Overview of LLP registration in Srinagar, Jammu and Kashmir
The Companies Amendment in 2013 which replaced the previous Companies Act 1956 on 29th August 2013, introduced some novel concepts intending to encourage entrepreneurship & facilitate “Ease of doing business” & instill the values of corporate governance among business entities in India.
Accordingly, one of the key changes introduced by the Companies Act 2013 included the concept of “LLP or Limited Liability Partnerships “in Srinagar, Jammu and Kashmir, although the concept of LLP was introduced in the year 2009 through the Limited Liability Partnership Act 2008 & relevant rules and the same was an instant success with start-ups and professional services.
An LLP is an alternative business structure that combines the benefits of the other business structure such as operational flexibility of a partnership firm, whereas a body corporate structure, perpetual succession & limited liability of a company, while eliminating the drawbacks of the existing business structure.
LLPs are known to offer a balanced framework to businesses to ensure minimal compliances & more focus on business growth activities, and could even have minimal compliances to follow to receive foreign direct investments from countries outside India.
LLP registration in Jammu and Kashmir
Popularly known as the “Heaven on Earth,” Jammu and Kashmir are known for their mind-blowing and breathtaking views, snow-covered mountains, exquisite and pertinent monuments, exhilarating wildlife, and local handicrafts. After the Reorganization Act was passed on 31 October 2019, J&K regained its statehood and emerged as a union territory of India. It is located in the northern part of our country, and Jammu and Kashmir share their national boundaries with Ladakh, Himachal Pradesh, and Punjab and its International boundary with Pakistan.
Jammu and Kashmir is a beautiful and picturesque place for tourists from all over the world. Places like Vaishno Devi Temple, Shalimar Gardens, Dal Lake, Amarnath Cave, and many other places are among the major tourist spots. Jammu is known for its temples, whereas Kashmir is known for the lakes, valleys, and gardens. Demographically, there is various language, but the most widely spoken language is Kashmiri. Muslim comprise the majority of the population of Jammu and Kashmir.
The climate in J&K is favorable for agro-based products, horticulture, and floriculture. Horticulture is famous and widely used in rural areas, providing employment to many local inhabitants. This is a crucial and viable step toward fostering the rural economy and enhancing the production of exotic handicraft and handlooms. Jammu and Kashmirare well-known for their small-scale industries such as carpet weaving, silks, shawls, basketry, copper and silverware, pottery, and walnut wood. The Gross State Domestic Product (GSDP) has increased by 8.51% between 2015-16 and 2020-21.
Capital- Srinagar (Summer) and Jammu (Winter)
Top Business Ideas in Jammu and Kashmir
Jammu and Kashmir is a land full of opportunities where one can set up multiple business models. It is stretched from horticulture to the tourism sector and handicrafts. So, one can find numerous business ideas, employing the inhabitants, especially the local women. Given below is the list of ideas by which to start a business: –
Horticulture Business
If you are willing to find a flourishing and thriving business, then horticulture is the best business idea. As per the latest survey report, horticulture is the largest business idea as it constitutes 23% to 25% of the GDP of the Jammu and Kashmir alone. You can create substantial employment opportunities for the young generation through this business. Jammu and Kashmirare rich in mineral soil layers and contain various rivers and water bodies. As a result, Jammu and Kashmir are among the best places for agro-business or farming-related businesses.
You can choose any of the items mentioned below to start your business:
Onion
Vegetable Seeds
Mushroom
Apple
Strawberry
Saffron
Almond
Potato
Handicraft Business
Handicraft is one of the key strengths of Kashmir. In the business of handicrafts, local customization comes in handy. Hence, this state has a huge potential in the field of handicrafts. There are various business products such as carpet weaving, silks, shawls, basketry, etc. Hence, it would be best to have skilled labor and raw materials to start the business. As per the latest records, more than 3.4 lakhs of craftsmen are engaged in this business. So, if you are considering starting your business, a handicraft business is a good choice. As a fact, local handicraft is available in abundance here.
Sericulture Business
From ancient times, Jammu and Kashmir have been well-known for their silk generation as they have various scopes to succeed in the business paradigm. As a fact, Kashmir has the best quality Bivoltine Mulberry silk in India. This silk is famous for its superior quality, soft texture, extended length, and adaptability to all climate changes. The business model possesses a good position in the growth and contribution of the state GDP.
Fishery Business
States like Bihar, Jammu, and Kashmir are also blessed with the water assets stretched around their territory of about 0.4 lacs hectares. This constitutes various high-altitude lakes, rivers, springs, torrential streams, and reservoirs. As we know, stream water is good for fish growth and accumulation, making fisheries an amazing and ideal business model for Kashmir and Bihar.
Poultry Farming Business
Local poultry farming is a thriving and ever-growing business in Jammu and Kashmir. Jammu and Kashmirare well-known for producing the best quality poultry creatures. As a fact, the local people seem fairly interested in consuming more poultry products. You can increase the business reach to various states and cities by expanding the farms and exporting to other states. So, by this method, you can make your lucrative business model within the state.
Startup Ecosystem of Jammu and Kashmir
Scattered pearls cannot make the necklace on their own, so you need to weave them in a common thread that adds elegance, poise, and beauty to the necklace and the pearls. The Jammu and Kashmir state has a similar story. As per the latest changes, the Startup India team thinks the support could be extended to the entrepreneurs. There are over 100 technology-based startups registered with DPIIT and the startup India working across sectors. Various other volunteer organizations, such as Jammu Startup Community and ThinkPods. There is an NIT (National Institute of Technology) that has the required potential to ignite innovation among the bright and young students who study there.
Attempting to accomplish this startup ecosystem task, the government of Jammu and Kashmir government is focusing on various sectors such as food processing, agriculture, renewable energy, and handicrafts by promoting startups in these crucial sectors.
Startup JK is an online platform for all the startup ecosystem stakeholders in J&K, including investors, mentors, accelerators, service providers, and government bodies. This platform provides a medium to connect with other members of the ecosystem and access crucial resources like information about pertinent government schemes, Learning, and Development program, discuss issues, the latest news, and blogs, among others.
Salient Features of LLP registered in Srinagar, Jammu and Kashmir
- An LLP is an alternative business structure that has characteristics similar to that of a company & a partnership firm.
- Like a private company, an LLP needs at least two partners to be incorporated out of which there should be at least two designated partners. But, unlike a company, there is no upper limit on the maximum number of partners in an LLP whereas the maximum number of shareholders is up to 200.
- The liability of each partner is limited to the agreed contribution in an LLP as there is no requirement of minimum capital contribution.
- The respective rights & liabilities of the partners in an LLP are determined in pursuance of an LLP Agreement.
- The designated partners are responsible directly for compliance with all the provisions of the LLP Act 2008 and provisions specified in the LLP agreement
Pre-Requisites for LLP Registration in Srinagar, Jammu and Kashmir
i. Partners in LLP
For the purposes of LLP Registration, there must at least be a minimum of two partners, out of which at least two will be named as designated partners, and at least one designated partner should be a resident in India. Such partners/designated partners should possess a Director Identification Number (DIN) issued by the Ministry of Corporate Affairs. Only individuals can be designated as partners in an LLP.
Other than an individual, a body corporate can also become a partner (but not a designated partner) in the LLP by nominating a representative to act & attend meetings on its behalf.
ii. Name of the Proposed LLP
The name of a Limited Liability Partnership (LLP) shall compulsorily include the words ‘LLP’ which is the acronym for ‘Limited Liability Partnership. The proposed name is required to be approved by the Registrar of Companies on the MCA portal. The name of the LLP must be in line with the main objects of the LLP.
iii. Registered Office Address
Every proposed LLP must have a registered office address for statutory communication purposes before starting the process of incorporation. In case the property is rented, then a copy of an address proof with a No-Objection Letter for use of address as the Registered Office of LLP shall also be compulsorily attached with the documents.
iv. For a Legal Object
It is also necessary to ensure that the purposes of the proposed LLP must be for any legal business activities and not for any illegal object. For this, it is highly advisable to identify the main objects of the LLP in a particular line of business.
v. Digital Signature Certificate (DSC)
For the purpose of online registration of an LLP, it shall be necessary to file the documents online which shall be authenticated by using a Digital Signature Certificate of the Designated Partner from the Certifying Authority in India or MCA.
vi. Certificate of Compliance
Further, for the purposes of LLP registration, it shall be compulsory for every prospective LLP to obtain a certificate of compliance from a professional such as a Company Secretary/ Chartered Account/Cost Accountant who shall issue a certificate of compliance that all the requirements related to the incorporation of a Limited Liability Partnership (LLP) have been fulfilled and are genuine in nature.
Process of LLP Registration in Srinagar, Jammu and Kashmir
The process of LLP registration is a simple & completely online process that is administered by the Ministry of Corporate Affairs (MCA) following the completion of the process & filling the documents electronically and online verification, the Registrar issues a digitally-signed Certificate of Incorporation (COI) for the prospective LLP.
Process of LLP Registration Online in Srinagar, Jammu and Kashmir
i. Acquire a Digital Signature Certificate (DSC) in Srinagar, Jammu and Kashmir
In the first step, the LLP is required to make an application for a digital signature certificate which is mandatorily required for the purpose of e-filling of e-forms & ensuring a digital signature certificate to ensure the safety & authenticity of information submitted on the MCA portal.
ii. Make Application for DPIN (Designated Partner Identification Number) Allotment in Srinagar, Jammu and Kashmir
For the purpose of registration of an LLP, it shall be necessary to apply a Designated Partner Allotment Number, which is a unique identification number allotted to every proposed LLP for the facilitation of the registration process.
iii. New User Registration on the Portal in Srinagar, Jammu and Kashmir
Next, for new user registration, the user must create a login id & password after logging in on the MCA portal and clicking “New user” registration.
iv. Fill out the form for Name Reservation & Incorporation in Srinagar, Jammu and Kashmir
Further, the proposed LLP must have two-three proposed names ready for the purposes of incorporation after carefully choosing a name that is not already taken or is too closely related to the names of any existing entity.
For this, the applicant entity must file an e-form RUN (Reserve Unique Name) to check the availability of the name and afford protection so that the name once reserved could not be taken by any other applicant for a period of sixty days. However, for approval, the name should not be undesirable or doesn’t resemble any existing business or any Government organization/department in the view of the Central Government.
Once the RUN form is approved and it is protected, the applicant shall move to the next step which is filling & submitting the e-form name FiLLiP for LLP Registration online along with the required information & attachments.
v. Prepare and Submit LLP Deed in Srinagar, Jammu and Kashmir
An LLP Deed is a legally binding agreement entered between partners concerning their rights & obligations in pursuance of an LLP, which is similar to a partnership Deed in the case of a partnership firm. The particulars of LLP Deed include matters like the object of formation of the LLP, shares in profits & losses, interest on loans, dispute resolution in case of conflicts, etc.
Thus, after filling out forms online, the applicant LLP is required to draft an LLP Deed and submit it online. The format for LLP Deed has been prescribed under e-form no. Form 3, which must be filed within 30 days from the date of the incorporation.
vi. Apply for Your PAN, TAN, & Bank Account in Srinagar, Jammu and Kashmir
Once the steps mentioned above are completed, submit the FiLLiP form online and once registration approval is granted and a Certificate of Incorporation is provided, the applicant LLP shall be required to obtain PAN no., TAN number & a bank account for the LLP.
Time Involved in Registration in Srinagar, Jammu and Kashmir
The whole procedure from obtaining DSC to Filing Form 3 may take anywhere around 7-10 days depending upon the departmental approval and revert from the respective department.
Documents Required for LLP registration in Srinagar, Jammu and Kashmir
Following documents should be available in a scanned format to be attached with the form of registration of LLP in Srinagar, Jammu and Kashmir-
Documents of Prospective Partners in Srinagar, Jammu and Kashmir
i. Proof of Identification for Partners of LLP- All the partners are required to provide their PAN at the time of registering LLP. PAN card is primarily the ID proof required.
ii. Proof of Residence of Partner- Each partner in the LLP needs to submit a valid proof of residence which could be any one document out of Voter’s ID/ Passport, Driver’s license / Aadhaar Card. But, the name & other details as per address proof and PAN card should be exactly the same. In case details such as spelling of the name, father’s name or date of birth is different in the proof of residence & PAN card, it should be corrected before submission to RoC.
iii. Copy of utility Bills- Further, a copy of utility bills such as the latest bank statement, telephone bill, mobile bill, electricity bill, or gas bill should be submitted as residence proof. iv. Passport-sized photographs preferably on white background.
iv. Passport- sized photographs preferably be in a white background;
v. Copy of Passport- In case any foreign national intends to become a partner in an LLP, such foreign nationals & NRIs must submit a copy of their passport. Not only this, such passports must be notarized or apostilled by the relevant authorities in the country of such foreign nationals, and NRI or the Indian Embassy situated in that country can also sign the documents. However, in case the documents are in a language other than English, a copy of a notarized or apostilled translation copy shall be attached.
Documents of prospective LLP registered in Srinagar, Jammu and Kashmir
i. Proof of registered Address- It is compulsory for every LLP to submit an address proof of the registered office during registration or within 30 days of its incorporation. In case the LLP office is situated in a rented place, a copy of the rent agreement and a no-objection certificate from the landlord will be required to be attached.
ii. Any one of the partners will need to apply & obtain a digital signature certificate for filling & incorporation of LLP purposes since all documents and applications will be digitally signed by the authorized signatory.
iii. Copy of the Utility bills such as electricity or telephone bills must be submitted along with the proof of address. The proof of address should include the complete address of the premises and the name of the owner of the property. Utility bills should not be older than more than 2 months.
iv. Sale deed/property deed in English (in case of owned property).
Advantages of LLP Registration in Srinagar, Jammu and Kashmir
i. Limited Liability
An LLP is a body corporate and enjoys separate existence as a legal person apart from its partners in the eyes of law. Therefore, it offers the benefit of limited liability to its partners. In simple words, in the event of any debt recovery or dissolution of LLP, the liability of each partner is restricted to the agreed contribution by him & cannot go beyond such limit unless in exceptional circumstances such as fraud or mismanagement of business operations.
This benefit has been provided for the partners to undertake business operations without any worries and increases their assurance to undertake business activities.
ii. No upper limit for the partners
Under the provisions of the LLP Act, each partner must have at least two partners at the time of the registration. However, unlike a private company that cannot have more than 200 shareholders, there is no upper ceiling for the maximum number of partners in an LLP.
iii. Lesser Costs for Managing Compliances
Unlike a company that has to conduct audits, general & board meetings, etc. every year, there are fewer compliances which automatically reduce the costs of managing compliances for an LLP making it an attractive choice for entrepreneurs.
iv. Modest structure of Profit Sharing
In an LLP, the business profits are taxed only once and not after profits are shared in the hands of the partners of the LLP. Further, the payments made to partners in an LLP in India by way of payment of interest to partners, any other payment by way of salary, bonus, commission, or remuneration to partners is allowed a deduction under Section 40(b) of the Income-tax Act 1961.
v. Ease in transferring ownership
Unlike a partnership firm or a company, it is comparatively easier in an LLP to transfer interests that could be made by making amendments in the LLP Agreement.
vi. Suitable For Small Business
LLPs with a total capital contribution of fewer than ₹25 lakhs and an annual turnover lesser than ₹40 lakhs per year do not need any audits, making them the best option for smaller businesses and Startups.
Amendment to LLP Act 2008 in Srinagar, Jammu and Kashmir
The LLP Amendment Act was amended in 2021 and was notified on 11 February 2022, which brought changes in the LLP Act 2008 that has brought significant changes for the better regulation of LLP in India. Some other significant amendments are as follows-
Decriminalization of Monetary Offenses in Srinagar, Jammu and Kashmir
The LLP Amendment Act 2021 has decriminalized & reduced penalties for offenses related to technical, minor, and compliance-related offenses, which have been moved to the in-house Adjudication Mechanism framework along with modified penal provisions.
Power to Regional Officers to Compound Offense in Srinagar, Jammu and Kashmir
The new amendment act has given powers to a Regional officer to compound any offense under the amended legislation. The offense is punishable with a fine along with the process to be followed to compound these offenses as the fine will be charged based on the limit prescribed by the Act. However, the same limit shall not apply if the offender has committed the same offense within three years from the date of committing the first offense.
Reduced Penalties for Start-Up and LLPs in Srinagar, Jammu and Kashmir
Under the amended LLP Act, a new section 76A has been inserted that attempts to reduce fees & penalties in the case of a small LLP or a start-up. Accordingly, in case of a small LLP/start-up for certain offenses shall attract a penalty of half the amount as specified in the Act, which would be no more than Rs. 1 Lakh for LLP and 50k for each designated partner or any other person as per the case.
Establishment of Special Courts in Srinagar, Jammu and Kashmir
In order to ensure faster disposal of cases as well as a reduction in the burden of the normal courts, the Act also provides for the establishment of special courts to exclusively try the cases related to the offenses committed under the LLP Act 2008.
Other Key Amendments of LLP Registration in Srinagar, Jammu and Kashmir
The amended act has also provided relief to the designated partners of an LLP concerning the condition of maintaining its residency in India (residing at least for 180 days in the previous financial year). Thus, from now on the daily limit for the residential designated partners has been reduced from 180 days to 120 days during an FY under Section 7 of the apex act.
Further, the Act has also given recognition to the concept of Start-up LLP and provided the power to the Central government to recognize certain LLP as start-up LLP by issuing notifications from time.
Conclusion of LLP registration in Srinagar, Jammu and Kashmir
Therefore, an LLP registered in Srinagar, Jammu and Kashmir offers the benefit of limited liability & procedural flexibility to its partners to organize their internal administration & manage their business efficiently. The process of registration is a simpler, faster & convenient process that could be completed in four-five steps. Complete your process of LLP registration & start your journey today!
