All you need to know about LLP Registration in India

These days, Limited Liability Partnership (LLP) has become one of the most popular form of organization amongst many business owners as it has the qualities of both a partnership firm and that of a company. Further, LLP offers extra benefits in comparison to a normal partnership firm. Ever since its launch in year 2009, LLP has become an immediate success as it is easy to incorporate and provide owners with limited liability. Limited Liability Partnership Act, 2008 is responsible to govern LLP in India.

For LLP Registration in India, Legal Window is one of the renowned legal consulting company as it provides end to end solution.

LLP is very useful for the following professionals:

Benefits of forming Limited Liability Partnership (LLP)

The benefits of forming an LLP are as follows:

1. Registration an LLP requires minimal amount
2. LLP like companies also has a separate Legal entity
3. Liability of each partner is only limited to the amount of contribution made by the respective partner
4. The cost involved in forming an LLP is comparatively very low
5. Less burden of Compliances
6. LLP has dual advantage of Partnership and Company

Checklist before registering an LLP

Note down the following basic checklist to form an LLP :

• A Minimum number of 2 designated Partners: Partners are owners who are responsible to manage the LLP and manage it who shall be individuals. Further, at least one of the partners should be a resident in India.

• Maximum Limit of Partners: There is no upper cap on the limit of maximum number of partners of LLP. Hence, there can be any number of partners.

• PAN compulsory for all the partners: All the partners are compulsorily required to have their individual PAN without which they cannot proceed to become partners in LLP

• DPIN for all the partners: All the designated partner should have a Designated Partners Identification Number(DPIN). In case a proposed partner is becoming a partner in an LLP for the very first time, then he will receive it once the LLP gets registered.

• Digital Signature Certificate (DSC) for at least one Designated Partner: Amongst all the partners, at least one of them must have a DSC to digitally sign the e-forms which are required to form an LLP. In case you do not own DSC, you can reach Legal Window and get it at a very minimal cost.

• Registered Office: To form an LLP, you must have a designated place called Registered office to commence your business operations. The Registered Office can be either residential or commercial space which may be owned or rented.

Documents Required for LLP Registration

We have categorized the documents into two parts

1. Documents required from Partners
2. Documents required from LLP

Now, let us find the complete set of documents:

• Documents of Partners:
  • Copy of PAN Card
  • Copy of Driving License/Voter ID
  • Latest Bank Statement/Mobile or Telephone Bill (not older than two months)
  • Passport size Photograph preferably on white background
  • Passport (in case of Foreign Nationals/ NRIs) which has to be notarized or apostilled by the relevant authorities in the residence country of such foreign nationals and NRI, otherwise the Indian Embassy located in that country has also the authority to sign the documents. Also, Foreign Nationals or NRIs are required to provide a proof of address which can be his/her driving license, bank statement, residence card or any government-issued identity proof stating the address.
  • Consent of Designated Partners duly signed in Form 9 (Form 9 will be provided by our professionals)
  • A subscriber sheet duly attested by a practising professional agent
• Documents of LLP:
  • Proof of Registered Office Address such as Electricity Bill, Water Bill etc. (not older than 2 months)
  • NOC and Rent Agreement (if the premise is rented)

Registration Process of LLP

Step 1: Make an Application for Digital Signature Certificate (DSC): Before you proceed for getting your LLP Registered, you need to apply for the digital signature of the designated partners of the proposed LLP for signing various e-forms.
You can contact Legal Window for receiving a DSC at a very low cost.

Step 2: File an application for Reservation of Name: LLP-RUN(Limited Liability Partnership-Reserve Unique Name) has to be filed to reserve a unique name for your proposed LLP. You need to make sure that the name must not be similar to already existing names. The registrar will approve the name only if the name is not undesirable and if it is found to be unique, will grant an approval to such name within 2-3 working days.

Step 3: File the Incorporation Form for LLP: The application form to incorporate your company is known as FiLLiP(Form for incorporation of Limited Liability Partnership) which shall be filed with the Registrar which has the jurisdiction over the state in which the registered office of the proposed LLP will be situated.
You will also receive your DPIN after filing this form. If the Registrar finds all the information to be true and correct, it will approve the web form and will issue a Certificate of Incorporation.

Step 4: File Limited Liability Partnership Agreement: LLP agreement governs the mutual rights and duties amongst the partners and also between the LLP and its partners. LLP agreement must be filed in form 3 online on the portal of Ministry of Corporate Affairs (MCA) within 30 days of the date of incorporation, else penal consequences will occur.The LLP Agreement has to be printed on Stamp Paper and needs to be signed by the partners of the LLP.

Step 5: File PAN and TAN Application: As the LLP registration procedure is completed, the applicants need to file the PAN and TAN Application online/offline on the official website of NSDL.

Important Forms used by LLP

Here is a list of important forms which are used for LLP

Compliances to be done by LLP after its Registration

We can divide the LLP Compliances into two categories

• Post Incorporation Compliance – These needs to be done only once after your LLP is Registered
• Annual Compliances – These compliances are mandatory and are required to be done every year.
• Post Incorporation Compliances
  Such compliances include:
  • Filing of LLP Agreement
  • Opening Bank Account on the name of LLP
  • Filing application to receive PAN and TAN of LLP

• Annual Compliances: These compliances are mandatory regardless of the fact that your LLP has been started or not after its registration. The following returns needs to be filed as part of Annual Compliances of LLP:
  • Annual Return of LLP
  • Income Tax Return
  • Statement of Account and Solvency

Please note that even if the number of transactions after the registration of LLP is zero, then LLP will file NIL Return.

Any questions related to LLP Registration and its Compliances? Contact the legal experts at Legal Window.