LLP Registration

What Is Limited Liability Partnership?

Limited Liability Partnership (LLP) combines the benefits of a partnership with that of a limited liability company. In India, it took shape after January 2009 and was an instant success with startups and professional services. The idea behind LLP registration was to provide a form of business that is easy to maintain and benefit owners with limited liability.

Benefits of LLP Incorporation

Here are four major reasons why people tend to choose LLP registration as their business model:

Limited Liability

The members of an LLP registration are only liable for a small amount of debt incurred by the firm. In case of bankruptcy, the personal assets of the partners will not be taken into account. On the other hand, for proprietorships and partnerships, the personal assets of directors and partners will be seized if the business goes bankrupt.

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Separate Legal Entity

An LLP is a separate legal entity from the partners in it. It has an uninterrupted existence that follows perpetual succession, i.e., the partners might leave, but the business remains. The terms of dissolution have to be mutually agreed upon for the firm to dissolve.

Flexible Agreement

Transferring the ownership of an LLP is also simple. A person can easily be inducted as designated partner in LLP and the ownership is transferred to them.

Suitable For Small Business

LLPs having a capital amount less than ?25 lakhs and turnover below ?40 lakhs per year do not require any formal audits. This makes registering as an LLP beneficial for small businesses and startups.

LLP Registration Requirements and Eligibility Criteria

To be eligible for LLP company registration in india, one should meet the following criteria:

  • At least two partners are required to form a Limited Liability Partnership in India (no upper limit)
  • If a body corporate is a partner, a natural person must be nominated to represent it
  • Each partner must have an agreed contribution towards the shared capital
  • LLP should have an authorized capital of at least ?1 lakh
  • At least one designated partner should be an Indian resident.

Documents Required for LLP Registration

The documents required for LLP registration are as follows:

The partners has to provide the following documents:

  • PAN card or passport (foreign nationals or NRIs)
  • Aadhar card/ voter's ID/ passport/ driving license
  • Latest bank statement/ telephone bill/ mobile bill/ electricity bill/ gas bill
  • Passport-size photograph
  • Blank document with specimen signature.

Note: One partner must self-attest the first three documents. In the case of foreign nationals or NRIs, all the documents must be notarised (if currently in India or a noncommonwealth country) or apostilled (if from a commonwealth country).

For the registered office:

  • Utility bills
  • Notarized rental agreement in English
  • No-objection certificate from the property owner
  • Sale deed/property deed in English (in case of owned property).

How to Register an LLP in India?

You can register LLP through AccuFin Solutions. While we make LLP registration online a simple 3-step process for you, the actual registration process is elaborate and is explained below for your knowledge:

Step 1: Obtaining DSC And DIN

All the forms that need to be submitted online require the directors' DSC. So, the first step in the process is to get DSCs and DINs for 2 partners. We collect the necessary information from you and file it on your behalf.

Step 2: Application For Name Approval

Simultaneously, we check if the name you want to register under is available and reserve it for your LLP. You can check for name availability in the MCA portal.

The approval of the name will be made by the registrar only if the central government does not deem it undesirable. The name should not hold any resemblance to any of the existing partnership firms, LLPs, trademarks, or body corporates.

Step 3: LLP Agreement

The next step is to draft the LLP agreement and other documents for registration. An LLP agreement is very crucial in a limited liability partnership as it determines the mutual rights and duties amongst the partners, and between the LLP and the partners. Thus, our experts take utmost care in drafting this agreement.

The partners enter into the LLP agreement upon registering the LLP by filing Form 3 online on the MCA portal. This procedure has to be done within 30 days of the date of incorporation.

Step 4: LLP Incorporation Certificate

Our team will file the necessary forms and documents with the registrar. Once the registrar approves all the forms and documents, you get your LLP incorporation certificate and are almost set for running your business.

Step 5: Apply for Your PAN, TAN, & Bank Account

As soon as you get the incorporation certificate, we will apply for the PAN, TAN, and bank account for your LLP.

Time Taken for LLP Registration

The time taken to register a limited liability partnership India depends on receiving the required paperwork and verifying that all applicable LLP Act provisions have been followed. The Registrar will register the LLP, at most 14 days after Form-2 is filed, and issue a certificate of incorporation in Form-16.
 
     
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