LLP Registration (Limited Liability Partnership)

Limited Liability Partnership Registration: Limited Liability Partnership (LLP) was first introduced in the Limited Liability Partnership Act of 2008.  After its introduction, this was quite popular which brings the best from both of world of limited company and partnership firm.

LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.

Registering an LLP is quite easy and fast. The compliances are simple and cost effective and popular amongst micro, small & medium enterprises. MyFilings.IN can pitch in to provide superior experience in registration process.

The following process should be ensured while selection name of your Limited Liability Partnership (LLP)

• The name of the entity should end with LLP thereby suggesting the same is a LLP to outside world;
• The name should be unique and there is no existing entity with the same name
• The name should not be offensive to any section of the society
• The name should not reflect any resemblance to Central / State Government entity
• There should be any registered trademark in the same name

The main reason for choosing a Limited Liability Partnership (LLP) is the limited liability. It means the liability of designated partner is limited to the extent of contribution in the Limited Liability Partnership (LLP)

• Separate Legal Structure

Limited Liability Partnership (LLP) is separate legal entity vis a vis its partner. A designated partner may be admitted or retired from the entity but the Limited Liability Partnership (LLP) would continue functioning.

• Flexibility

Limited Liability Partnership (LLP) Agreement forms basic written documents ensuring smooth functioning of the firm. Modification of ownership is permissible via a simple documentation in this regard

• Cost Effective

The cost of managing a Limited Liability Partnership (LLP) is less than of Limited Company. The filing fess charged by  MCA is less than limited company

• Less onerous Compliance

The annual compliances of Limited Liability Partnership (LLP) is far lesser than limited company. This makes is ideal for Micro, Small and Medium Enterprises (MSME) sector to incorporate their business in corporate format under this structure. Want to know more about Limited Liability Partnership Compliances.

• No compulsory Statutory Audit

Unlike limited company where annual statutory audit is compulsory, Limited Liability Partnership (LLP) regulation does not set forth any such conditions. While audit may be required under different statute like Income Tax, GST etc depending on the threshold limit of those statutes.

• No Dividend Distribution Tax (DDT)

No DDT is charged on LLP and hence partner can withdrawn their profit from LLP subject to guidance as mentioned in LLP agreement.

The following are process of Limited Liability Partnership (LLP) registration in India

• Collate documents of Partners
• Fill up accurate and correct information relating to LLP
• Obtain Digital Signature Certificate (DSC) and DIN of Partners
• Complete all legal documentations
• Apply for name reservation (RUN – Reserve Unique Name)
• Verification of documents, preparation of declaration and details about Partners
• Submit all requisite documents/e-Form with MCA
• Allotment of Certificate of Incorporation from MCA
• Drafting of LLP Agreement
• Submission of LLP Agreement to ROC

• Step 1 : Obtaining DSC & DPIN of Designated Partners

The designated partners have to obtain Digital Signature Certificate (DSC). This is required for online filing of documents with MCA. Further, every designated partner has to obtain unique Designated Partner Identification Number (DPIN)

• Step 2 : Applying for approval of LLP Firm Name

Every Limited Liability Partnership (LLP) has to have unique name. The unique has to be searched at MCA portal and the same should not have been allotted to any existing LLP.

The Registrar approves a LLP name if the naming convention guideline is followed and there are no existing entity with the same name

• Step 3 : Documents submission for Limited Liability Partnership (LLP) Registration

Limited Liability Partnership (LLP) has to submit requisite documents for approval of certificate of incorporation relating to designated partner’s consent and current status of interests in other corporate entity.

• Step 4 : LLP Certificate of Incorporation

Registrar under Ministry of Corporate Affairs (MCA) allots Certificate of Incorporation duly mentioned LLP Identification Number, Name of LLP, Date of Incorporation of Limited Liability Partnership (LLP)

• Step 5 : LLP Agreement

LLP Agreement is a written document duly mentioning the rights, responsibility and liabilities of the designated partner. It defines the guardrail within which the functioning and day to day operation of the Limited Liability Partnership (LLP) needs to carried out.

• Step 6 : Obtaining PAN and TAN number

After allotment of certificate of incorporation, the entity needs to apply for Permanent Account N​umber (PAN) and Tax Deduction and Collection Account Number (TAN) with NSDL.

• Step 7 : Opening of Bank account

Once the above documents are completed, the next step would be opening of bank account, so that entire operational transaction can be conducted in a smooth manner.

TO BE SUBMITTED BY PARTNERS

• Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
• Scanned copy of Voter’s ID/Passport/Driver’s License
• Scanned copy of Latest Bank Statement/Telephone /Electricity or Gas Bill
• Scanned passport-sized photograph
• Specimen signature (blank document with signature [partners only])

FOR THE REGISTERED OFFICE

• Scanned copy of Latest Bank Statement/Telephone/ Electricity or Gas Bill
• Scanned copy of Notarised Rental Agreement in English
• Scanned copy of No-objection Certificate from property owner
• Scanned copy of Sale Deed/Property Deed in English (in case of owned property)

Minimum Requirements For LLP Registration

• Minimum 2 Designated partners are required.
• A partnership Agreement must be drafted and registered with MCA after successful LLP registration
• No minimum capital requirement.

MyFilings.IN has years of experience in LLP registrations. All you need to do is call us or email us for hassle-free LLP registrations in India.