What is an LLP?
An LLP is an alternative enterprise structure that combines the advantages of a limited liability corporation with the flexibility of a partnership. If the partners want to leave, the LLP can continue to exist. It has the authority to enter agreements and own property in its title. Let's look at the minimum capital needed to start an LLP.
There is no liability for its assets, but the liability of the partner is limited to their agreed-upon contribution to the LLP. Additionally, no partner will be held responsible for the unauthorized actions of other partners, so individual partners will not face joint liability for illegal business decisions or wrongdoing made by another partner.
Features of an LLP Registration Online
These are some features of LLP Registration Online Procedures:
- It is a separate legal entity like a company.
- Each partner's liability is limited to the amount contributed by the partner.
- The formation of an LLP is inexpensive.
- Less regulation and compliance.
- There is no minimum capital contribution requirement.
The Benefits of an LLP Registration Online
These are some Advantages of procedures of LLP Registration online in India:
- A separate legal entity.
- The partners' liability is restricted.
- Regulation is minimal while costs are low.
- There is no minimum capital contribution requirement.
The Process of LLP Registration Online
These are the procedure for Online LLP Registration in India:
Step 1: Get a certificate for a digital signature (DSC).
Step 2: Request a Director Identification Number (DIN).
Step 3: Name Acceptance
Step 4: Limited Liability Partnership Incorporation.
Step 5: Complete and sign the Limited Liability Partnership (LLP) Contract.
Documents Required to Register an LLP
Documents for Online LLP Registration Online:
A. Partners' Documents-
- All partners must provide their PAN when registering an LLP. The PAN card serves as the primary identification system.
- The partner may provide the following documents: voter identification, passport, driver's licence, or Aadhar Card. The name and other information should be identical between the PAN card and the address proof. Before submitting to RoC, make sure the spelling of one's name, the name of one, or one's birthdate is correct if it differs between the address proof and the PAN card.
- You should provide residence proof in the form of the latest bank statement, phone, mobile, electricity, or gas bill. A bill or statement must include the partner's name and should be approximately two to three months old.
- Partners must also provide a passport-sized photograph, preferably against a white background.
- Foreign nationals and NRIs must submit their passports to become partners in an Indian LLP. Transport documents must be signed or apostilled by the relevant authorities in the country of foreign nationals and NRIs; otherwise, the e-signatures can appoint signed by the Indian Embassy in that country.
B. LLP documentation-
- Proof of registered office must provide at the time of registration or within 30 days of incorporation. The landlord's no-objection certificate and rent agreement are required as long as the registered office is on rent. The bill should include the owner's name as well as the full address of the property, and it should be no more than two months old.
- Since the authorized signatory will digitally sign all documents and applications, one of the designated partners must also choose to collect a digital signature certificate.
Minimum Capital Requirement to Form an LLP
- Capital cannot be made clear as the foundation of any commercial advertising structure. The laws governing various business structures frequently stipulate a minimum amount of startup capital required at the time of incorporation or establishment.
- As such, "minimum capital" refers to the money needed from the founders of LLPs or individuals when acknowledging their status as partners in an existing LLP.
- There is no requirement that the partners contribute a certain amount of capital, and the terms of the LLP agreement will govern the entirety of the LLP's capital contribution aspect.
- As a result, unlike in a corporation, there is no concept of shareholding in a limited liability partnership, a limited liability entity, or some investment from partners, known as a partner's capital, to form an LLP. In reality, a partner's contribution could take the form of tangible, movable, immovable, and intangible assets, as well as any other advantages to the LLP.
The Time Required for LLP Registration
From obtaining a DSC to filing Form 3, establishing an LLP takes about 10 days, subject to departmental approval and departmental revert.
Is LLP registration required?
It is required for an LLP to register on the MCA(Ministry of Corporate Affairs) portal. A legal entity such as an LLP must enlist under the Limited Liability Partnership (LLP) Act.
Who can join an LLP as a partner?
A partner in an LLP can be any person or corporation. However, LLPs do not allow partners who are minors, mentally ill or have not declared insolvent.
In an LLP, how many assigned partners can appoint?
Every LLP should have at least two assigned partners, one of whom must be a resident of India. At least two of the partners in an LLP are body corporates, so at least two of their nominees should act as designated partners. According to the LLP agreement, any partner can get an award.
Is there a capital limit in an LLP?
In an LLP, there is no minimum or maximum capital limit. Anyone can form an LLP with any amount of capital, whether Rs. 100 or Rs. 100000/- and the LLP can increase their capital contribution to any amount.
Conclusion
There is no minimum capital requirement for partnership registration. Partners can agree on the company's minimum capital. After deciding on future enterprise operating expenses, partners can show up at the amount required to establish a partnership. Even after registration, partners can modify the partnership company's minimum capital as needed. If you have any queries regarding the Minimum Capital Requirement to Form an LLP, feel free to ask our experts at Lawgical India. It is a one-stop shop for everything related to business, law, registrations, liabilities, etc. If you are seeking assistance, please check with our support team in Lawgical India.
