Limited Liability Partnership (LLP) Registration

Limited Liability Partnership (LLP) was started in India through the Limited Liability Partnership Act (2008). Behind the beginning of Limited Liability Partnership (LLP), the basic foundation is to provide a form of business unit which is limited to provide limited liability for owners. Since it started in 2010, LLP has received more than 1 lakh registrations till September 2014.

The main advantage of limited liability partnerships on a traditional partnership firm is that in LLP, a partner is not responsible or liable for the misconduct or negligence of another partner. An LLP also provides limited liability protection for owners from LLP’s loan. Therefore, in an LLP, all partners enjoy a kind of limited liability protection for the safety of each person within the same partnership as private limited company shareholders. However, unlike the private limited company shareholder, partners of an LLP have the right to directly manage the business.

The LLP is the easiest form of business to join and manage in India. With an easy incorporation process and simple compliance formalities, LLP is preferred by professional, subtle and small businesses, which are family owned or closely-held. Since LLPs are not capable of issuing equity shares, therefore, LLP should be used for any business that has a plan to raise equity funds during its lifetime.

eMindsCA.com is a market leader in LLP registration services in India. In addition to LLP registration, eMindsCA.com also offers a variety of business registration services, such as private limited company registration, a person company registration, fund company registration, section 8 company registration, manufacturer company registration and Indian subsidiary registration. The average time taken for completing LLP registration is approximately 15 – 25 working days, subject to the submission of government processing time and customer documents. Get a free consultation on LLP registration and business setup in India by scheduling an appointment with eMindsCA Advisor.

Quick and easy steps to enter LLP in India – a detailed procedure

eMindsCA.com, we make the registration process for the LLP smooth and hassle-free.

Manage basic documents of partners
Fill in the online form with accurate information
Apply for digital signature of partners and DIN
Prepare all legal documents
Apply for the availability of the name of the proposed LLP
Verification of all documents and forms by the government
File incorporation docs with roc
Obtain LLP Incorporation Certificate
Formatting of LLP Agreement
Filing of LLP Agreement

Step 1: OBTAINING DSC and DIN
The first step is to get the DSC of the desired partners of limited liability partnership. The reason for this is that all the forms are required to be submitted online and digital signatures are required for the directors.

The law also requires that all the directors file for the DIN number. The application form to be done in DIR-3.

Step 2: Application for Name
This process involves the registration of LLPs. Before doing this, you have to see if the name has already been taken. You can check the free search facility on MCA portal. The Registrar approves only the LLP names which have not been taken earlier.

Step 3: LLP Agreement
The LLP agreement is very important in a limited liability partnership because it determines mutual rights and duties between partners and between LLPs and partners. Partners enter the LLP Agreement on LLA registration by entering Form 3 online on the MCA portal. This process is to be done within 30 days of the date of incorporation.

Step 4: LLP promotion certificate
Once the registrar approves your MoA and AOA, then you are close to registering your LLP. The next step is to get the LLP incorporation certificate. You can do this by submitting all the documents to the Registrar. The time limit is between 2-15 days. After getting your LLP incorporation certificate, you are ready to go.

Step 5: Application for PAN and Tan and Bank Account
As soon as you get the certificate of incorporation, you will have to apply for NSDL for your company PAN & TAN. The cost of this process is less than Rs 200 and it takes about three weeks to complete it.

Documents required for LLP registration in India
If it comes to documents in the law of LLP registration in India, then there is no need to apply it more legally.

To be presented by the partners
Scanned copy of PAN card or passport (Foreign Citizens and Overseas Indians)
Adhar Card / Scanned copy of voter identity card / passport / driver license
Scanned copy of latest bank statement/telephone or mobile bill/electricity or gas bill
Scanned passport size photo sample signature (blank document with signature [partner only])
Note: One of the partners must self-verify the first three documents. In the case of foreign nationals and non-resident Indians, all documents should be notarized (if presently in India or non-Commonwealth countries) or upstream (if in a Commonwealth country).

For registered office
Scanned copy of latest bank statement/telephone or mobile bill/electricity or gas bill
Scanned copy of Notarised Rental Agreement in English
Scanned copy of NOC from owner of property
Scanned copy of Sale Deed / Property Deed in English (in case of ownership property)

Note: The business location is not required for your registered office; It can also be your residence.

Check whether your firm is eligible for LLP in India
For any type of business, certain requirements must be met to be eligible for registration as LLP

Any business with:

Minimum two companions, There is no limit to the maximum number of partners
Nomination for a natural person, if a body corporate is a partner
No share capital is required, although each participant has to contribute for it.
Minimum capital contribution: There is no minimum capital requirement for LLP (or for the company, for that matter). At least Rs. Should have an authorized capital 1 Lac.
At least one nominated partner as an Indian resident
DPIN (Director Identification Number) for all partners
DSC (Digital Signature Certificates) for all designated partners
Address Proof for LLP Office There is no need to have a commercial location in the registered office of an LLP. Even a rented house can be a registered office, so unless the NoC gets received from the landlord.

Factors to consider while selecting the LLP name
Registrar of Companies (ROC) issued naming guidelines for LLP. It is important that you follow the rules closely or your application may end, which will make the process very long.

Unique components:
In Alphabet Internet Private Limited, Alphabeta is a unique component. Now, once taken, no other business will be named in the categories related to the Internet.

Blacklist:
Abbreviations, adjectives, and generic words are rejected. So XYZ will be discarded, as is the good quality biscuits. The word bank, exchange and stock exchange, will not be rejected even if approved by the RBI or SEBI.

No Objects:
The IP India website should not have a registered trademark with the same name. If any, then the name can only be approved if you are authorized to use it and able to obtain a no-objection certificate from its owner.

DESCRIPTIVE component:
In Acz Research Pvt. Ltd., the term ‘research’ tells about the company’s business. Your name can not be ‘research’ if you are in logistics or restaurant business.

Check LLP name availability
Naming LLP is often a time-consuming process because the government has put together a complex process with many rules. It is fortunate for you that advocacy has created an easy-to-use tool to not only disturb you from searching for names.

FIND LLP NAME NOW

 

BASIC

all inclusive fees

Rs.7000
  • 2 Class 2 Digital Signature
  • 2 Designated Partner Identification Number (DPIN)
  • LLP Name Approval
  • LLP Deed Drafting
  • Incorporation Fees
  • 1 Lakh Capital
  • Incorporation Certificate
  • LLP Incorporation Kit
  • PAN & TAN
  • 50+ Document Formats
  • GST Registration
STANDARD

all inclusive fees

Rs.14000
  • 2 Class 2 Digital Signature
  • 2 Designated Partner Identification Number (DPIN)
  • LLP Name Approval
  • LLP Deed Drafting
  • Incorporation Fees
  • 1 Lakh Capital
  • Incorporation Certificate
  • LLP Incorporation Kit
  • PAN & TAN
  • 50+ Document Formats
  • GST Registration
  • Bookkeeping
  • Financial Statement
  • Preparation
  • Form 8 Filing
  • Form 11 Filing
  • LLP Income Tax Filing
PREMIUM

all inclusive fees

Rs.25000
  • 2 Class 2 Digital Signature
  • 2 Designated Partner Identification Number (DPIN)
  • LLP Name Approval
  • LLP Deed Drafting
  • Incorporation Fees
  • 1 Lakh Capital
  • Incorporation Certificate
  • LLP Incorporation Kit
  • PAN & TAN
  • 50+ Document Formats
  • GST Registration
  • Bookkeeping
  • Financial Statement Preparation
  • Form 8 Filing
  • Form 11 Filing
  • LLP Income Tax Filing
  • 12 GST Return Filing (GSTR-1 or 3B)
  • Udyog Aadhaar Registration
  • Trademark Filing

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How many people are required to include LLP?

To include a limited liability partnership, a minimum of two people are required. There should be minimum two partners in a limited liability partnership, and this can be the maximum number of participants.

What are the requirements for participating in LLP?

Named partners should be more than 18 years old and should be a natural person. There are no limitations in terms of citizenship or residence. Therefore, the LLP Act 2008 allows foreign nationals including foreign companies and LLP to include LLP in India, provided at least one nominated partner is resident of India.

What is the capital required to start a limited liability partnership?

You can start limited liability partnership with any amount of capital. There is no need to show proof of capital invested during the incorporation process. Contributing partner includes both tangible and / or intangible assets and LLPs can have other benefits.

Can LLP be included for "not-for-profit" activities?

No, one of the requirements to establish an LLP is to ‘take on a legitimate business in terms of profit’. Therefore, LLP can not be included for “not-for-profit” activities.

Is the office necessary to start a limited liability partnership?

In India, an address where the registered office of LLP will be located, is required. The premises can be a commercial/industrial/ residential where communication from MCA will be received.

Do I have to be present in person to include LLP?

No, you will not have to attend our office or be present in any office for the inclusion of limited liability partnership. All documents can be scanned and sent to our office via email. Some documents will also have to be delivered to our office.

Which documents are required to include LLP?

Identity proof and proof of address are mandatory for all the proposed designated partners of LLP. PAN card is compulsory for Indian citizens. Apart from this, the landlord of registered office premises will have to issue a no-objection certificate for having a registered office in their office and submit their identity proof and address proof.

How long will it take to incorporate LLP?

eMindsCA.com can include limited liability partnership in 14-20 days. The time required for incorporation will depend on the submission of documents related to the speed of the customer and government motives. To ensure prompt involvement, please choose a unique name for your LLP and make sure that you have all the necessary documents before starting the incorporation process.

Why do I need to include my LLP quickly?

To quickly add LLP, make sure the proposed name of the limited liability partnership is very unique. The names which are similar to an existing Private Limited Company / Limited Liability Partnership / Trademark can be rejected and additional time will be required for the revival of names.

How long is the inclusion of LLP valid?

Once the limited liability partnership is included, it will remain active and in existence until the annual compliance is completed regularly. In case, the annual compliance is not followed, the LLP will become inactive and probably withdraw from the register after a period of time.

What are annual compliance requirements for LLP?

LLP is required to make an annual filing with the registrar each year. However, if the business of LLP is less than Rs. 40 lakh and / or less than Rs. 25 lakhs is capital contribution, then the financial statements should not be accounted for.

What is a digital signature certificate?

A digital signature establishes the identity of the sender or signatory electronically while entering the documents through the Internet. Corporate Affairs Ministry (MCA) has ordered that partner participation with a digital signature for the named partner identification number. Therefore, a digital signature is required for all the designated partners of the proposed LLP.

What is the named Partner Identification Number (DPIN)?

The named partner identification number is a unique identification number assigned to all existing and proposed designated partners of an LLP. All present or proposed designated partners must have a specified partner identification number. The nominated partner identification number never ends, and a person may have only one nominated partner identification number.

Can NRI / foreign citizens be a nominated partner in an LLP?

Yes, after receiving an NRI or foreign national nominated partner identification number, there may be a nominated partner in the limited liability partnership. However, at least one named partner in LLP should be a Resident India.

Is Foreign Direct Investment (FDI) allowed in LLP?

Yes, foreign direct investment (FDI) in the LLP is allowed in the areas permitted by the Foreign Investment Promotion Board (FBB). However, foreign institutional investors (FLs) and foreign venture capital investor (FVCI) will not be allowed to invest in LLPs. LLP will not be allowed to avail the benefits of external commercial borrowing (ECB).

Can the existing partnership firm or company be converted into LLP?

Yes, the existing partnership firm or unlisted company can be converted into LLP. There are many advantages of changing the partnership firm to LLP; However, the same company does not apply to the conversion of LLP.

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