LLP registration in Lucknow is the process of creating a new Limited Liability Partnership (LLP) business entity in accordance with the Limited Liability Partnership Act of 2008. LLP registration is a popular choice among small and medium-sized businesses in Lucknow, as it offers several benefits such as limited liability and flexibility in management.
Introduction
A Limited Liability Partnership (LLP) is a type of partnership in which some or all partners have limited liability for the company’s debts. It is a separate legal entity and is considered to be a hybrid between a partnership firm and a private limited company. It allows the partners to enjoy the benefits of both worlds – the flexibility of a partnership firm and the limited liability of a company.
Registration Process
The process of registering an LLP in Lucknow is quite straightforward and can be done online through the Ministry of Corporate Affairs (MCA) portal. The following are the steps involved in registering an LLP in Lucknow:
- Obtain a Digital Signature Certificate (DSC) and Director Identification Number (DIN) for all the partners
- Reserve the name of the LLP through the MCA portal
- File the LLP agreement with the Registrar of Companies (ROC)
- Obtain the certificate of incorporation from the ROC
Legal Provision
The Limited Liability Partnership Act of 2008 is the legal provision governing the registration and operation of LLPs in Lucknow. The Act lays down the rules and regulations for the incorporation, management, and dissolution of LLPs in Lucknow.
Types LLPs in Lucknow can be of two types:
- Professional LLP: This type of LLP is suitable for professionals such as doctors, engineers, architects, and chartered accountants.
- Non-Professional LLP: This type of LLP is suitable for businesses that are not run by professionals.
Advantages
- Limited liability: The liability of the partners is limited to their capital contributions, which means that they are not personally liable for the LLP’s debts.
- Flexibility in management: LLPs have more flexibility in management as compared to private limited companies, as the partners can make decisions collectively.
- Easy to set up: The process of setting up an LLP is relatively simple and can be done online.
- Tax benefits: LLPs are eligible for tax benefits such as lower tax rates and deductions for expenses.
Disadvantages
- Less legal protection: As compared to private limited companies, LLPs have less legal protection for partners.
- Less credibility: LLPs may have less credibility as compared to private limited companies, as they are not as well-known.
- Less scope for raising capital: LLPs have less scope for raising capital as compared to private limited companies, as they cannot issue shares to the public.
Differences
- Liability: In a private limited company, the liability of the shareholders is limited to their shareholdings. In an LLP, the liability of the partners is limited to their capital contributions.
- Management: In a private limited company, the management is vested in the board of directors. In an LLP, the management is vested in the partners.
- Credibility: Private limited companies are considered to be more credible as compared to LLPs, as they are well-known and have more legal protection.
List of Documents Required
- PAN card of the proposed partners
- Address proof of the proposed partners
- ID proof of the proposed partners
- NOC from the owner of the registered office
- Utility bill of the registered office
- LLP agreement
- Declaration of compliance
- NOC from the ROC
In conclusion, LLP registration in Lucknow is a good option for small and medium-sized businesses that wants to run business in form of partnership firm.