What is a LLP?
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
- 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
- Validation of Registered Office Address: landlord’s lease agreement and no-objection certificate for rented office space, plus a recent utility bill.
- Requirements for foreigners and NRIs: Passport and address proof (license, bank statement, residence card, or government ID).
- PAN Card/Identification Proof of Partners: Voter ID, Passport, Driver’s License, or Aadhaar Card.
- Digital Signature Certificate (DSC): At least one designated partner must have a DSC.
- Verification of Partners’ Residence: Bank statement, telephone bill, mobile bill, or electricity/gas bill from the last 2–3 months.
- Photograph of passport dimensions with white background.
Guidelines for LLP Registration
- Acquire a Digital Signature Certificate (DSC).
- Procure a Director Identification Number (DIN).
- Opt for a Title for the LLP ensuring compliance with MCA naming rules.
- File Form for Incorporation of LLP (FiLLiP) with all partner and agreement details.
- Establish an LLP Agreement defining partner rights, duties, and obligations, notarized within 30 days.
- Attain a Certificate of Incorporation from the Registrar of Companies.
- Apply for PAN and TAN after incorporation.
Advantages offered by Limited Liability Partnerships
- Maximizes Savings in both Money and Time.
- Partners encounter minimal risk as liability is limited.
- LLP has an Individual Legal Identity like a company.
- No fixed monetary requirement — partners may contribute any amount.
Expert guidance
Dedicated team
Client satisfaction
Ongoing support
Transparent processes
FAQ’s for LLP Registration
Who may apply for LLP?
To establish an LLP, it is necessary to appoint a minimum of two individuals as Designated Partners. These Designated Partners must be at least 18 years old and have a valid Indian address. Designated Partners can be individuals or corporate entities.
