What is an LLP? / LLP Formation
A Limited Liability Partnership (LLP) is a partnership in which the partner grants limited liability, much like shareholders in a company. Limited liability protects partners from legal claims against the business while benefiting from the flexibility and simplicity of a partnership. LLPs have their own legal identities, which means they can take legal actions and be subject to legal actions independently.
LLP Company Registration Eligibility Conditions
Looking for LLP company registration in India? It’s great to have you here! To qualify for LLP registration, you must meet a few criteria. Let’s check them out together!
Minimum of two partners:
Limited Liability Partnerships are formed in India with at least two partners, and there is no maximum number of partners.
Designated Partners:
Within the partnership framework, there must be at least two natural individuals chosen as partners. It is also necessary for one of these partners to maintain residency in India.
Nomination for Body Corporate Partner:
Corporations must appoint a natural person as their agent if they act as partners.
Agreed Contribution:
The shared capital of the LLP must be contributed by each partner by its agreement.
Minimum Authorized Capital:
At least Rs.1 lakh in authorized capital is required of the LLP.
Indian Resident Designated Partner:
LLPs must at least have one Indian resident designated partner.
Procedure For LLP Registration Online
There are several key steps involved in incorporating an LLP. To incorporate your LLP, here is a comprehensive guide:
Obtain a Digital Signature Certificate (DSC)
Now, digital signatures play an important role, hence, a Digital Signature Certificate (DSC) is necessary for government filings.
Get Director Identification Number (DIN)
To become a partner, you must obtain a DIN. In LLPs, directors and designated partners are assigned a unique identification number called the Director Identification Number (DIN).
Choose a Name for the LLP
Make sure your LLP name is unique and suitable, and that it adheres to the guidelines provided by the Ministry of Corporate Affairs.
Form for Incorporation of LLP (FiLLiP)
On this form, we collect vital information about the proposed Limited Liability Partnership, the partners, the Limited Liability Partnership agreement, and the registered address. As part of this agreement, partners consent to act as designated partners and to comply with all LLP regulations.
Draft LLP Agreement
Describe partner responsibilities, rights, and obligations in the LLP Agreement. As soon as the company is incorporated, it must file this agreement with the Ministry of Corporate Affairs and be notarized.
Obtain a Certificate of Incorporation
Upon filing and verification of forms and documents, the Registrar of Companies (RoC) will issue a Certificate of Incorporation recognizing the existence of the LLP.
Apply for a PAN and TAN
The LLP should apply for a Permanent Account Number (PAN) and Tax Identification Number (TAN) after obtaining its Certificate of Incorporation.
By following these steps diligently, you can register your LLP and start your entrepreneurial venture successfully.
Advantages of Limited Liability Partnership
Listed below are the advantages of a Limited Liability Partnership (LLP):
Personal Legal Identity:
A limited liability partnership has its own identity, just like a large corporation. Having the ability to do legal things on its own helps it gain trust and trust from people.
Less Risk for Partners:
An LLP partner is only responsible for what he or she contributes. Their reputation is better because they don’t have to pay for all of the losses or debts.
Saves money and time:
In comparison to big companies, setting up an LLP is cheaper and has fewer restrictions. Every year, there are fewer paperwork tasks to complete.
No Fixed Money Needed:
A limited liability company doesn’t require much money to get started. There is no limit to how much partners can contribute.
Checklist for LLP Registration
The number of partners must be at least two.
Every designated partner should have a DSC.
Each designated partner should have a DPIN.
LLP name that is not similar to LLPs or trademarks already in use.
Contribution by LLP partners to capital.
Partner agreement for LLPs.
A certified copy of the LLP's registered office.
LLP Registration Costs
With the help of Legal Vistaar Consultants, you can register your limited liability partnership online.
Cost of LLP registration
A maximum of Rs.1 lakh can be contributed by designated partners in government fees LLP Deeds require stamp duty up to Rs. 2000/- and notarization in every state in India. There may be a difference in the price shown above.
Time Involved in LLP Registration
The formation of an LLP starts with the obtaining of a DSC and ends with the filing of Form 3, subject to the respective department’s approval and revert.
Legal Vistaar Consultants – Get Effortless LLP Registration
With Legal Vistaar Consultants, you are in good hands throughout the entire LLP registration process. The LLP Registration includes the following services:
Deed of Limited Liability Partnership
Numbers designating two partners as designated partners
Certificates for two digital signatures
Certificate of incorporation
Providing comprehensive legal assistance for the formation of Limited Liability Partnerships is one of our specialties at Legal Vistaar Consultants. Our team of lawyers covers everything from documentation to incorporation and compliance.
For any questions you may have, our customer service department is available 24/7.
Documents Required for LLP Registration
PAN card of the owner
Aadhaar Card of the owner
Photograph of the owner
Electricity bill of the premises
Letter of Authorisation for signatory
Bank statement/ Cancelled Cheque
Aadhaar Card of owners/ directors/ partners
