A complete guide to LLP registration in Patna

What is an LLP?

An LLP, or Limited Liability Partnership, is a way for partners to run a business together while keeping their personal belongings safe. This means if the business faces losses or debts, your personal money and property aren’t at risk. Established under the LLP Act in 2008, an LLP is considered its own legal entity; it can own things, make agreements, and take legal action on its own. Many professionals like consultants, architects, and small business owners choose LLPs because it offers flexibility without all the complex rules that come with regular companies.

Why Choose an LLP?

• An LLP is easier to manage because there’s less paperwork and fewer rules than a private limited company.
• It protects your personal money and belongings if the business runs into trouble.
• You don’t have to pay extra taxes on profits like Dividend Distribution Tax, so you keep more of your earnings.
• It’s easy to manage, which makes it a good option for people like consultants, designers, or accountants.
• It works well for small groups or family businesses that want a legal setup without all the complicated company rules.

Benefits of Forming an LLP in Patna

• Operating costs like rent, salaries, and utilities are much affordable here compared to big metro cities.
• With Patna growing fast, there are lots of new business opportunities available.
• Bihar’s government support startups and MSMEs with subsidies and tax benefits which makes it easier to launch your venture.
• You can find skilled professionals nearby from top institutes like IIT-Patna and NIT.
• Local accountants and company secretaries are available to help with registration and compliance, usually at reasonable rates.

Eligibility Criteria for LLP Registration in Patna

• You need at least two partners to start an LLP
• Minimum two must be “designated partners” who take care of legal and compliance stuff.
• One designated partner should be an Indian resident, which means they’ve lived in India for at least 182 days in the last year.
• All partners should be equal to or above 18 years of age.
• There’s no restriction on citizenship; both Indian and foreign citizens can be partners, as long as one designated partner is an Indian resident.
• You must set up a registered office address in India for your LLP, where all official communications will be sent.

Documents Required for LLP Registration

For All Partners:

• Proof of Identity
• Proof of Address
• Photographs

For Designated Partners:

• Digital Signature Certificate (DSC)
• Designated Partner Identification Number (DPIN)

For the Registered Office:

• Rent agreement and a No Objection Certificate (NOC)
• A recent utility bill (not older than 2 months)

Step-by-Step Process to Register an LLP in Patna

• Get Your Digital Signature Certificate (DSC): As LLP registration happens online, each partner and designated partner must get a digital signature to sign all the documents electronically.
• Apply for Designated Partner Identification Number (DPIN): Each designated partner must apply for a DPIN by submitting their ID and address proof, as this unique number is essential for registering your LLP.
• Choose and Reserve Your LLP Name: You need to choose a unique name for your LLP and reserve it on the MCA website. Just make sure it follows the naming guidelines so it gets approved without any issues.
• File the Incorporation Form (FiLLiP): After your name gets approved, go ahead and fill out the incorporation form online. You’ll enter details like your LLP’s official address and info about all the partners.
• Draft and Submit the LLP Agreement (Form 3): Once your LLP gets officially registered, the partners draft an LLP Agreement that clearly outlines each person’s role, responsibilities, and how you’ll divide the profits.You must submit it to MCA within 30 days of registration.
• Get the Certificate of Incorporation: Once the Registrar checks and approves your application, they issue the Certificate of Incorporation; officially recognising your LLP as a legal entity.
• Apply for PAN and TAN: Lastly, you’ll need to apply for your LLP’s PAN and TAN cards so your business can handle taxes and other financial tasks smoothly.

Government Fees & Cost Breakdown

Timeline for LLP Registration

• Getting your Digital Signature Certificate (DSC) usually takes around 1 to 3 days.
• Applying for the Designated Partner Identification Number (DPIN) typically takes 1 to 2 days.
• Reserving your LLP’s name can take anywhere from 2 to 7 days, depending on how fast the authorities approve it.
• After that, once you submit the Incorporation Form (FiLLiP), the registration process usually takes about 7 to 15 days to complete.
• Following registration, you have 30 days to file your LLP Agreement (Form 3).
• The Certificate of Incorporation is generally issued within 7 to 15 days after your incorporation form is processed.
• Finally, applying for your LLP’s PAN and TAN cards can take another 7 to 10 days.

All in all, from starting the process to finishing it, you can expect the whole LLP registration to take roughly 15 to 30 days, depending on how quickly each step moves along.

Post-Incorporation Compliances for LLP

• Annual Return Filing (Form 11): Every year, LLPs need to file an annual return with the Ministry of Corporate Affairs. This report shares details about the partners and any changes that happened during the year. You must file it within 60 days after the financial year ends.
• Statement of Account & Solvency (Form 8): LLPs also have to file their financial statement along with a solvency declaration every year. This includes information about your assets, liabilities, and whether the business made a profit or loss. It should be submitted within 30 days after 6 months from the end of the financial year.
• Maintain Books of Accounts: LLPs are required to keep proper financial records and books at their registered office for at least 8 years.
• Income Tax Filing: Regardless of how much your LLP earns, you need to file income tax returns every year.
• GST Compliance (if applicable): If your LLP’s turnover crosses the GST threshold or you choose to register voluntarily, you must follow GST filing and payment rules.
• Other Licenses and Permits: Depending on your business, you might need to get or renew additional licenses like the Shops & Establishment License or Professional Tax registration.

Common Mistakes to Avoid When Registering and Running an LLP

• Get your Digital Signature Certificate (DSC) promptly to avoid delays in registration.
• Choose and reserve an LLP name that follows the rules to prevent rejection or delays.
• Ensure you have at least two designated partners, with one residing in India, to complete the registration.
• File your LLP Agreement within 30 days to avoid fines.
• Maintain your financial records regularly to prevent problems later.
• Submit your annual returns and financial statements on time to avoid penalties.
• Register for taxes and file returns as required to stay compliant.
• Seek professional help for legal or tax paperwork if you’re unsure to avoid costly mistakes.

Conclusion

Starting an LLP in Patna is a smart and easy way to make your business official while keeping your personal things safe. It has fewer rules to follow, costs less, and there’s good support locally, making it great for small and medium businesses. Once you know how to register and keep up with the rules, running your LLP will be much easier. Avoiding common mistakes will save you time and money and help your business grow confidently in Patna. So, don’t wait; register your LLP now and give your business a strong start.

Suggested Read :

Change LLP Office Address

Advantages of LLP Company

Process to change LLP Agreement

Legal Dynamics of LLP Registration

Common Errors in LLP Annual Filing

FAQs