LLP Registration
Starting from ₹3,000 + GST
;
Table Of Content
What is LLP Registration
The idea of Limited Liability Partnerships (LLPs) came into being in India in 2008 and is regulated by the Limited Liability Partnership Act of 2008. The business structure of LPPs is unique and combines the features of a company and a partnership firm. This brings the benefits of the traditional partnership with limited liability of a company. The LLP Act of 2008 is the framework that governs limited liability partnerships in the country’s business environment.
LLP registration is a mandatory practice in India. It is one of the crucial steps for the incorporation of the LLP. The registration makes the LLP a separate legal entity from the partners. It offers limited liability protection to the partners, which means the partners are only liable for the amount of money they contribute as their investment. Registering the LLP allows the business to have a formal and professional image that can increase credibility and trust.
Benefits of LLP Registration
Eligibility for LLP Registration
Process for LLP Registration
Step 1
Obtain a Digital Signature Certificate or DSC before the LLP registration process from a certifying company recognized by the government. It is mandatory for all the partners of the LLP to have a digital signature certificate to sign digital documents online as a stamp of authentication.
Step 2
Obtain a Designated Partner Identification Number (DPIN) for the designated partners of the LLP. You can apply to the Ministry of Corporate Affairs or the Registrar of Companies and fill a FORM-DIR 3 with a copy of the necessary documents signed by a Company Secretary, Chartered Accountant, or Cost Accountant.
Step 3
You need to file a RUN-LLP or Reserve Unique Name-Limited Liability Partnership to reserve a name for the LLP, which is an important step in the registration process. The name must be within the guidelines of the Ministry of Corporate Affairs. Submit the name reservation application form with two names of your choice on the MCA website.
Step 4
File a FiLLiP or Form for incorporation of Limited Liability Partnership on the MCA portal with the necessary information digitally. The form requires basic details about the partners of the LLP, registered office, and so on. After the Registrar of Companies has approved the form, the Certificate of Incorporation will be issued within 7 to 12 business days, which is an official indication of the LLP incorporation and existence.
Step 5
After the Certificate of Incorporation has been issued and the incorporation of the LLP, Form 3 has to be filed on the MCA website. The form has to be filed within 30 days of the incorporation of the LLP. The form includes the LLP agreement with various details regarding the partners – their duties, rights, contributions, and the partnership.
Documents Required for LLP Registration
Additional requirements for foreign nationals/NRIs:
FAQs
What is an LLP agreement?
An LLP agreement is a written document that is a legally binding contract between the individual partners of a Limited Liability Partnership firm. It includes the rights, duties, and responsibilities of the partners of the LLP, profit sharing ratio, admission of new partners, remuneration, and so on.
How many partners are required for an LLP?
A minimum of two designated partners are required to form a Limited Liability Partnership. There is no upper limit on the maximum number of partners in such a partnership.
Can the LLP registration be done online?
Yes. You can complete the registration of the LLP online on the MCA website by filling in the required forms and uploading relevant documents. It makes the process much more accessible, streamlined, and quicker.
What is the purpose of a DPIN?
A DPIN, known as the Designated Partner Identification Number is a unique number that indicates the legal status of the designated partner. It serves as a form of identification that is allocated by the Ministry of Corporate Affairs.
What documents can be submitted as Address Proof for partners?
The documents you can submit as Address Proof of Partners of partners include voter’s ID, passport, Aadhar card, and utility bills — telephone bill, electricity bill, etc. that are not more than 2 months old.
What are the rules for the name of an LLP?
The proposed name for the LLP must be unique and must not be similar to an existing LLP, company, etc. The availability of the desired name for the LLP can be checked by searching on the MCA website. The chosen name must also convey the core activities of the LLP.
Can foreign nationals and NRIs become partners in Indian LLPs?
Yes, foreign nationals and NRIs can become partners in LLPs in India. The individual has to provide the necessary documents from the authorities and comply with the regulations to participate in a LLP partnership in India.