INTRODUCTION
If you are looking for an LLP registration, then in this write up you will find all the answers to your queries related to relevant requirements for registration of LLP set up by the Registrar of Companies. Also find the step-by-step procedures for the registration of LLP along with necessary information relating to documents requirements, capital or Contribution requirements, requirements of minimum number of partners or designated partners, process for LLP name reservation, Payment of Stamp duty on LLP Agreement etc.
LLP REGISTRATION
Limited Liability Partnership or LLP is a hybrid of traditional partnership business and company form of business entity. It combines the features and benefits of both the entities. It is governed by the provisions of Limited Liability Partnership Act, 2008. Registrar of companies(Central Registration Centre) is the regulatory body for LLP or Limited Liability Partnership. Ministry of Corporate Affairs or MCA is the Ministry of government which is the governing Ministry of LLP.
LLP registration is a boon for small and medium size business entities and is full of benefits of traditional form of partnership and company form of business entity.
ADVANTAGES OR BENEFITS OF LLP REGISTRATION
It has got the structure of that of Private Limited Company and is inspired by the traditional form of business entity, it is easier to set up and involves lesser legal compliances. Therefore, it is simple to start and maintain its day to day operations.
Among other advantages or benefits of Limited Liability Partnership (LLP), here is the list of few Advantages highlighted for the purpose:
- Lesser cost of incorporation: as compared to other form of businesses such as Company form of business registration such as private limited company registration and public Limited company registration LLP registration involves lesser cost of incorporation reason being LLP form fees is less comparatively to Incorporation of Company cost at MCA.
- No minimum capital requirements: For the registration of LLP there is no requirements of Minimum capital which is to be contributed for the purpose of registration of LLP.
- No limit on number of partners or designated partners: for the registration of LLP there is requirement of Minimum 2 partners and out of them minimum 2 designated partners. However, it is to be noted that there is no limit on maximum number of partners.
- Tax Audit requirements: Unlike companies where there is mandatory requirement of tax audit irrespective of capital of the company ad turnover of the company. The requirement of tax audit in case of LLP arises only when the capital of LLP reaches at 25 Lakh rupees or turnover of the LLP reaches at 40 Lakhs.
- Lower annual compliances: Unlike companies LLP registration involves lesser legal compliance requirements related to Income Tax Act, LLP Act, 2008, GST Act etc.
- Limited Liability: it is the most important feature of LLP which makes it stand apart from traditional partnership. It is form of partnership with the liability of its partners Limited to the extent of capital contribution undertaken by them irrespective of the debts on the LLP and money requirements of LLP.
DOCUMENTS REQUIREMENTS OF LLP REGISTRATION
- Self-attested copy of PAN card of all partners including Designated Partners/DP;
- Passport size photograph of partners/DP (Colour);
- Identity proofs of partners such as Driving License, voter ID, etc.;
- Residential address proofs of the partners/DP such as utility bills and bank statement (it is to be noted that these proofs should not be older then 2 months);
- Digital signature certificates of the partners/DP;
- Details related to educational qualification and place of birth of partners.
- E-mail ID and phone number of partners/DP;
- Details of Ratio of capital contribution by each partners/DP;
- Utility bill or rent agreement or NOC from the owner, as the proof for registered office of the LLP.
REQUIREMENTS FOR LLP REGISTRATION IN INDIA:
- Minimum 2 persons to be registered as the partners of LLP;
- Minimum 2 designated partners of the LLP;
(Both Partner or Designated Partners can be same person)
- DPIN is a must in case of Designated Partners;
- Details related to the capital contribution of the by each partners;
- Business activity code of LLP;
- Details related to registered office of LLP;
FORMS FOR REGISTRATION OF LLP IN INDIA
- LLP RUN form : It is for reservation of name of LLP.
- FILLIP form: This form is used for incorporation of LLP along with other attachments to the form.
PROCEDURE FOR REGISTRATION OF LLP
The stepwise procedure for registration of LLP are as follows:
- Searching the name availability for the proposed LLP, on MCA and trademark portal and preparation of name search report. It is the preliminary and the most important step of incorporation to the effect that the only on approval of proposed name of LLP entire incorporation procedure depends. (name shall be valid for a period of 3 months from the date of issue of Name approval letter);
- Obtaining the documents of the promoters of the LLP and related to the registered office of the LLP (List is mentioned above);
- After that you can proceed with the preparation of FILLIP form for incorporation of LLP and other documents which are required to be attached there to;
- Filing of Incorporation form FILLIP at MCA after login Service and it is a web-based form.
- Payment of MCA filing fees and stamp duty payment state wise applicability.
- Obtaining certificate of Incorporation of LLP.
FAQs on LLP registration in India
- What is DPIN or DIN of a person?
Ans. DPIN or DIN is a unique identification number consist of 8 digits which is assigned to every person which is to be appointed as the director of the company or Designated partners of LLP.
As per Rule 10(1) of Limited Liability Partnership Rules 2009, to obtain DIN or DPIN, application is to be filed in form DIR-3 under section 153 of Companies Act, 2013.
It is to be noted no person shall be allotted more then one DIN or DPIN, and it is valid for the lifetime of the person unless and until it has been surrendered or deactivated.
- What is digital signature certificate of a person?
Ans. Digital Signature certificate or DSC in short is the electronic signature of a person which are used for signing the forms and documents to be signed electronically.
- How long does it take for registration of LLP?
Ans. Depending upon the other aspects such as the availability of documents on time and resubmissions it takes around 10 to 15 days to register an LLP.
- What is the difference between Partner and designated partner?
Ans. Partners of the LLP are like members in the company including Private Limited company. Out of them some partners (individuals) are selected as the designated partners of LLP which are on same footing as that of the directors of the company and are fully responsible for the management of LLP.
- How many persons are required to be register an LLP?
Ans. To register an LLP minimum 2 persons are required which are to be appointed as partners out of them minimum 2 persons shall be appointed as the designated partners.
Thank you for giving your valuable time for reading this write -up, hope it helps, if still you have any queries regirding the Company Registration of LLP in India then you can connect to our team of experts at info@ccoffice.in or call us at 9988424211 and we will be happy to assist you to have your own start up in the form of LLP.
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