How To Register LLP Company In India

If you are planning to set up a Limited Liability Partnership or LLP in India, you will find all the relevant requirements laid down by the Registrar of Companies. You can also find the step-by-step registration process for Limited Liability Partnerships (LLPs) in India along with information on fees, documents, capital requirements, minimum partner requirements, name registration process, etc.

 The Limited Liability Partnership or more commonly known as LLP is a boon for micro or small businesses where one partner does not wish to be liable for another’s mistakes and misconducts. In addition, the LLP protects its owners from debts by providing ‘limited liability protection’ to its partners. A group of new business professionals or joint family businesses will benefit from this business structure, which is becoming more popular.

What are the legal procedures for registering as an LLC?

Under the new MCA procedure for LLP registration, a new form is available for LLP incorporation called FiLLiP (Form for Incorporation of Limited Liability Partnership), which must be filed with the MCA CRC. In the past, every state would register LLP online in its jurisdiction.
FiLLiP includes-

  • DPIN allocation application;
  • Reservation of LLP’s name;
  • Completing other required documents.

Our Compliance Calendars are ranked as India’s Most Trusted Compliance Platform. Do not let your dream of becoming an entrepreneur be stymied on the way to success. Book a free consultation today at Compliance Calendar LLP.

The features and benefits of LLP registration

With so many features and benefits, LLPs are an ever-growing business form, especially in the service industry. We have seen big corporates moving towards LLPs since 2008 when it was introduced in India. Small and medium-sized businesses find LLPs very appropriate because they save money on compliance costs.

Liability Limitation

LLP registration offers the advantage that the personal property of the partners will remain safe and secure, as well as the liability of the person who invests money in the business, will be limited to the amount invested by them. In a normal partnership firm, this feature is not available. As a result of this limited liability, young entrepreneurs develop their confidence to become business entities registered with the Ministry of Corporate Affairs.

The legal entity of its own

With the separate legal entity feature, LLP gives you the option of keeping yourself and LLP at length, recognizing both identities as separate entities. It is LLP’s responsibility to sue and be sued on its own behalf without mentioning the name of its partners/designated partners, as LLP and its Representatives are different personalities.

Permanent Succession

An LLP continues to exist until it is formally closed by the Partners or the ROC. As compared to partnership firms where the partnership firm ceases to exist on the death of its partners, registered LLPs do not cease to exist on the death of all partners or designated partners.

Limited Liability Partnership (LLP) formation in India has many advantages why should you go with a Limited Liability Partnership (LLP) registration in India when you have options like private limited companies, public limited companies, or partnerships? It is easier to set up and requires less compliance and is easier to run on a daily basis. There are various

Benefits of incorporating a Limited Liability Partnership (LLP) in India.

Registration of Limited Liability Partnerships in India: documents needed

 The following list of documents is necessary for LLP registration:

  • Copy of all the partners’ PAN cards
  • Photographs the size of passports of all the partners.
  • Proof of registered office space can be provided by utility bills, telephone bills, or the latest bank statement.

In the case of an owned property, the sale deed or property deed must be included.

  • A letter of authorization from the owner of the property.
  • A copy of the lease.
  • A NOC from the landlord will be provided to us in the appropriate format.
  • A duly certified copy of the partners’ passports, if they are NRIs/foreign citizens.
  • Certificates of Digital Signatures. 

Procedure for Registration of Limited Liability Partnerships (LLPs) in India

 LLPs must meet several eligibility criteria before they can register. These include:

  •  At least two of the partners must be 18 years or older.
  • There should be at least one Indian resident in the partnership.
  • The DINs and DPINs of all the designated partners.

Frequently Asked Questions

What is an LLP agreement?

An agreement to form an LLP is an agreement that is executed by all partners after the incorporation of the LLP in India. It outlines the rights, roles, duties, and responsibilities of partners in the LLP, as well as other clauses related to business. A company must file an agreement within 30 days of possessing a certificate of incorporation, or it will be fined Rs. 100 per day until the date of filing.

How does LLP work?

LLPs must be a separate legal entity from their partners. They must also have perpetual succession.

LLP forms of business have what advantages?

An LLP is a business model in which:

(i) is organized and operates according to an agreement.As a result
(ii) offers flexibility without imposing extensive legal or procedural requirements
(iii) enables professional and technical expertise and initiative to be combined with financial risk-taking capability in an efficient and innovative manner

Differences between “LLP” and “Traditional Partnership firm”

(i) In a traditional partnership firm, every partner is liable jointly with the others and also severally for any and all acts committed by the firm while the partner is a partner.

The liability of the partner is limited to the amount he agreed to contribute under the LLP structure. Moreover, no partner is held liable for the independent or unauthorized acts of other partners, so individual partners are protected against joint liability caused by the misconduct or wrongful acts of another partner.

Leave a Reply

Your email address will not be published.