LLP Registration In India

LLP Registration Online – An Overview

Limited Liability Partnership (LLP) combines the benefits of a partnership with that of a limited liability company. In India, it took shape after January 2009 and was an instant success with startups and professional services. The idea behind LLP was to provide a form of business that is easy to maintain and to help owners by providing them with limited liability.

Benefits of an LLP

Here are the major reasons why people prefer the structure of an LLP for their business structure:

Limited Liability

The members of an LLP are only liable for a small amount of debt incurred by it. On the other hand, for proprietorships and partnerships, the personal assets of directors and partners are not protected if the business goes bankrupt.

Separate Legal Entity

An LLP is a separate legal entity from the partners in it. It has an uninterrupted existence that follows perpetual succession, i.e., the partners might leave, but the business remains. The terms of dissolution have to be mutually agreed upon for the firm to dissolve.

Flexible Agreement

Transferring the ownership of an LLP is also simple. A person can easily be inducted as a designated partner and the ownership switches to them.

Suitable For Small Business

LLPs having a capital amount less than ₹25 lakhs and turnover below ₹40 lakhs per year do not require any formal audits. This makes registering as an LLP beneficial for small businesses and startups.

Eligibility Criteria

To be eligible for registering as an LLP, the following criteria must be met:

• At least two partners are required to form an LLP (no upper limit)
• If a body corporate is a partner, a natural person must be nominated to represent it
• Each partner must have an agreed contribution towards the shared capital
• LLP should have an authorized capital of at least ₹1 lakh
• At least one designated partner should be an Indian resident.

Documents Required for LLP Registration

To register an LLP you need scanned copies of the following documents:

From partners:

• PAN card or passport (foreign nationals or NRIs)
• Aadhar card/ voter’s ID/ passport/ driving license
• Latest bank statement/ telephone bill/ mobile bill/ electricity bill/ gas bill
• Passport-size photograph
• Blank document with specimen signature.

Note: One partner must self-attest the first three documents. In the case of foreign nationals or NRIs, all the documents must be notarized (if currently in India or a non-commonwealth country) or apostilled (if from a commonwealth country).

For the registered office:

• Utility bills
• Notarized rental agreement in English
• No-objection certificate from the property owner
• Sale deed/property deed in English (in case of owned property).

How to Register an LLP Online with Vakilsearch

You can register LLP online through Vakilsearch. While we make LLP registration a simple 3-step process for you, the actual registration process is elaborate and is explained below for your knowledge:

Step 1: Obtaining DSC And DIN

All the forms that need to be submitted online require the directors’ DSC. So, the first step in the process is to get DSCs and DINs for 2 partners. We collect the necessary information from you and file for them.

Step 2: Application For Name Approval

Simultaneously, we check if the name you want to register under is available and reserve it for your LLP. You can check for name availability in the MCA portal.

The approval of the name will be made by the registrar only if the central government does not deem it undesirable. The name should not hold any resemblance to any of the existing partnership firms, LLPs, trademarks, or body corporates.

Step 3: LLP Agreement

The next step is to draft the LLP agreement and other documents for registration. An LLP agreement is very crucial in a limited liability partnership as it determines the mutual rights and duties amongst the partners, and between the LLP and the partners. Thus, our experts take utmost care in drafting this agreement.

The partners enter into the LLP agreement upon registering the LLP by filing Form 3 online on the MCA portal. This procedure has to be done within 30 days of the date of incorporation.

Step 4: LLP Incorporation Certificate

Our team will file the necessary forms and documents with the registrar. Once the registrar approves all the forms and documents, you get your LLP incorporation certificate and are almost set for running your business.

Step 5: Apply for Your PAN, TAN, & Bank Account

As soon as you get the incorporation certificate, we will apply for the PAN, TAN, and bank account for your LLP.

LLP Registration Package Inclusions

The following are included in Vakilsearch’s LLP registration package:

• DSCs for 2 directors
• DINs for 2 directors
• Drafting of MoA & AoA
• Drafting partnership agreement
• Registration fees and stamp duty
• Company incorporation certificate
• PAN and TAN registration.

We also assist with:

• A first free consultation, followed by subsequent support to clear every concern you may face
• Complete support on opening a current bank account
• Comprehensive and on-time updates on ROC compliances
• Online accounting software valid for one year
• A master file that contains all the documentation needed to file the incorporation
• You will also get a zero balance current account - powered by DBS bank.

Why Vakilsearch?

• Our package covers everything you need to incorporate your LLP and get it business-ready
• Our experts are up to date with the laws and have helped businesses like you register their LLP
• You can do all the tasks for registering your LLP through a simple and easy-to-use personalised dashboard. It is completely online and can be accessed through a desktop or the Vakilsearch app on your mobile phone
• You’ll have your LLP incorporation certificate in 20 days
• Our support team is available to answer any questions you may have.

The Glossary

LLP

Limited Liability Partnership

DSC

The DSC (Digital Signature Certificate) is an instrument issued by certifying authorities by which you can sign electronic documents. As all documents needed are electronic.

DIN

Director Identification Number

Dissolution

The statutory procedure terminates the existence of a domestic corporation.

Incorporation

The act of creating or organizing a corporation under the laws of a specific jurisdiction.

Name Reservation

A procedure that allows a company to obtain exclusive use of a corporate name for a specified period.

Registered Office

The statutory address of a corporation. In states requiring the appointment of a registered agent, it is usually the address of the registered agent.

MoA

A Memorandum of Association is a document that contains the basic information which is required for incorporating a company.

AoA

Articles of Association is a document that deals with the internal governance of a company.