Limited Liability Partnership Registration - Online Procedure, Documents Required, Cost

Limited Liability Partnership (LLP) is an upgraded form of Partnership, which has limited liability features of a Private Limited Company and the flexibility of a Partnership firm. The maintenance cost of an LLP and simplicity in formation is one of the prime reasons why it has become a preferred choice for entity incorporation. You can easily commence your business by incorporating an LLP and get the combined benefit of a limited company as well as a partnership firm. Read more to know the process, documents required, and fees of LLP registration.

What is LLP Registration?

LLP is a form of partnership that is registered under the Limited Liability Partnership Act, 2008 where liabilities of all the partners are limited to the extent of contribution bought by them. It helps owners to limit their liabilities while enjoying the advantages of a limited company which is an edge over a traditional partnership firm.

No partner is liable on account of unauthorized actions of other partners, thus individual partners can safeguard them from joint liability arising from misconduct of other partners. LLP as an organization is mostly preferred by professionals, micro and small businesses.

Benefits of LLP Registration

• Separate Legal Entity: An LLP is a separate legal entity from its partners. It is a major advantage that is not available for normal partnerships.
• Limited Liability: It helps in protecting the personal assets of the owners with limited liability protection.
• Lower Cost: The cost of registering an LLP is comparatively lower than a private limited as well as a public limited company.
• No Minimum Capital Required: An LLP can be formed with the least amount of capital as there is no minimum capital requirement for incorporating an LLP.
• Minimal Compliances: One of the key benefits of registering an LLP is lower compliance requirements. Mandatory criteria for annual compliances of an LLP are on the lower side as when turnover is less than 40 lakhs, LLP audit is optional.

Checklist for LLP Registration

There are certain minimum requirements for LLP registration that need to be met. Here's the quick checklist:

• Minimum two partners
• At least one partner should be a resident of India
• DPIN for all designated partners
• DSC for all designated partners
• Each partner has to contribute towards the capital of LLP
• Address proof for the office of LLP

LLP Registration Process

1. Step 1: Reserve Your LLP Name
   LLP RUN (Limited Liability Partnership-Reserve Unique Name) form is filed for reservation of proposed name. While making the name application, it is recommended that the name should not be similar, identical or phonetically similar to existing companies, firms, LLPs, and trademarks. You can easily check the name availability by using our LLP name search tool or company name search tool. If it fulfills all the prerequisites, the proposed name is approved by the Central Registration Center of the Ministry of Corporate Affairs if found in ordinance.
   Note: It should be ensured that the business name does not resemble the name of any other already registered company and also does not violate the provisions of emblems and names (Prevention of Improper Use Act, 1950).
2. Step 2: Obtain Digital Signature Certificate
   Limited Liability Partnership incorporation is a completely digital process and therefore the requirement of a Digital Signature Certificate is a mandatory criterion. All the designated partners of the proposed LLP need to apply for a DSC from the certified agencies. Obtaining a DSC is a completely online process and it can be done within 24 hours. This process involves 3 simple verifications that are document verification, video verification, and phone verification.
3. Step 3: Application for LLP
   FiLLip form has to be filed with the registrar of companies for incorporation of Limited Liability Partnership. Details which has to be filed in the FiLLip form are:
   
   1. Address of the registered office
   2. ROC
   3. Business activity code
   4. Number of designated partners and partners
   5. Personal details of designated partners and partners
   6. Contribution of designated partners and partners
   7. Certification by a professional (CA, CS, CMA)
4. Step 4: Issuance of COI (Certificate of Incorporation)
   Post-approval of FiLLip form, Certificate of Incorporation is issued in form 16 from Central Registration Center of MCA under the letterhead of Government of India. LLP identification number is a part of the certificate of incorporation.
5. Step 5: Drafting & Filing of LLP Agreement
   LLP Agreement is the most important document of an LLP that governs the mutual rights and duties of the partners; between the LLP & its partners. Drafting and filing of stamped LLP Agreement have to be made within 30 days from the date of issuance of incorporation certificate. Application for filing of LLP Agreement is made under Form 3 online on MCA portal. Failing to do so would attract penal provisions of the LLP Act, 2008.

Documents Required for LLP Registration

As per the Limited Liability Partnership Act 2008, you are required to provide proper identity proof of partners and address proof of office for LLP registration.

Documents of Partners

• Passport size photographs of all partners
• Copy of PAN Card of all Partners
• Copy of Aadhar Card
• Passport (in case of Foreign Nationals or NRIs)
• Copy of Driving License or Voter ID
• Bank statement (not older than two months)

Documents of Registered Office

• Electricity Bill or any other utility bill for the address proof
• If it is a rented property, a No Objection Certificate from the owner of the property is required

Documents You’ll Get After LLP Registration

• Certificate of Incorporation
• LLP Agreement
• FiLLip Form
• Form-3
• LLP PAN
• LLP TAN
• Payment Challan
• Company Master data
• DSC and DPIN for designated partners

Packages

Frequently Asked Questions (FAQ)