Limited Liability Partnership Registration

The concept of a Limited Liability Partnership (LLP) entails a unique business setup that merges the attributes of a partnership and a company. Partners in an LLP enjoy limited liability, similar to shareholders in a company, while also benefiting from the flexibility and simplicity associated with a partnership. This arrangement bestows the LLP with its own legal identity, enabling it to undertake legal actions and be subject to legal actions separately from its partners.

Requirements and Eligibility Conditions for Registering an LLP

To register an LLP company in India, it is necessary to comply with the following criteria:

• Required minimum authorized capital: At least Rs.1 lakh of authorized capital is necessary for the LLP.
• Partner Nomination Process for Body Corporate: If a company assumes the role of a partner, it must designate a natural person to act as its representative.
• Minimum of two partners: The formation of a Limited Liability Partnership in India mandates the involvement of a minimum of two partners, with no prescribed upper limit on the maximum number of partners.
• Partners with a Designation: Within the partnership framework, it is a requirement to have at least two chosen partners who are natural individuals. Additionally, one of these designated partners must maintain residency in India.
• Nominating a Body Corporate Partner: If a corporation assumes the role of a partner, a designated natural person must act as its representative.
• Designated Partner from India: A resident status in India is mandatory for at least one designated partner of the LLP.

Required Documents for LLP Registration

In order to commence the registration process for an LLP, partners must submit the following documents:

• Validation of Registered Office Address:
  Submission requirements entail the landlord’s lease agreement and a no-objection certificate for rented office space. Furthermore, a recent utility bill (gas, electricity, or telephone) reflecting the complete address and owner’s name (dated two months or more) is mandatory.
• Requirements for foreigners and NRIs
  If you’re a foreign national or an NRI looking to team up with an Indian LLP, make sure to provide your passport. You’ll also need to show proof of address, like a driver’s license, bank statement, residence card, or any government-issued ID with your address on it.
• PAN Card/Identification Proof of Partners:
  Partners must furnish address proof by presenting one of the following documents: Voter’s ID, Passport, Driver’s License, or Aadhar Card.
• Digital Signature Certificate (DSC):
  At least one designated partner is obligated to possess a digital signature certificate (DSC) for the purpose of digitally signing documents.
• Verification of Partners’ Residence:
  Partners are requested to supply recent documents like a bank statement, telephone bill, mobile bill, electricity bill, or gas bill from the last 2-3 months.
• Photograph of passport dimensions:
  Partners must supply a passport-size photograph accompanied by a white background.

Guidelines for LLP Registration

There are various essential steps involved in setting up an LLP. Here is a thorough guide to help you incorporate your LLP.

• Acquire a Digital Signature Certificate (DSC)
• A Digital Signature Certificate (DSC) is a prerequisite for all government filings that necessitate the use of digital signatures. Therefore, individuals aspiring to become partners of the LLP must obtain this certificate to meet the necessary requirements.
• Procure a Director Identification Number (DIN).
• Individuals who do not have a DIN must apply for one. The Director Identification Number (DIN) is a unique identification number given to individuals who aim to become directors or designated partners in LLP.
• Opt for a Title for the LLP
• When naming your LLP, make sure to select a distinctive and fitting name that aligns with the regulations outlined by the Ministry of Corporate Affairs.
• Form for Incorporation of LLP (FiLLiP)
• The information collected in this form pertains to the proposed LLP, partners, LLP agreement, and registered office address. It also includes a declaration from partners agreeing to act as designated partners and adhere to LLP regulations.
• LLP Agreement Draft
• Establish the LLP Agreement delineating partner rights, duties, and obligations. This agreement should be notarized and registered with the Ministry of Corporate Affairs within 30 days of the company’s formation.
• Attain a Certificate of Incorporation
• Upon the successful filing and verification of forms and documents, the Registrar of Companies (RoC) will issue the Certificate of Incorporation, thereby legally recognizing the existence of the LLP.
• Apply for both PAN and TAN
• Upon receiving the Certificate of Incorporation, it is essential to promptly apply for the Permanent Account Number (PAN) and TAN for the LLP.

Advantages offered by Limited Liability Partnerships

Below, you will find a thorough discussion of the advantages of a Limited Liability Partnership (LLP).

• Maximizes Savings in both Money and Time
• Initiating an LLP involves lower expenses and a simplified regulatory framework as opposed to larger corporations. Furthermore, the annual paperwork obligations are significantly reduced.
• Partners encounter minimal risk
• The partners of a limited liability partnership are accountable solely for what they invest. They are not liable for all debts or losses, which helps maintain their reputation.
• Individual Legal Identity
• Just like large companies, an LLP operates as an independent entity. This feature instills trust and promotes cooperation, as it possesses the ability to engage in legal activities autonomously.
• No fixed monetary requirement

A significant capital is not necessary to establish an LLP. Partners have the option to contribute any amount they choose.