Limited Liability Partnership (LLP) structure is a mixture of partnership and plc structures. As a result, it brings together the benefits of both these business structures. LLP was first introduced by LLP Act, 2008.
For LLP registration in India, a minimum of 2 designated partners are required while there is no upper limit for partners. But yes, at least one designated partner must be an Indian citizen or must have stayed in India for at least 182 days prior to the date of submitting online LLP registration application.
In this structure, the LLP Agreement is the most important document that carries the rights and responsibilities of designated partners. Partners are also responsible for the compliances based on LLP Act and specific provisions in the LLP agreement. Read this blog to quickly know about the characteristics of LLP, limited liability partnership registration process and mandatory documents required.
Characteristics of Limited Liability Partnership
- Partners have separate legal entities from the company
- In case of any distress, partners are liable to pay only the contribution made by them
- Formation cost and compliances are very low
- There is no authorized capital required to start an LLP
Limited Liability Partnership Registration Process
LLP in India is governed by the Ministry of Corporate Affairs (MCA). It takes 18-20 working days to register LLP Company in India. Below are the important steps to follow:
- Acquire Digital Signature Certificate (DSC)
DSC is very important for the designated partners. This is a digital signature that is used before submitting the documents to ROC. The whole registration process is online, thus digital signature is required.
- Obtain Director Identification Number (DIN)
DIN is required for all designated partners for LLP registration. For acquiring DIN, Aadhaar Card and PAN card are required.
- Name Approval
The name approval for a Limited Liability Partnership registration is done by filling the RUN-LLP (Reserve Unique Name-LLP) form. Before finalizing the name, you should check for its availability on the MCA portal. You can check if the name already exists or resembles another company’s name closely.
The Registrar will approve the name only if it is unique and not used earlier. With the name approval application, 2 names can be submitted. In case it gets rejected, you will get another chance to submit 2 more names. Again, if you get a rejection, a new application needs to be filed. Be unique, be you while thinking of company name options for your LLP company registration.
- LLP Incorporation
For the incorporation of LLP, form FiLLiP (Form for Incorporation of Limited Liability Partnership), should be filed to the registrar. If any partner does not have DIN, an application for DIN is also submitted under this form.
Once the application is accepted, the Registrar will issue the certificate. Then comes the application for PAN (Permanent Account Number) and TAN (Tax Account Number). These fulfil the taxation purposes. After that, an LLP agreement needs to be made within 30 days of LLP registration otherwise a fine will be applicable.
- LLP Agreement
LLP agreement is a mutual agreement between the partners that carry their rights and responsibilities. For LLP agreement, Form 3 is filed on the MCA portal. This form is filed within 30 days from the LLP incorporation. The LLP agreement is printed on stamp paper. The stamp paper duty differs from state to state. Hence, the LLP registration fees are different in every state. You can check state-wise stamp duty on LLP agreement beforehand.
Also, know the document checklist, so that you will be prepared before you start the registration process.
Documents required for Limited Liability Partnership registration
Two sets of documents are required, one of the partners and other of the registered office.
Documents of Designated Partners
PAN Card – PAN card is a primary document that is required at the time of LLP company registration.
Identity Proof – Any one of these documents is required as identity proof: Voter ID/ Passport/ Driver License/ Aadhaar Card. The details on these documents must match the PAN card otherwise you will need to update them before submission.
Address Proof – Any one of the following documents is required as address proof- Telephone bill/ Mobile Bill/ Bank Statement with latest transaction/ Electricity Bill/ Gas Bill. Also, this bill should not be older than 2 months.
Passport size photograph – Passport size photograph is mandatory for all the designated partners.
In case of a foreign partner, their passport is mandatory. They’ll also need to submit an address proof, for which they can submit- Driving License/ Bank Statement with recent activities/ Residence Card or any other address proof issued by the government of that country.
All these documents should be notarized and apostilled by the foreign authority or signed by an Indian embassy of that country.
Documents of the Registered Office
Registered Office Proof – The registered office address is required at the time of LLP registration or it needs to be submitted within 30 days of the LLP incorporation.
Rent Agreement and NOC – If it is a rented property, the rent agreement and NOC from the landlord are mandatory.
Office Address Proof – Any oneutility bill is required from the following list- Gas Bill/ Electricity Bill/ Telephone Bill. These bills need to contain the owner’s name along with the complete address of the office. Also, this document should not be older than 2 months.
And that’s it! You now know the limited liability partnership registration process in India.
We believe you are all set to start your entrepreneurial journey. Thanks to less compliance requirements, you will be able to pay more attention to your core business activities. Once you’re ready, get in touch with professionals like from LegalWiz.in who will make sure the entire process is done smoothly and efficiently.