Overview of LLP registration in Visakhapatnam, Andhra Pradesh
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 Visakhapatnam, Andhra Pradesh, 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 Andhra Pradesh
Andhra Pradesh is located in the southeastern coastal region of India, and it is the tenth most populous state and seventh-largest state by area in India. It is bordered by Chhattisgarh, Karnataka,Odisha, Tamil Nadu,Telangana&The Bay of Bengal. The state was formed on 01 October 1953, and it is the first state whose formation was based on language. In June 2014, Andhra Pradesh went through reorganization for administrative purposes, and Telangana was carved out from Andhra Pradesh.
Capital– Amaravati
The economy of Andhra Pradesh
The economy of Andhra Pradesh is mainly based on the primary sector. The economy of Andhra Pradesh is primarily based on agriculture and livestock. Andhra Pradesh mainly consists of three agricultural economic zones – the first is the Chittoor district for mango pulp and vegetables, the second is the Krishna district for mangoes, and lastly, the Guntur district is for chillies.
Rice is the primary crop of the state. Andhra Pradesh is known as the ”Rice bowl of India’ as it is a significant exporter of Rice. Besides agriculture, livestock and poultry are the other two profit-yielding businesses in Andhra Pradesh. It is also called the ”Egg bowl of Asia’ as it is the largest producer of eggs in the country.
Infrastructure and Industries in Andhra Pradesh
Talking about the state’s infrastructure it is highly focused on developing a world-class infrastructure. The State Government is widening the state’s highways; besides, National Highway 16 also passes through the state. Currently, under the Andhra Pradesh State Fiber Net Limited (APSFL) initiative, the Government is trying to set up an optical fiber network to connect the thirteen districts of the state.
The primary industrial sector in Andhra Pradesh is Pharmaceutical, textiles, and automobiles. By improving its infrastructure and connectivity, Andhra Pradesh is also emerging in biotechnology and information technology.
Resources in Andhra Pradesh
Andhra Pradesh has varied geological formations that contain a rich variety of industrial minerals and building stones. The rich and diverse industrial minerals and building stones make Andhra Pradesh one of India’s storehouses of mineral resources.
How can mining affect the fate of Andhra Pradesh?
Mining is expected to be the overall infrastructure and industrial development growth engine. The Tummalapalle Uranium Mine in Andhra is reported to have 49,000 tonnes of ore, and the state is estimated to hold reserves totalling three times its current size. Andhra Pradesh has metal-grade bauxite deposits, gas reserves, etc., that are expected to provide rapid economic growth. So currently, mining is expected to affect the fate of Andhra Pradesh.
Top business ideas in Andhra Pradesh
The Government of Andhra Pradesh has implemented various reforms in the business sector and has been ranked the No. 01 state on ease of doing business for consecutively two years (2016-17). Here are some business startup ideas that one can try in Andhra Pradesh.
Horticulture
Andhra Pradesh is the top producer of papaya tomato, chilies, oil palm, lime, cocoa, and the second leading producer of turmeric sweet orange, mango, and cashew in India. The recent increase in demand for organic food makes Andhra Pradesh suitable for horticulture. You will get ample resources for starting a horticulture business in Andhra Pradesh.
Eco-Tourism
Andhra Pradesh has a wide forest cover that makes it perfect for eco-tourism. The state is close to nature and offers exotic natural views that attract many people. Beautiful views and greenery make Andhra Pradesh suitable for eco-tourism.
Sericulture
Being the second-largest producer of silk Andhra Pradesh is perfect for sericulture. The sericulture business has a wide scope in Andhra Pradesh. If you plan to start a sericulture business, you can develop it as a local business idea.
Fisheries
Andhra Pradesh is the top fish and shrimp producer in India, and the Fisheries employ more than 14.5 lakhs people. The Government provides power tariff concessions to around 53,500 aquaculture farmers. That’s why Andhra Pradesh stands first in the Aquaculture area and production. Besides this, the state government provides many subsidized resources for the maintenance and care of fish. Fisheries business in Andhra Pradesh is undoubtedly one of the beneficiary business ideas. If you plan to start a fisheries business in Andhra Pradesh, you will also receive a power supply at a subsidized power rate from the state government. Above all, you will be able to take advantage of all the schemes and policies of the Andhra Pradesh Government made for the promotion of fisheries and aquaculture.
Neem Oil Extraction
Another significant business idea in Andhra Pradesh is Neem oil extraction. Andhra Pradesh is naturally suitable for the fast growth of Neem trees. That’s why the neem oil extraction business or other businesses related to neem has a vast scope in Andhra Pradesh. Neem is of major importance in the skincare and beauty industry, so neem oil extraction and other businesses related to neem will surely yield huge profits.
Poultry Farming
Andhra Pradesh is mainly based on Primary sector activities, and it is among the states that promote the animal husbandry sector. The poultry farming business in Andhra Pradesh immensely depends on milk, meat, and egg, and Andhra Pradesh has a broad scope in poultry farming and other related businesses.
Textile business
Andhra Pradesh is the second-largest cotton and silk fabric producer in India. Textile business in Andhra Pradesh is very prospering and has a wide scope. The skilled artisans and experts required to produce cotton and silk garment and fabric are locally available in Andhra Pradesh. With the help of local artisans and readily available raw material, one can easily set up a small-scale textile business in Andhra Pradesh.
Forest resource supplier
Andhra Pradesh has a wide forest cover, making it a rich source of forest-related resources. The craze for forest resources is increasing day by day in the country. The forest resources, including beedi leaves, nuts, bamboo, neelavema, tamarind, rosewood, etc., are immensely demanded. So, the forest resource supplier business will not take you to loss.
Startup Ecosystem in Andhra Pradesh
Anudeep Chappa, the associate director of Tie Amravati, has stated that the talent pool has been moving out of Andhra Pradesh to other places like Bengaluru or Hyderabad. The movement is taking place immediately after graduation. Anudeep Chappa observed a similar trend in startups also and predicted that it could immensely affect the startup ecosystem of Andhra Pradesh. Earlier, Andhra Pradesh used to house the IT hub of the country, but after the formation of Telangana, the state had to suffer significant setbacks.
How is Andhra Pradesh Government boosting the startup growth of the state?
Andhra Pradesh has made slow but steady development in building a startup ecosystem. The Government has taken a lot of initiatives and built schemes to attract the talent pool and startups. The state government is taking active measures to promote the rise of the tech economy.
The Government of Andhra Pradesh has set up incubators and accelerators to support startup growth. Besides this, the Government is trying to help startups grow by aiding the innovation fund of INR 100 crores. Along with this, the state government of Andhra Pradesh provides performance-linked assistance of over 12 thousand Indian rupees per month for startups and more.
What is ”Make in AP?”
Make in AP is a state-government established platform for startups. With the help of the Make in AP (Andhra Pradesh) initiative, young professionals and entrepreneurs can interact with mentors and corporates to develop their businesses. Through the Make in AP initiative, the Government provides adequate support to startups by providing cash prizes, incubation, mentoring, etc.
Salient Features of LLP registered in Visakhapatnam, Andhra Pradesh
- 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 Visakhapatnam, Andhra Pradesh
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 Visakhapatnam, Andhra Pradesh
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 Visakhapatnam, Andhra Pradesh
i. Acquire a Digital Signature Certificate (DSC) in Visakhapatnam, Andhra Pradesh
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 Visakhapatnam, Andhra Pradesh
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 Visakhapatnam, Andhra Pradesh
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 Visakhapatnam, Andhra Pradesh
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 Visakhapatnam, Andhra Pradesh
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 Visakhapatnam, Andhra Pradesh
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 Visakhapatnam, Andhra Pradesh
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 Visakhapatnam, Andhra Pradesh
Following documents should be available in a scanned format to be attached with the form of registration of LLP in Visakhapatnam, Andhra Pradesh-
Documents of Prospective Partners in Visakhapatnam, Andhra Pradesh
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 Visakhapatnam, Andhra Pradesh
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 Visakhapatnam, Andhra Pradesh
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 Visakhapatnam, Andhra Pradesh
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 Visakhapatnam, Andhra Pradesh
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 Visakhapatnam, Andhra Pradesh
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 Visakhapatnam, Andhra Pradesh
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 Visakhapatnam, Andhra Pradesh
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 Visakhapatnam, Andhra Pradesh
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 Visakhapatnam, Andhra Pradesh
Therefore, an LLP registered in Visakhapatnam, Andhra Pradesh 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!
