Limited Liability Partnership (LLP) Registration in India For NRIs

India is now one of the fastest-growing economies, and the business landscape here is becoming one of the most attractive investment options for foreign nationals and NRIs. Among the various investment options for entering the Indian investment market, NRIs and foreign nationals are seeking LLP incorporation with FDI for apparent reasons.

What is a Limited Liability Partnership (LLP)

LLP is one kind of hybrid structure that came into existence under the Limited Liability Partnership Act 2008. An LLP is a partnership firm that can be established by a minimum of two partners who sign an LLP agreement. However, LLP offers the benefits of both a private company and the benefits of a partnership firm. Within a short time, this type of business structure has become prevalent due to its low registration cost in India and fewer compliance requirements compared to a private company.

Features of LLP

• Just like other companies, even the LLP has a separate legal entity.
• A minimum of two people are required to establish a limited liability partnership (LLP) firm as partners.
• Under the LLP Act 2008, there is no upper limit on the maximum number of partners in an LLP firm.
• Out of the two designated owners in an LLP, at least one of them must be a resident of India.
• The cost to form an LLP is generally low.
• This type of business structure has fewer regulations and compliances.
• There is no such requirement for a minimum capital contribution.

More features come with an LLP, which is apparent why foreign nationals and NRIs are attracted to it. However, to reap each of the benefits of an LLP agreement, you need an expert who has expertise in knowing every provision under the LLP Act to get you the most, and that's where the CAs of Savetaxs come to help.

Our experts bring more than 30 years of experience to the table and have been helping NRIs register an LLP in India for more than 15 years now. Your case is in safe hands with Savetaxs because we prioritize our clients' needs above all else.

Advantages of LLP

A limited liability partnership has several advantages like:

An LLP is a Separate Legal Entity

Just like any other corporation, an LLP has a separate legal entity and is distinct from its partners. The limited liability partnership (LLP) can sue and be sued in its name. Under the LLP Act, there is a provision that the contracts will be signed in the name of the LLP. This helps different stakeholders gain trust and gives the suppliers and customers some confidence in the business. 

Limited Liability of the Partners

The liability designated to a partner is proportional to the contributions made by them. This means that they will only pay the amount of contributions, and if any loss in the business is incurred, they are not personally liable for it. Now, since the partner has limited personal liability, they can operate as credible businesspeople.

Less Compliance and Low Cost

Unlike any other business structure, the cost of forming an LLP is quite low. Additionally, the compliances that the LLP needs to adhere to are also minimal, which is apparent because a limited liability partnership (LLP) is required to file only two statements annually: a statement of accounts and solvency and annual returns.

No Minimum Capital is Required.

One of the most attractive features of an LLP is that it can be formed without a minimum amount of capital required. There is no regulation requiring a minimum capital to be paid before incorporation; however, partners can form an LLP with whatever amount they wish to contribute.

This is a significant advantage that allows NRIs and foreign nationals to start a business in India without any financial constraints.

Flexible Management

This type of business structure allows the partner to run the business according to their ideology, providing complete flexibility with no interference from a third party.

Tax Exemption

According to the Limited Liability Partnership Act, LLPs are considered partnership firms; therefore, they are exempt from corporate income tax. However, the partners must pay their taxes.

Disadvantages of an LLP

Every coin has two sides, and hence, LLP also has a few disadvantages; however, with the proper guidance of an expert, one can easily overcome them:

Non-compliance Penalty

Although the compliances associated with an LLP are fewer, failing to meet them can result in the LLP being subject to hefty penalties. The altern needs to ensure that all compliance is completed within the due deadline. Even if your LLP doesn't have any activity for the entire year, you still need to file the returns with the MCA, Ministry of Corporate Affairs.

At Savetaxs, we ensure that no penalties are incurred with your LLP, as our experts are well-versed in all business provisions under the LLP Act and are aware of the deadlines for every compliance.

Dissolution and Winding Up of an LLP

The winding up of an LLP refers to the process of closing all the affairs of the LLP, including settling with creditors, selling LLP assets, and other related matters. However, dissolution is the final step, which involves terminating the legal existence of the firm by removing its name from the company register.

This process can be complex for NRIs and foreign nationals; hence, we assist you in navigating it within legal compliance. Our legal team of experts ensures that not a single extra penny is paid; the entire thing settles down in peace.

Raising Capital Seems Difficult

Unlike other companies, venture capitalists and angel investors cannot invest in LLP as shareholders, so it takes a different approach to raise the capital. Under the LLP Act provisions, shareholders must be partners in an LLP; thus, venture capitalists and angel investors generally do not prefer to invest in LLPs.

Requirements to Register an LLP for Foreign Nationals and NRIs

If an NRI or a foreign national wishes to opt for LLP registration, some minimum requirements must be met.

• Need a Minimum of two partners.
• A minimum of two directors is required for an LLP, out of which one must be an Indian resident.
• Partners need a registered office in India.
• NRIs or foreign nationals require identity proof, address verification, and other key documents.
• All documents must be attested before submission to initiate the registration process.
• Some additional requirements include a valid mobile number, passport-sized photographs, a digital signature, self-attested copies of address proof, and a passport.

Savetaxs helps you with attestations and verification of all documents, ensuring your LLP registration process proceeds smoothly. Apart from this, we help you through the process, ensuring everything happens seamlessly online. Yes, with Savetaxs LLP registration services, you can open an LLP in India without even visiting here.

Documents Required by NRIs and Foreign Nationals for LLP Registration

Keep all the below-mentioned documents handy to register an LLP for NRIs and foreign nationals successfully:

• A passport of each partner in the LLP, which must be notarized or apostilled
• Address proof, which includes the utility bills or a rental agreement of each partner
• A NOC, Non-objection certificate from the registered office premises owner
• Each Partner's PAN Card
• A signed LLP agreement

LLP Registration Process for NRIs and Foreign Nationals

Savetaxs can assist you with 100% online LLP registration assistance from anywhere in the world. Connect with us, and our experts with 15 years of experience in LLP registrations will connect with you promptly and assist you with all the necessary:

Step 1: Getting a Digital Signature Certificate (DSC)

One of the most crucial steps in the LLP registration process for NRIs and foreign nationals is to get a DSC. NRIs need to submit a digital signature certificate, which has to be notarized or apostilled, along with other documents, such as address proof, passport, resident card, DL, or more.

Savetaxs helps NRIs and foreign nationals with digital signature certificates remotely.

Step 2: Apply for DPIN

DPIN is a designated partner identification number that every designated partners of an LLP must have. It is used in conjunction with the DIN, or Director Identification Number, during the incorporation of a company.

Step 3: Name Approval Application

Once two DPINs are available, the partners can apply to the Ministry of Corporate Affairs to reserve the name for the LLPa. As per the LLP Act, 2008, you can propose at least six names in your applications. Just ensure that the names you suggest are not similar to those of existing companies. The form that you need to use for name approval is RUN-LLP.

Once you receive the acceptance of one name, you can file for the incorporation of an LLP within 60 days.

Savetaxs ensures that your brand name is legally available, preventing application rejection and ensuring compliance with MCA regulations.

Step 4: Incorporation of LLP (Form FiLLiP)

Once you have obtained the name approval from the MCA portal, you need to apply for the incorporation of an LLP application through Form FiLLiP (Form for incorporation of Limited Liability Partnership) with the Government of India. The application must contain all the required documents. Upon receiving the application, it'll be scrutinized under different parameters. Once everything is verified, the ministry will issue a certificate of incorporation.

Applying to the government of India requires attention to detail and a thorough understanding of LLP provisions. Our experts at Savetaxs will ensure that your application is filed, considering all LLP provisions and verifying that it is error-free and without delays. We provide end-to-end LLP registration services and assistance.

Step 5: LLP Agreement (Form 3)

Once you get the registration certification of the LLP for NRIs and foreign nationals, the next step is to file for an LLP agreement with the Ministry of Corporate Affairs within 30 days of receiving the incorporation certificate.

Savetaxs LLP registration assistance will help guide you through Form 3 and get the certificate with no delays or errors.

Which LLP Form To Use and When To Use

Savetaxs Compliance Registered Agent Service

With more than 15 years of experience in helping NRIs and foreign nationals with Limited Liability Partnership (LLP) services. We simplify and expedite the entire process for our clients. With this, our legal team ensures that everything is conducted in accordance with FEMA, FDI, and RBI guidelines, and all actions are taken in consideration of the Limited Liability Partnership Act, 2008.

We also help NRIs with business and entity setup, PAN card assistance, repatriation services, and more.

Savetaxs is every NRI's trusted partner!