Overview
A Limited Liability Partnership (LLP) is a modern and advantageous business structure that combines the strengths of traditional partnerships with the security of limited liability. This versatile platform allows entrepreneurs to collaborate and innovate with confidence, knowing that their personal assets are protected. LLPs offer the flexibility and collaborative dynamics of partnerships, while also providing a safeguard against personal financial risk, making it an ideal choice for contemporary business ventures.
Registering your Limited Liability Partnership (LLP) in India is simple and efficient with Praman Advisors. Trusted by numerous businesses, we provide comprehensive support to ensure your LLP registration complies with all legal requirements. Our team of experts will guide you through every step of the online registration process, offering the fastest and most cost-effective solution for setting up your LLP. Contact us today to begin your journey towards a successful business future with hassle-free LLP registration online.
Registration Prerequisites and Eligibility Conditions
To qualify for LLP registration in India, the following criteria must be met:
- Minimum of Two Partners: A Limited Liability Partnership (LLP) in India requires at least two partners, with no limit on the maximum number of partners.
- Designated Partners: The LLP must have at least two designated partners who are natural persons. Among these, at least one must be a resident of India.
- Nomination for Body Corporate Partner: If a body corporate acts as a partner, a natural person must be nominated to represent it.
- Agreed Contribution: Each partner is required to contribute to the capital of the LLP as mutually agreed upon.
- Minimum Authorized Capital: The LLP must have a minimum authorized capital of Rs. 1 lakh.
- Indian Resident Designated Partner: At least one designated partner must hold resident status in India.
Advantages
A Limited Liability Partnership (LLP) offers several key advantages:
- Separate Legal Entity: An LLP has its own legal identity, similar to a corporation. This distinction enables the LLP to engage in legal activities independently, which enhances trust and credibility with clients and business partners.
- Limited Liability for Partners: Partners in an LLP are liable only to the extent of their agreed contributions. This limited liability protection ensures that personal assets are safeguarded against the LLP’s debts and obligations.
- Cost-Effective and Efficient: Establishing an LLP is generally more cost-effective than forming a corporation, with fewer regulatory requirements and reduced annual compliance paperwork, making it an efficient option for business formation.
- No Minimum Capital Requirement: There is no mandatory minimum capital requirement for starting an LLP. Partners have the flexibility to contribute any amount of capital, making it an accessible option for businesses of various sizes.
Documents Required for LLP Registration
To initiate the LLP registration process, partners must provide the following documents:
- PAN Card/ID Proof of Partners: Each partner must submit a copy of their PAN card or any other valid ID proof such as Voter's ID, Passport, Driver's License, or Aadhar Card.
- Address Proof of Partners: Partners need to provide proof of their current address. Acceptable documents include a recent bank statement, telephone bill, mobile bill, electricity bill, or gas bill from the last 2-3 months.
- Residence Proof of Partners: Partners should furnish a recent proof of residence, which may include a bank statement, telephone bill, mobile bill, electricity bill, or gas bill from the last 2-3 months.
- Passport-size Photograph: Each partner must submit a passport-size photograph with a white background.
- For Foreign Nationals and NRIs: Foreign nationals and NRIs who wish to partner in an Indian LLP must submit a copy of their passport. Additionally, they need to provide address proof such as a driving license, bank statement, residence card, or any government-issued identity document containing the address.
- Proof of Registered Office Address: If the LLP's registered office is rented, partners must provide the landlord’s rent agreement and a no-objection certificate (NOC). Additionally, a recent utility bill (gas, electricity, or telephone) showing the complete address and owner’s name (dated within the last two months) should be submitted.
- Digital Signature Certificate (DSC): At least one designated partner must obtain a Digital Signature Certificate (DSC) for digitally signing the registration documents.
Procedure for LLP Registration
Follow these key steps for online LLP registration:
- Obtain a Digital Signature Certificate (DSC): All proposed partners must secure a DSC, as all government filings require digital signatures.
- Obtain Director Identification Number (DIN): Partners without a DIN must apply for one. The DIN is a unique identifier for individuals becoming directors or designated partners in LLPs.
- Choose a Name for the LLP: Select a unique and compliant name for your LLP, following the Ministry of Corporate Affairs guidelines.
- File the Form for Incorporation of LLP (FiLLiP): Submit the FiLLiP form, which includes details about the LLP, partners, agreement, and registered office address, along with a declaration from partners.
- Draft the LLP Agreement: Prepare the LLP Agreement outlining the rights, duties, and obligations of partners. The agreement must be notarized and filed with the Ministry of Corporate Affairs within 30 days of incorporation.
- Obtain a Certificate of Incorporation: Once all documents are verified, the Registrar of Companies (RoC) will issue the Certificate of Incorporation, officially establishing the LLP.
- Apply for PAN and TAN: After incorporation, apply for the LLP's Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).
