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Know How to do LLP Firm Registration in Delhi - PKG Consultancy

Know How to do LLP Firm Registration
in Delhi
Limited Liability Partnerships (LLPs) have paved the way
for many foreign companies to enter India.
LLP is essentially a hybrid corporate structure that
the benefits of both corporate (private or public) and
partnership. It embodies limited liability to partners as a
company and tax incentives for affiliates.
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
100% of FDI is allowed by automatic route (without government
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
sources outside India, including masala bonds.
•The 2017 amendment relaxed the rules, allowing foreigninvested LLPs to access foreign loans at a lower cost.
•No government approval
company to an LLP.
•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.
•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 incomerelated incentives.