA/AOA and Companies Act. For professional services, LLP is usually better; for investor-backed startups, Pvt Ltd is preferred.

Question 2

Can a salaried person be a partner in an LLP?

Accepted Answer

Yes, a salaried employee can be a partner in an LLP. However, they must check their employment contract, as some employers include non-compete or conflict-of-interest clauses. The LLP income would be reported separately in their ITR.

Question 3

Is audit mandatory for an LLP?

Accepted Answer

Audit is NOT mandatory for an LLP if its annual turnover is less than ₹40 lakh AND its capital contribution is less than ₹25 lakh. If either limit is exceeded, a tax audit under Section 44AB becomes mandatory.

Question 4

What is the annual filing requirement for an LLP?

Accepted Answer

Every LLP must file: (1) Form 11 — Annual Return within 60 days of the end of the financial year (by 30 May). (2) Form 8 — Statement of Accounts & Solvency within 30 days of 6 months of the financial year end (by 30 October). Both are filed on the MCA portal. Late filing attracts ₹100 per day penalty.

Question 5

Can an LLP be converted to a Private Limited Company later?

Accepted Answer

Yes. An LLP can be converted to a Private Limited Company under Section 366 of the Companies Act 2013 by filing Form URC-1 with the ROC. The conversion requires a special resolution by all partners, valuation of assets, and compliance with company law provisions. We assist with this conversion.

Question 6

What is an LLPIN?

Accepted Answer

LLPIN (LLP Identification Number) is a unique 7-digit alphanumeric identifier assigned to every registered LLP in India by the MCA. It is the equivalent of a CIN (Corporate Identification Number) for companies. It appears on the Certificate of Incorporation.

Question 7

Do I need a separate office space to register an LLP?

Accepted Answer

No. The registered office can be your home address, a rented space, or a co-working space. You need to provide a utility bill (electricity/water) of the address plus an NOC from the property owner if it is not owned by you.

Question 8

What is the LLP Agreement and is it mandatory?

Accepted Answer

The LLP Agreement is a legal document that governs the relationship between partners — covering profit-sharing, rights, duties, exit provisions and decision-making rules. Under the LLP Act, filing the LLP Agreement (Form 3) with MCA within 30 days of incorporation is mandatory. We draft this as part of our service.

LLP Registration

What is LLP Registration?

Benefits of LLP Registration

Limited Liability

Lower Compliance Burden

No Minimum Capital

Flexible Partner Structure

Separate Legal Entity

Preferred by Professionals

Who Can Apply

Eligible

Not Eligible

Required Documents

LLP Registration Process

DSC & DPIN Application

Name Reservation

LLP Agreement Drafting

FiLLiP Filing with MCA

Certificate of Incorporation

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LLP Registration Pricing

Processing Timeline

Document Collection & DSC

DPIN & Name Reservation

LLP Agreement Drafted

FiLLiP Filing

Certificate of Incorporation

Frequently Asked Questions about LLP Registration

Related Services

Private Limited Company Registration

Annual Compliance for LLP

GST Registration

Trademark Registration

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