Limited Liability Partnership in Maharashtra is a type of business where 2 or more people join hands to form a Partnership for carrying out a business. Limited Liability Partnership in Maharashtra is commonly called LLP and it also has the advantage of a separate legal entity which is not there in a normal partnership. In this type of business, the Partners' liability is Limited, meaning that Partners will be liable to pay only up to the money they have contributed to the capital of the LLP. No one Partner in the LLP can be held responsible for the wrong-doing or negligence of the other Partner as each Partner is only accountable for his own act.
Limited Liability Partnership in Maharashtra thereby has the features of both Partnership Firm as well as a Company thereby making it one of the attractive entity option for many businesses.
A Limited Liability Partnership in Maharashtra has 2 types of Partners – Designated Partners and Partners.
Advantages of LLP
Convenient to Form : LLP can easily be started and registered online in Maharashtra and a business can be managed like typical entrepreneurs. LLP agreements are tailored in accordance with the requirements of the partners concerned. There are less formalities in the field of legal compilation, annual meeting and resolution as compared to any other Private Limited Company.
No Minimum Capital Requirement : At the very minimum, a New LLP registration in Maharashtra can be accomplished. Capital can be a tangible, movable asset such as Land, machinery or an intangible one.
No Requirement of Audit : In case the contributions of the LLP go beyond Rs. 25 Lakhs, or If the Annual Turnover of the LLP is more than Rs. 40 Lakhs
Less Compliance : LLP are under less compliance obligation as they have to submit only two statements i.e. the Annual Return & Statement of Accounts and Solvency. Whereas in the case of a private company, at least 8 to 10 regulatory formalities and compliances are required to be duly completed
Disadvantages of LLP
High Income Tax Rate : The company income tax rate for a business with a turnover of up to Rs.250 crores is 25%. Nevertheless, a Limited Liability Partnership (LLP) is charged a tax rate of 30% irrespective of the turnover.
Transfer of Ownership : The transferring of the ownership right to another person is a complex and time-consuming process. The Partners who desire to transfer their rights will have to obtain the written approval of all the partners. If, however, one of the partners objects, the transfer operation cannot continue.
Steps for Formation
Step 1 : The first step would be to acquire the DSC for the Designated Partners of the LLP.
Step 2 : The availability for the name of the LLP must be checked, by making an application for the same in RUN-LLP.
Step 3 : The forms FiLLiP along with DIN application are to be duly filled and submitted while making an online application.
Step 4 : An application must be made for PAN (Permanent Account Number) and TAN (Tax Deduction Account Number) mandatorily to get the LLP registered.
Step 5 : The registrar verifies the documents and if it is satisfactory, the certificate of incorporation (COI) is awarded along with the PAN and TAN.
Step 6 : Draft LLP Agreement and submit LLP agreement in Form 3 within 30 days of incorporation of LLP.
Required Documents
For Designated Partners
PAN is mandatory - Indian National / Passport - Foreign National
Proof of Identity - Voter Id/Passport/Driving License - Any 1
Proof of Address (Electricity Bill/Bank Statement/Telephone Bill/Mobile Bill not older than 2 months) - Any 1
All files related to an Indian National - should be self-attested.
All documents of a Foreign National - To be self-attested & apostilled
For Registered Office
Proof of Ownership - Sale Deed / Rent Agreement signed copy
Copy of Utility Bill - Electricity Bill / Telephone Bill / Gas Bill - Any 1
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There is no minimum capital requirement to register LLP in Maharashtra. An LLP in Maharashtra can be formed with the least possible capital.
1. Utility Bill of Registered Office;
2. Proof of Owneship of Registered Office;
3. Copy of PAN & Aadhar as Identity proof of Partners;
4. Copy of Utility Bill/Bank Statement as Address proof of Partners.
Filing of LLP Form 8 (Statement of Accounts & Solvency) and LLP Form 11 (Annual Return) is mandaory for all the LLPs in Maharashtra.
If a limited liability partnership (LLP in Maharashtra) has just two members and both are designated partners, both can become authorised signatories.
Ministry of Corporate Affairs (MCA) is the registering authority Pan India.
Time taken for registration is considered on the basis of working hours of government officials which is 12 working hours on a single day. Therefore, the approx. time taken for formation of entity would be 4 days.
