LIMITED LIABILITY PARTNERSHIP (LLP) REGISTRATION

LIMITED LIABILITY PARTNERSHIP (LLP) REGISTRATION

LLP is that form of alternative corporate business which gives the advantage of flexibility of a partnership & limited liability of a company too. Nowadays, LLP becomes the favourite choice of organization among entrepreneurs in India. In other words, an LLP is that type of partnership firm in which minimum 2 members establish the firm by entering into an LLP agreement.

IMPORTANCE OF LLP REGISTRATION

Let’s discuss about the importance of LLP registration, the concept of an LLP is that among all the partners, nobody is responsible for the misconduct of the other. LLP also provides the protection of limited liability against the LLPs debts for the owners. Along this, it also provides the ability to manage the company to the partners of LLP.

ESSENTIAL REQUIREMENTS TO START AN LLP

There are some requirements for starting an LLP :-

Minimum two people :- There are only two people are required for the registration of LLP. Although, there is no maximum limit of partners is present in case of LLP.

No maximum capital :- In LLP, the amount of capital is depends upon the need of the business and contribution of partnership.

PAN :- Among all the partners, one should have a PAN allotted by the IT Department. Besides this, atleast one partner should be resident in India.

The agreement of an LLP is required to be filed with the registration in eForm-3 under 30 days of incorporation of LLP..

STEPS TO REGISTER AN LLP IN INDIA

i) Obtain DSC and DIN of partners :-

The very first step for getting registered as LLP is to obtain the DSC (Digital Signature Certificate) of all the partners of LLP. The reason behind this, is that all the process related to the submission of forms will be done in online medium and that’s why the digital signature of directors is required. Along this, there is one more requirement which is that all the directors have to file for a DIN number. The application has to made in Form DIR-3.

ii) Application for name approval :-

This process includes registering the LLP. Before this, you must need to check out the name, whether it is already taken by someone or not. In this, MCA portal can help you. Because, the registrar only grant those names for LLP which are not taken before by someone. The name will approved by the registrar only if government does not take it as undesirable. Besides this, the name of the LLP should also not have any similarities to any of the existing LLPs, trademarks, partnership firms or body corporate.

iv) LLP Agreement :-

It determines the mutual rights and duties between the LLP & the partners, also amongst the partners. All the partners of LLP, enters into the LLP agreement upon the registration of LLP by filing Form-3 online on the MCA portal. This procedure should be done under 30 days of the date of incorporation.

v) Apply for PAN & TAN AND Bank Account :-

After all the above process, apply for LLP PAN & TAN with the NSDL. It will take around one day.

DOCUMENTS REQUIRED FOR LLP REGISTRATION

PAN Card :-

PAN Card of partners. In case of foreign partners, a valid passport is required.

Photograph :-

Latest Passport size photograph of Partners.

Identity Proof :-

Aadhar card and voter ID/Passport/Driving Licence of Partners.

Partner’s Address Proof :-

Latest Electricity Bill/Telephone Bill/Bank Account Statement of partners.

Business Address Proof :-

Latest Electricity Bill/Telephone Bill of the registered office address.

Note :- In case of NRI or Foreign National, documents of partners must be notarized or certified.