LLP Registration Online in India

What is LLP Registration?

LLP stands for Limited Liability Partnership and it is governed by the Limited Liability Partnership Act, 2008. To the partners it has limited liability. Two partners are involved in case of LLP; among the two, one must be a resident of India, having stayed for about 182 days in India, and there is no minimum limit of capital investment. LLP is often used for small business types in India. LLP does not raise money from the general public as the nature of LLP does not allow issuing equity shares. One can register as LLP through us in very less time and with very easy steps of processing.

One of the biggest advantages of LLP form of business over a Pvt Ltd Company is that there is less compliance requirement in comparison to a company.

Checklist for LLP Registration

• Minimum two partners of LLP (mandatory): A minimum of two persons are required for the registration of the Limited Liability Partnership (LLP) to act as the designated partners. There is no limit on the maximum number of partners in the LLP.
• One partner of the LLP must be a permanent resident of India (One Resident Designated Partner). A person is considered a resident of India if he/she stays in India for over 182 days during the previous financial year.
• Address proof must be registered: An address is required to incorporate an LLP. The address proof required is a utility bill not older than 2 months and the NOC from the owner of the registered address. If the address is in the name of self, the requirement will be utility bills and the Aadhar card on which the genuine address is mentioned.
• Capital Requirement: The LLP Act 2008 does not mention any minimum or maximum capital; hence the capital/contribution of the LLP will depend completely on the business requirements.
• Individual/unique and new name of the proposed LLP: The name of the proposed LLP must be unique and of individual identity, not similar to other names, and must be eligible. The name must not match any already existing LLP, Company, or Trademark. We are here to help you decide a unique name for your LLP.

List of Documents Required for LLP Registration

Genuine documentation for the registration of an LLP plays a very important role and results in faster incorporation of the Limited Liability Partnership firm. Valid documents after self-attestation must be submitted.

A. Document of Designated Partner & Partner

B. Document Required for Registered Address

C. Legal Forms and Declaration

Note: After the incorporation, the ROC issues a Certificate of Incorporation that contains the company's address, which is available on the proof submitted for the registered address. Please ensure that the address of the premises on the NOC matches the address on the utility bill.

Process of LLP Registration

Step 1: Requirement of Document & Information for LLP Registration

The procedure for the registration of LLP starts with the documentation of the proposed designated partners/partners and the related registered address of the LLP. The documents submitted must be correct and free from any discrepancy.

Step 2: Selecting the Name for LLP

The name of the LLP must not duplicate or be similar to some other LLP, Company, or Trademark — if found so, the name will be automatically rejected. The name should be cross-checked with the ROC and the Trademark Registry to avoid any infringement of existing Company or Trademark names.

Step 3: Making of DSC for Partners

DSC is known as the physical or paper signature under the Information Technology (IT) Act. For LLP registration, a digital signature in digital format is required, signed by the designated partner of the LLP. The filing process starts with the issue of a digital signature for all the partners of the LLP.

Step 4: Approval of Name for LLP Registration

The application for name approval for LLP is submitted in FORM RUN-LLP.

Step 5: ROC Filing for LLP Incorporation

The application of new LLP Registration is filed in FILIP Form immediately after name approval. The partners' KYC documents and proof of registered address are submitted along with the application form. The Form FILIP is attested by a practising Chartered Accountant, Company Secretary, Cost Accountant, or an Advocate practising at High Court. The government filing fee depends on the proposed capital/contribution of the LLP.

Step 6: Issue of the Certificate for LLP Registration

After all the above processes are complete, the final step is the issuing of the certificate for LLP registration after verification. The issuance of the LLP registration certificate is conclusive proof of LLP registration by ROC.

Step 7: LLP Agreement Drafting and ROC Filing

Post-registration of the LLP, the partners need to enter into a valid agreement on stamp paper of appropriate value as per the respective state. The LLP agreement defines the mutual rights and duties of the partners and should be signed before a notary public. The duly signed and Notary Attested LLP Agreement is then filed with ROC in Form-3 within 30 days of LLP Incorporation.

Step 8: PAN Card and TAN Card Number for the LLP

The LLP needs to apply in the prescribed Form 49A to the Income Tax Department for the allotment of PAN; the acknowledgement of the PAN application for the LLP is received on the same day, while the allotment of PAN is within a week. TAN number is a permanent number assigned to businesses for complying with withholding tax provisions (TDS). You are required to deduct TDS while making payments; hence, obtaining a TAN number is mandatory to submit TDS Returns. LLP needs both PAN and TAN numbers for registration.

Post-Incorporation Compliances

Like the registration process, post-incorporation compliance is also very important. After LLP incorporation, you have to fulfil post-incorporation compliance for just one time.

LLP Agreement

The LLP agreement is an important document that defines the rights and duties related to all the respective members who are part of the LLP firm. This agreement helps to maintain peace and prosperity and also helps to avoid any disputes and future conflicts. The LLP agreement has to be filed on the MCA portal within 30 days of LLP incorporation. It must be printed on stamp paper and must be signed by all the partners of the firm. The value of stamp paper varies from state to state.

PAN and TAN

Apply for PAN and TAN after the incorporation of LLP because without them the firm cannot open a bank account for carrying out further transactions in future.

Open a Bank Account

Once you have your PAN, you are eligible to open a bank account in the name of your LLP registration firm to carry out financial transactions.

Benefits of LLP

• LLP registration is an easy process. It is very less time-consuming and a non-complicated method. This online startup option is one of the best ways to start your business without any delay.
• Easy restructuring: The LLP Agreement governs the relationship between the partners. This method is easily amended to introduce or retire any partner, making it one of the easiest ways for restructuring.
• Audit is not compulsory: Under the LLP Act, statutory audit is not compulsory for small LLPs. However, as the amount or turnover increases annually, statutory audit by a CA becomes compulsory.
• Limited Liability: The liability for the partners is limited as they are not bound to pay any debts from their personal assets. If one partner commits misconduct, only that partner will be responsible — no other partner will face consequences for their deeds.

Disadvantages of LLP

1. The main disadvantage of LLP is that even if LLP doesn't have any activity, it is still required to file an income tax return and MCA annual return each year. Failure to do so results in a heavy penalty.
2. If one of the partners wants to transfer his/her ownership rights, he/she has to obtain the consent or permission of all the partners.
3. A Limited Liability Partnership must have at least two members. If one member decides to leave or breaks the partnership, the LLP may have to be dissolved or it will dissolve automatically.
4. Without the permission of the Reserve Bank of India (RBI), FDI in LLP would not be approved.

FAQ's

Q1. Who can become a Partner in LLP?

An individual, company, or foreign national can become a partner in LLP.

Q2. What are the benefits of LLP in India?

The benefits related to LLP enjoyed in India include: status of corporate bodies, limited liability shares, quicker decision-making through the LLP agreement, easy process of online registration and e-filing, and more.

Q3. What are the important forms associated with the process of LLP registration in India?

The important forms associated with LLP registration in India are: RUN-LLP, FILLIP, Form-5, Form-17, and Form-18.

Q4. How much time does it take to register an LLP in India?

Generally, the authority takes 10-15 days to complete the registration process of LLP. The expert CA panel of Legal Tax always makes an effort to complete the correct procedure within the given timeline.

Q5. What is the minimum capital requirement to register an LLP?

Unlike other formats of company registration, there is no minimum capital requirement to incorporate an LLP in India.

Q6. What are the minimum requirements to register LLP in India?

There must be at least two members appointed as designated partners, out of which one must be a permanent resident of India. There must also be a business address in India to register as the registered office for your LLP.

Q7. What is Director Identification Number (DIN)?

Director Identification Number is the unique number assigned by MCA to individuals on whose behalf the application is made. This allows any individual to be a Director in any Company or Designated Partner in an LLP.

Q8. Is it mandatory to have a place of office for LLP registration?

Yes, the partner must provide the place of business in India with the required list of documents. It can be both a residential or commercial plot. In most cases, the address is used for communication purposes by MCA and other concerned authorities and is also published on the portal.

Q9. When can I get the PAN and TAN of the LLP?

The PAN and TAN for the LLP can be applied for once the Certificate of Incorporation of the Limited Liability Partnership is issued. The physical copy of the PAN will be received at the registered office once dispatched by the Income Tax Department.

Q10. How many minimum partners are required to register LLP?

Under the LLP Act, 2008, a minimum of two partners is required to register an LLP.