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Simplify Your Journey as a Partnership Firm or LLP with MyBizCFO
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We ensure hassle-free incorporation and registration for partnership firms and LLPs
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Get expert services at optimal costs: transparency and no hidden fees
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Set up your partnership or LLP business in the shortest timespan
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We cover you for everything, from registration to legal compliance
Why Choose MyBizCFO for Partnership Firm or LLP Registration?
Many businesses in India run as partnership firms and limited liability partnerships. With these entities, founders have structured roles and responsibilities. Moreover, the compliance requirements are not as complicated as those for companies. However, business owners may often be overwhelmed by the complexities of incorporation and registration. MyBizCFO can help you complete the entire process seamlessly. As your partner, we offer various benefits such as:
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On-call support with dedicated account managers
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A quick and easy online registration process
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A team of seasoned experts such as lawyers, CA, and CS
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Rapid turnaround and cost-effective services
Benefits of Registering a Partnership Firm
Shared Responsibilities
The term "partnership" itself refers to a group of people joining forces for a shared business goal. Working and running the company jointly is a shared duty amongst the partners. By specifying it in a Partnership Deed, one or more partners might be given responsibility for a specific field or task.
Operational Flexibility
A partnership firm is run in accordance with the partnership deed that each member mutually executes. With their common agreement, the partners can select how to run the company. Additionally, even after partnership deed registration is finished, the partnership deed may still be modified in accordance with the requirements. As long as the firm is protected by the signed agreement, the partners are free to operate the business as they see fit.
Financial Gains Differentiation
The company's partners receive a variety of returns for their respective efforts and capital. In addition to the interest on capital and profit-sharing that the partners may decide upon, the working partner is compensated. Additionally, the partner who receives the partnership firm's profit portion is exempt.
Predetermined Period or Goal
The deed lists the predetermined business goals and actions at the time of partnership firm registration, which is the primary goal of starting a business. A partnership may be established to accomplish a particular project or goal, or it may be formed for a predetermined amount of time. The partnership will be immediately terminated upon completion of the same.
Deciding the Name of Your Partnership Firm
Distinct Name:
A distinctive name enhances brand value and makes the firm easier to recognise.
Brief and Easy:
The name should be easy to spell and remember, and it shouldn't be very long.
Business Objective:
A portion of the name should allude to the company's operations.
Documents Required to Register a Partnership Firm
PAN Card: A self-attested copy of PAN cards of all partners in the firm
Address Proof: A Self- attested copy of the Aadhaar Card/Voter ID/ Passport/ Driving License of all partners in the firm
Business Address Proof: Utility Bill (Electricity Bill) of the place of business operations
Rent Agreement: Rent Agreement and NOC from the owner of the place of business premises, if rented
Our Process: Steps to Register your Partnership Firm with MyBizCFO
Step 1: Answer Our Questions
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Pick the relevant package
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Answer a few simple questions
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Provide documents according to our checklist
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Pay through a secured payment gateway
Step 2: Connect with Our Experts
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We will assign a dedicated relationship manager
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Our experts draft a partnership deed
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Get a notary of the deed and pay stamp duty
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We apply for PAN and TAN
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Get answers to queries within 24 business hours
Step 3: Get on Track with Your Partnership Firm Registration
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Complete the process in 12 working days
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We ensure that your business is compliant.
Get on a free assessment call with an expert.
Partnership Firm Registration Timeline
Days 1
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Discussion and gathering of basic information
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Providing essential documents for registration
Day 2 - 4
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Partnership Deed drafting
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Review and confirmation from all partners
Day 5 - 7
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Stamp Duty payment
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Notarisation of the Partnership Deed
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Application for PAN and TAN allotment
Day 8 and beyond
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Partnership Deed registration
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Certificate of Registration from Registrar of Firms
Benefits of Registering a Limited Liability Partnership
Independent Legal Status
The registration of a limited liability partnership establishes a distinct legal existence from its participants. The LLP Act of 2008, permits the company to enter into agreements with other organisations, file lawsuits, own property, and borrow money under the LLP's name. It gives the company the freedom to run autonomously and forever, regardless of partner changes or deaths.
Limited Liabilities of Partners
Having a distinct legal personality is the main benefit of registering as a Limited Liability Partnership rather than a Partnership Firm. As a result, LLP offers its partners a restricted liability benefit. According to the LLP agreement, the partners' liability is limited to the capital contribution in the event of a business loss or insolvency. Furthermore, no partner is liable for the carelessness or wrongdoing of the other partners.
Operational Flexibility
An LLP's functioning framework, including the partners' rights and responsibilities, are clarified by the LLP Agreement, a deed between the partners. LLPs usually have a "Designated Member" in charge of day-to-day management. Both individuals and already-existing businesses may be members. Additionally, this structure makes it possible to specify the partners' duties and obligations precisely. It might also aid in safeguarding the partner's interests in the event that they are lost due to an illegal act committed by another partner.
Reduced Need for Compliance
An LLP is subject to less compliance standards than a private limited company. Until a specific amount of turnover or contribution is reached, there is no mandatory audit need. LLPs are not subject to the same regulations as corporations regarding board meetings, statutory meetings, etc. It is a cost-effective formation type to maintain because professional services for compliance are usually offered at lower costs than those for businesses.
Deciding the Name of Your LLP
Uniqueness:
A unique name facilitates name approval and helps to establish a distinctive identity.
Constitution:
The suffix LLP, or Limited Liability Partnership, must appear at the end of the registered LLP's name.
Business Objective:
The name of your LLP must give a clear explanation of your business activity.
Documents Required to Register an LLP
PAN Card: PAN Card of all partners in the firm (passport in case of foreign nationals)
Business Address Proof: Latest Electricity Bill/ Telephone Bill of the registered office address
Address Proof: Aadhar Card/ Voter ID/ Passport/ Driving License of all partners in the firm
Photograph: Latest photograph of all partners in the firm (passport size)
Owner NOC: No Objection Certificate by the owner of the registered office
Rent Agreement: Rent Agreement of the registered office if rented
Documents of an NRI or Foreign National partner must be notarized or apostilled.
Our Process: Steps to Register your LLP with MyBizCFO
Step 1: Answer Our Questions
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Pick the relevant package
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Answer a few simple questions
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Provide documents according to our checklist
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Pay through a secured payment gateway
Step 2: Connect with Our Experts
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We will assign a dedicated relationship manager
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Our experts draft your documents and file applications for DSC, DIN, PAN, TAN
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We also prepare the LLP agreement and other required documents
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Get answers to queries within 24 business hours
Step 3: Get on Track with Your PLC Registration
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Complete the process in 15-18 working days
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We ensure that your business is compliant.
Get on a free assessment call with an expert.
LLP Registration Timeline
Day 1 - 2
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Digital Signature Certificate application
Day 3 - 5
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LLP name availability check
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Name Reservation under “LLP-RUN” application
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LLP Name reservation
Day 6 - 10
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Drafting the incorporation document of the LLP
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Application filing for LLP registration
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Application for DIN allotment
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Certificate of LLP Incorporation
Day 11 - 14
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PAN and TAN Application
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Drafting of LLP Agreement
Day 15 - 18
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Stamp Duty payment
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LLP Agreement filing
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Government processing time
Choose the Right Business Structure by Comparing Entity Types
Title | Comparison Criteria | Private Limited Company | Public Limited Company | One Person Company (OPC) |
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1 | Applicable Law | Companies Act, 2013 | Companies Act, 2013 | Companies Act, 2013 |
2 | Registration | Mandatory; must be registered with MCA under the Companies Act | Mandatory; must be registered with MCA under the Companies Act | Mandatory; same as Private Limited Company |
3 | Number of Owners | Minimum: 2; Maximum: 200. Includes only shareholders and excludes present or former employees | Minimum: 7; No maximum limit | Only 1 shareholder allowed; sole ownership structure |
4 | Separate Legal Entity | Yes; PLC is a separate legal entity, capable of owning assets or entering into contracts independently | Yes; Public Limited Company operates as a separate legal entity | Yes; operates as a separate legal entity similar to a Private Limited Company |
5 | Liability Protection | Limited to the unpaid amount of shares held. May vary if specified as unlimited liability in the Memorandum of Association (MOA) | Limited to the unpaid amount on shares | Limited to the unpaid amount on shares held by the sole member |
6 | Statutory Audit | Mandatory; required to appoint a statutory auditor within 30 days of company incorporation | Mandatory; same as Private Limited Company | Mandatory; same audit requirements as Private Limited Company |
7 | Ownership Transferability | Restricted; transfer of shares requires the consent of other shareholders, making it less flexible for external investors | Freely transferable; shares can be bought or sold easily, allowing for capital raising through public trading | Restricted; 100% ownership lies with a single owner, and transfer requires 100% share transfer |
8 | Perpetual Existence | Yes; continues despite changes in ownership or management | Yes; existence remains unaffected by changes in shareholders or management | Yes; perpetual succession, but only one owner allowed at any time |
9 | Foreign Ownership | Allowed under RBI and FEMA guidelines, typically through the automatic route | Allowed; foreign nationals can invest as per RBI and FEMA guidelines, generally under the automatic route | Not allowed; only Indian citizens and residents can establish an OPC |
10 | Taxability | - 25% if turnover < ₹400 crores - 25% for manufacturing companies (post-March 1, 2016) under Section 115BA - 22% for companies not claiming exemptions under Section 115BAA - 15% for new manufacturing (post-Oct 1, 2019) under Section 115BAB - 30% for others | Same as Private Limited Company | Same as Private Limited Company |
11 | Compliance Requirement | High; includes annual filing of financial statements, annual returns, holding board meetings, and maintaining statutory registers | Very high; includes all private company compliances plus requirements like AGMs, quarterly financial results, and SEBI compliance (if listed) | Moderate; includes annual filing of financial statements, annual returns, and limited board meetings. No AGM required |
Frequently asked questions
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Is it mandatory to register a partnership deed?
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Both registered and unregistered partnerships are recognised by law, according to the Partnership Act. Although it is not required, partnership registration is advantageous because of the consequences of non-registration. Unregistered partnerships are typically preferred by startups until they stabilise. After it is formed, the unregistered partnership may be registered at any moment.
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What are the effects of a partnership not being registered?
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The firm is unable to sue any partners or third parties because it is not registered. Additionally, the partnership business cannot be sued by a partner for his claim. To enforce their claims or obligations, third parties may, nevertheless, file a lawsuit against the company. Third-party rights are unaffected by non-registration. To eliminate the aforementioned effects, the partnership may also be registered at any point after it is formed.
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How much capital does it need to start a partnership firm?
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No minimum sum is needed to form a partnership firm. Any size capital investment from the partners can be used to launch it. The Partners may provide contributions in any quantity and in any form, whether it be intangible (goodwill, intellectual property) or tangible (cash, premise). Any ratio of equal or unequal capital might be introduced by the Partners.
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What is the minimum number of people needed to register a partnership firm? Does being a partner come with any requirements?
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By following the steps outlined, a partnership firm can be formed with just two participants. Additionally, an Indian resident and citizen must be the partner who is introduced and appointed to the firm. Only with previous government clearance can non-resident Indians (NRIs) and persons of Indian origin invest in a partnership. The person must not be a minor and be competent to enter into a contract. Only for financial gain may a partnership firm introduce a minor.
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What benefits may a registered partnership firm offer?
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In a disagreement with a third party, only a registered partnership firm is entitled to a setoff, which is the mutual adjustment of the disputant parties' debts to one another. As a result, partnership firms should register it as soon as possible. Additionally, only a registered partnership firm may sue the firm or other partners in any court to enforce any rights granted by the Partnership Act or resulting from a contract. After being established, an unregistered partnership firm may register at any moment.
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How much stamp duty is due on the partnership deed?
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The partners must pay the necessary stamp duty based on the firm's capital in order to verify the legitimacy of the partnership deed. The amount of capital contributions made by partners determines how much stamp duty is due. According to the State Stamp Act, the duty rate varies from state to state.
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Is it required that the Partnership Deed be notarised?
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Yes, whether a partnership firm is registered or not, a notary on the partnership deed is required in every situation.
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Which government agency has received the application for partnership firm registration?
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The Registrar of Firms (RoF), whose jurisdiction includes the partnership firm's place of business, receives the application for partnership firm registration in India. The Partnership Deed is submitted with the Registration application in the required format. The relevant RoF issues the Certificate of Registration at the conclusion of the registration process. Each RoF may have a different registration procedure and timing.
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In India, how much time does it take to register a partnership firm?
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In India, it can take twelve to fourteen working days to register a partnership firm. However, in accordance with the laws of the relevant state, a registration certificate may be issued. The time required for a partnership firm to be registered depends on the government's processing time, which differs for each state.
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When is the partnership business able to submit a PAN and TAN application?
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Once a partnership firm agreement has been executed or the partnership deed has been registered with the appropriate RoF, the PAN and TAN can be applied for. Only after being sent by the Income Tax Department will the registered business location receive a tangible copy of the PAN.
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What are the compliance requirements for a partnership firm?
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The partnership firm is responsible for keeping the financial statements and books of accounts up to date. According to the Income Tax Act, the income tax return for the relevant fiscal year must be submitted before the deadline.
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Is it possible to convert a partnership firm into a private limited company, or LLP?
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Depending on its needs, a partnership firm may be changed to a Private Limited Company (LLP). However, converting a partnership firm into a company or limited liability partnership (LLP) involves time-consuming, costly, and complicated procedures. Therefore, it makes sense for many business owners to think about and launch a company or limited liability partnership (LLP) rather than a partnership firm.
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What prerequisites must be met in order to register an LLP in India?
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At least two people must be chosen as Designated Partners, with one of them having to be a resident of India. Additionally, in order to register a company address in India as a registered office for your LLP, it is a prerequisite.
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Is there any minimum capital requirement for LLP registration in India?
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No. In India, there is no set minimum amount required to establish an LLP. Any amount of capital that the firm requires can be used to launch it. In order to form an LLP, each partner must contribute financially, albeit there is no minimum need. The LLP Agreement details the capital contribution amount, and the overall contribution amount determines the stamp duty amount.
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What is the Director Identification Number (DIN)? Is DPIN is required for LLP Registration?
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When it comes to LLP establishment, DIN takes the place of the idea of DPIN (Designated Partner Identification Number). The MCA assigns each individual whose application is submitted a unique number known as the Director Identification Number. This enables anyone to be a designated partner in an LLP or a director in any company. With the incorporation application in FiLLiP, DIN allocation is applied up to a maximum of two DIN.
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What qualifications are needed to form an LLP in India as a Partner or Designated Partner?
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Being a partner in an LLP has no restrictions on citizenship or residency status. As a result, foreign nationals, including foreign companies and LLPs, are permitted to be incorporated in India under the LLP Act, 2008. Having at least one Designated Partner who resides in India is a prerequisite. However, the individual must be at least eighteen years old. This is to guarantee that the individual in LLP is not a minor and is capable of signing a contract. Additionally, DIN is required for the potential Designated Partner.
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Is a physical location necessary for online LLP registration?
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Yes, the partners are required to furnish a place of business in India along with the necessary paperwork. It may be a commercial plot or a residential plot. The MCA and other relevant entities typically utilise the address for communication purposes, and it is also posted on its portal.
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What is an LLP agreement? Does the MCA need to be notified?
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An LLP agreement is a document that all partners sign following an LLP's incorporation in India. Every clause pertaining to business, including the rights, roles, obligations, and duties of partners in an LLP, is prescribed in the agreement. Within 30 days following the issuance of a certificate of incorporation, the agreement must be filed. There will be an extra fee of ₹100 every day until the filing date if this is not done.
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What is DSC? To register a limited liability partnership, who is responsible for obtaining DSC?
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Digital Signature Certificates for LLP are issued by Certified Authorities and come in the form of tokens. All forms for online Limited Liability Partnership (LLP) incorporation in India must be submitted after the chosen partner's DSC has been attached.
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Can an LLP engage in many commercial businesses?
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It is possible for a Limited Liability Partnership that is registered in India to operate many businesses, provided that they are relevant. There must be a connection between the activity or the same field. It is not possible to conduct unrelated tasks like interior design and legal consulting under the same LLP. The business operations are outlined in the contract and require RoC approval.
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Is it possible for an LLP to register for non-profit purposes?
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No, "carrying on a lawful business with a view to profit" is one of the prerequisites for forming an LLP for legal purposes. Therefore, it is not possible to incorporate an LLP to engage in "Not-For-Profit" operations.
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When will I be able to obtain the LLP's PAN and TAN?
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Following the issuance of the Limited Liability Partnership's Certificate of Incorporation, the PAN and TAN utilised for the LLP formation can be applied. Following its transmission by the Income Tax Department, the physical copy of the PAN will be received at the Registered Office.
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What are the compliance requirements once LLP is registered?
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For business purposes, the partners must open a bank account in the LLP's name after completing the online LLP registration process. It is not necessary to complete any further requirements. To contribute as needed, the partners must, however, deposit the agreed-upon sum. When registering an LLP, the yearly compliance filing also needs to be completed annually.
Do you have more questions? Get in Touch
What Clients Say About Us
Sharvari Thakur
Local Guide • 4 days ago
MyBizCFO did a great job, helping me establish my partnership from scratch. They also guide me with the compliance guidelines to ensure that my firm does not face legal issues.
S
Google Reviews
5.0
Atish Kapoor
Local Guide • 2 hour ago
I knew nothing about the LLP establishment when I started my business. These experts helped me throughout the journey, making it smooth and easy for me and may partners. We cannot thank them enough!
Google Reviews
5.0
A
Karishma sharma
2 days ago
MyBizCFO offers quick and effective assistance. We started as a partnership firm and decided to form an LLP down the line. The experts here helped us through the transition and ensured that we were ahead of the compliance guidelines.
Google Reviews
5.0
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