Limited Liability Partnership (LLP) is introduced as a corporate entity in India with an aim at medium-sized corporations. Avail of an LLP while being easier to maintain compliance with minimal registration fees, and it easily keeps an LLP as the first choice for many remote industries in India. This blog looks at the LLP company registration procedure with the documentation requirements.
What is a Limited Liability Partnership?
The Limited Liability Partnership Act 2008 introduced an LLP in India with the fundamental principle of maintaining a business entity that provides limited liability to the owners. The primary advantage of an LLP is that not only one partner is liable for the other partner's negligence or misconduct. It protects the owners from LLP debts. It also describes that all the partners in an LLP relish limited liability protection, and so can the partners manage the business directly.
What are the advantages of registration of an LLP in India?
- An LLP(Limited Liability Partnership) is an independent legal entity from the entity members.
- LLP offers tremendous flexibility in operations and the distribution of profits through documentation.
- It results in better management for the corporation.
- Assumption of an LLP as a legal person can lead it to rent, lease, buy, or even be responsible for its property.
Features of a limited liability partnership
- A limited liability partnership is an entity incorporated under the LLP Act 2008.
- An LLP has its own legal entity, which separates it from its partners.
- A limited liability partnership can be a legal person who cultivates legal processes with all the rights of an individual.
- A limited liability partnership has an indefinite sequence as a joint stock corporation.
- A limited liability partnership operates through its authorized partners.
- The partners' liability must designate the contribution amount towards the limited liability partnership.
How to Register a limited liability partnership online?
Following these 5 Steps to register your limited liability partnership online can be done hassle-free:
Step 1: Obtain DSC:-
Before applying for LLP company registration digital signature certificate must be obtained from a designated person to the proffered LLP. The main motive behind obtaining a DSC is to have documents for online registration to file for an LLP. It can be acquired from a certified government organization.
Step 2: Apply for DIN:-
In this step, you must apply for the Director Identification Number for all the empowered partners of the proposed limited liability partnership. The DIN Application is assembled with the DIR-3 Form, and you must attach the scanned copies of the Aadhaar or PAN Card along with the DIN Application.
Step 3: Name Reservation:-
This step is for reserving the name of an LLP, which the Central Registration Centre shall examine. You have to explore the LLP registration name to see if the name you select is accessible on the LLP registration online MCA portal. Then the system will recommend you for closely resembling other names based on the name you are searching for. It will assist you in selecting an appropriate and similar name to any existing or trademarked name. To reserve the name, you must fill out the RUN-LLP Form. If the authority rejects your name, you must re-submit the application within 15 days, and there is a provision to propose two names in the RUN-LLP Form.
Step 4: Incorporation of an LLP:-
You filed an incorporation form for an LLP with the assistance of the registrar having authority over where an LLP registration office is situated. After getting approval from the central registration centre, the name shall be filled as the LLP. Then, after paying the fees as per Annexure' A,' an individual can apply for the allotment of DPIN, which has the allotment only for two individuals as it gets the appointment of being the partner in the LLP and does not hold a DIN or DPIN.
Step 5: File LLP Agreement:-
This agreement says that the mutual duties and rights between the LLP and its partners. The LLP agreement must be filled out within a month of the incorporation of an LLP in Form 3 on the MCA portal.
Documents required for LLP Registration Online
These are the following documents of the partners and LLP required for LLP registration online:
Documents of partners
- ID Proof of the Partners:
We must require all partners' PAN cards at LLP registration. Since a PAN card is primary ID proof and links to all other identity proofs, it can be handy to register an LLP.
- Address Proof of the Partners:
Any document such as Voter's Card, Driving License, Passport, or Aadhaar Card is used as the address proof of the partners. The details, like the name's spelling, date of birth, etc., mentioned on the PAN card must be similar to the address proof.
- Residential Proof of the Partners:
Documents, such as bank statements, mobile bills, telephone bills, or electricity bills, as residential proof, and the details, like name, should match the PAN Card information.
- Photograph:
The partners' passport-size photo must be submitted along with the other documents. Passport: It is compulsory to submit an NRI Partners passport and address proof.
Documents of LLP:
- Address Proof of the Registered Office:
During the LLP registration, the address proof of the landlord must be approximately 2 months old and submitted to the registered office. In case the registered office is rented or leased, the rental agreement or lease deed must be submitted along with the owner premise's consent form and their identity proof to the registered office.
- Digital Signature Certificate: An individual must submit their partner's DSC and other documents.
How much does it cost to register an LLP in India?
The government fees for LLP registration are as follows:
The price for obtaining DSC is INR 1,500-2,000 approximately for 2 partners.
The price for a DIN Application is around INR 1,000 for 2 partners.
The price for a name reservation is INR 200.
The price for incorporation of an LLP depends on the capital contribution, either a contribution up to INR 1,00,000 – INR 500 or a contribution up to INR 1,00,000 – 5,00,000– INR 2000.
The price for the File LLP Agreement is somewhat dependent on the capital contribution, which is a contribution of up to INR 1,00,000 – INR 50 for filing Form 3 & Stamp Duty.
Conclusion
LLP formation commences from obtaining DSC to Filing Form 3 takes approximately 15 days, subject to departmental approval and revert from the respective department. Let our experts in Lawgical India manage your LLP registration while doing for the best! Feel free to contact Lawgical India for any queries regarding your LLP registration.
