LLP Registration

Limited liability Partnership Registration


Entrepreneurs widely favour Limited Liability Partnerships (LLPs) due to their flexible structure, combining aspects of partnerships and single ownership. This model, introduced in India in 2008 under the Limited Liability Act, merges the advantages of both forms. LLPs require a minimum of two partners for incorporation, with at least two designated partners. At least one designated partner must be an Indian resident. The LLP agreement outlines the rights and responsibilities of these designated partners, who bear direct responsibility for adhering to all provisions of the LLP Act 2008.

Characteristics of LLP


  • LLPs entail fewer regulations and compliance burdens.
  • LLP formation costs are economical.
  • No minimum capital contribution is required for LLPs.
  • It enjoys a distinct legal identity.
  • LLPs have perpetual succession.
  • An LLP must have 'LLP' as part of its name.
  • Partners are recognized as agents within LLPs.
  • LLPs are adaptable entities.
  • The LLP agreement covers essential functions within an LLP.

Pre-requisites

  • At least two partners are necessary.
  • The proposed company needs a registered address.
  • The capital amount needs to be determined.
  • All designated partners must possess DSC.
  • All designated partners must acquire DIN.

Documents required For LLP Registration

If the intended director and shareholder are Indian citizens, these documents are required:

  • PAN card
  • Aadhaar card
  • Address proof like a bank statement, telephone bill, or mobile bill
  • Passport-sized photo

For foreign nationals acting as the proposed director or shareholder, these documents are necessary:

  • Passport copy
  • Address proof copy
  • Nationality proof copy
  • Two passport-sized photos

Register office documents.

  • If the office is leased, a rental agreement is necessary.
  • An electricity bill (recent, within two months) is required.
  • For rented spaces, an NOC (No Objection Certificate) from the landlord is needed to operate the business.

Procedure for registration

Step 1: Name Application

Submit a name application with the registrar of companies. Provide two name options, with an opportunity for one re-submission.

Step 2: Name approval/Rejection

The Central Registration Centre (CRC) reviews the application for approval or rejection.

Step 3: Application for DSC

Obtain Digital Signature Certificates (DSC) for all subscribers and Directors.

Step 4: Forms and Documents filing

File the LLP registration application with necessary documents and fees.

Step 5: Certificate of Incorporation

Once satisfied, the Registrar of Companies (ROC) issues the Certificate of Incorporation.

Step 6: File LLP Agreement

Submit the agreement in Form 3 via the online MCA portal within 30 days of registration. The LLP agreement must be printed on stamp paper, the value of which varies by state.

FAQ


The individual who signs the 'Incorporation document' during LLP incorporation becomes a partner. Additional partners can be appointed based on the terms in the LLP agreement.

In an LLP, partners can transfer their economic rights.

An LLP must maintain annual accounts. Every year, the LLP needs to file a 'Statement of Accounts and Solvency' in the prescribed format with the Registrar.

The Central government has the authority to appoint inspectors to investigate an LLP, following procedures outlined in the Act.

Section 60 and Section 62 of the Act outline the procedures for mergers and amalgamations.

As an LLP is a separate legal entity, the Companies Act of 1956 might be applicable to it.

Yes. A body corporate can become partner of LLP.

At least two partners are required, and there's no upper limit on the number of partners that can be involved.