Limited Liability Partnership (LLP) registration is a popular choice for startups and small businesses, blending the features of a partnership and a private company. One key advantage is that LLPs require no minimum capital, making them accessible to new entrepreneurs. The process begins with selecting a unique business name, which is checked for availability using the RUN-LLP service on the Ministry of Corporate Affairs (MCA) portal.
Checklist for Registering a Limited Liability Partnership Company in India
In order for any Limited Liability Partnership(LLP) to be registered in India, the below conditions have to be met.
Two Directors
A Limited Liability Partnership(LLP) must have at least two Designated Partner and more, there can be 15. Of the directors in the business, at least one must be an occupant of India.
Unique Name
The name of your business must be Unique. The recommended name should not match any current organizations or trademarks in India.
Minimum Capital Contribution
There is no Minimum capital Contribution to a company.
Registered Office
The registered office of an organization doesn’t need to be a business space. Indeed, even a leased home can be the registered office.
Required Documents for Limited Liability Partnership Registration
For company registration in India the applicant should provide director and shareholder documents along with the proof of registered office address. Here is a list of the required documents for company incorporation:
- Passport size photos of directors and shareholders
- PAN card of all the directors
- Aadhar, Driving Licence, Passport or Voter ID of the directors
- Proof of residence
- NOC of the registered office address
- Utility bills for registered office proof
- Memorandum of Association (MOA)
- Articles of Association (AOA)
- Director and Shareholder Details
- Digital Signature Certificate (DSC)
- Designated Partner Identification Number (DPIN)
Steps for Limited Liability Partnership Registration Process
LLP registration procedure is easy but a professional would be needed to complete the same. In addition, the procedure has been completely changed by the government in order to promote the ease of doing business.
- Apply Digital Signature Certificate
The first step of the LLP Registration process is to apply for a Digital Signature Certificate to the designated partners of the proposed LLP. This is one of the important steps as the registration process of LLP is done online and requires the forms to be digitally signed. - Check for LLP’s Name availability
Before the process of registering LLP. We will ask you for a few names of your choices. We need to check the availability of the name to make sure it’s already not taken. Names can be checked on the MCA portal. This is done in order to avoid rejections. - Name Approval and Reservation
Name Approval or Name Reservation is the method of reserving a unique name via RUN (Reserve Unique Name) submission form. A list of two proposed names of the LLP will be submitted to the authority for approval. The ROC reserves a name out of two names, and the LLP registers with the same name. The Registrar will approve the name only if it is not considered undesirable by the Central Government. Nor name should not relate in any way to any of the existing partnerships, LLPs, trademarks or corporate entities. - MOA & AOA Submission
Once the name has been approved, it is necessary to draft up a Memorandum of Association and Articles of Association. Both MOA and AOA are registered with the declaration of agreement of the MCA. - Get Incorporation Certificate of LLP
When the Registrar approves your MOA and AOA, you ‘re closer to having your LLP licensed. The next step is to obtain an LLP Incorporation Certificate. You can do this by submitting all the documents to the Registrar. The time frame is between 2 and 12 days. Once you have your LLP Incorporation Certificate, you ‘re ready to go. - LLP Agreement
The LLP agreement is very important in the context of a limited liability partnership, as it lays down mutual rights and obligations between the partners and between the LLP and the partners. The partners enter into the LLP agreement on the registration of the LLP by filing form 3 online on the MCA portal. This process must be carried out within 30 days of the date of incorporation.
Highlights of Incorporating a Company in India
The process is governed by the Ministry of Corporate Affairs (MCA) and involves registering business with the Registrar of Companies (RoC), along with obtaining a Digital Signature Certificate (DSC) and Designated Partner Identification Number (DPIN).
- Limited Liability
Shareholder enjoys limited liability to the extent of capital invested. Shareholder’s personal assets protected in the event of the company’s insolvency. - Separation Of Mangement & Shareholders
Management & shareholders can be separated. A shareholder can invest the fund in fruitful business without managing & Management can operate their business without frequent interruption of investors. - Separate Legal Entity
A company is a Separate legal entity from its Owners and Management in the eyes of law. - Perpetual Succession
A business of the Company will not affect if there is any change in the ownership of the company. - Asy Equity Funding
Startups businesses can easily raise funds from investors on an equity basis. - Taxation
Every Pvt Ltd Company enjoys for recently announced start-up tax exemption, if meets eligibility criteria.
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FAQs on Limited Liability Partnership
To simplify the process, we’ve addressed some of the most frequently asked questions about registering a Limited Liability Partnership (LLP). These FAQs provide clear insights into each step, empowering you to move forward with confidence. Read on to discover the answers and take the first step toward starting your business journey.
The LLP represents a Limited Liability Partnership it is a superior version of a general partnership firm. It is governed by a limited liability partnership act 2008.
A Limited Liability Partnership(LLP) must have at least two Designated Partner and more.
The Designated Partners should be more than 18 years old and must be a natural individual. There are no limitations as far as citizenship or residency. Along these lines, the LLP Act 2008 permits Foreign Nationals including Foreign Companies and LLPs to consolidate an LLP in India, provided least one of the director should be resident of India.
There is no Minimum capital Contribution to a company. A Limited Liability Partnership(LLP) should have an authorized capital of in any event Rs. 1 lakh
Yes, NRIs or foreigners can be a director or a partner of LLP. However, foreign participation above 50% will place the company under the category of Foreign Company
Yes, a salaried individual can turn into the director in private limited, LLP or OPC private restricted organization. One needs to check the work understanding if that takes into account such arrangements. In a lot of cases, the businesses are very OK with the way that their representative is a chief in another organization.
There is no validity for Limited Liability Partnership(LLP) Registration Certificate, it is for a lifetime.
Indeed, one can maintain multiple businesses under one name LLP.
Types of Company Registration
Under the Companies Act of 2013 different types of business entities can be registered. Each and every business entity has its own set of benefits and drawbacks. Here is a complete outline of different business entities and their corresponding information.
| Private Limited Company | One Person Company | Limited Liability Partnership | Partnership Firm | Proprietorship Firm | |
|---|---|---|---|---|---|
| Recommended For | Start-ups and growing companies | Sole promoters | Professional services firms | Home businesses | Small traders and manufacturers |
| Ease of Accommodating Investment | Very easy to accommodate | Possible, but severely unlikely | Possible, but unlikely | Almost impossible | Impossible |
| Limited Liability Protection | Yes | Yes | Yes | No | No |
| Tax Advantages | Few benefits | Few benefits | Few benefits | Minimal | Most efficient |
| Perpetual Existence | Yes | Yes | No | No | No |
| Statutory Compliances | High | High | Minimal | Low | Low |