LLP Registration Online in India

In India, the concept of Limited Liability Partnership was introduced in 2008 by the LLP Act, 2008. In India, LLP has become the most preferred form of business among entrepreneurs. Registering an LLP in India has both the limited liability features of a Private Company and the flexibility of a Partnership Firm. No partner is answerable on account of unauthorized or illegal actions of other partners, thus individual partners are protected from joint liability created by another partner’s wrongdoing. LLP is generally preferred by professionals, Micro & Small businesses that are family owned or closely held. In 2022, the MCA (Ministry of Corporate Affairs) introduced LLP (Second Amendment) Rules, 2022 and it has made the procedure of LLP Registration even easier & transparent as now all the LLP Forms will be digital-based forms. Also, with the LLP (Second Amendment) Rules, 2022, Limited Liability Partnerships shall be allotted their TAN & PAN along with the Certificate of Incorporation itself.

Benefits of LLP Registration in India

Registering a Limited Liability Partnership (LLP) in India offers several benefits to entrepreneurs and business owners. Here are some key advantages:

1.Limited Liability: The primary advantage of an LLP is that it offers limited liability protection to its partners. This means that the personal assets of the partners are protected, and they are not personally liable for the debts and liabilities of the LLP. The liability of each partner is limited to the extent of their capital contribution.

2.Flexible Management: LLPs offer flexibility in management, allowing partners to organize and manage the business as per their agreement. There are no stringent requirements regarding the management structure, allowing partners to customize roles and responsibilities based on their preferences.

3.Tax Benefits: LLPs enjoy favorable tax treatment compared to other business structures. LLPs are not subject to dividend distribution tax (DDT), and partners are taxed at the individual level based on their share of profits. Additionally, LLPs are not liable to pay the minimum alternative tax (MAT).

4.Ease of Formation: LLP registration is relatively simple and straightforward compared to other business structures like companies. The registration process involves fewer formalities and compliance requirements, making it easier and less costly to set up an LLP.

5.Separate Legal Entity: An LLP is considered a separate legal entity distinct from its partners. It can enter into contracts, own property, and sue or be sued in its own name. This provides credibility and enhances the business's ability to enter into transactions and raise capital.

6.Perpetual Succession: The existence of an LLP is not affected by changes in its partners. It enjoys perpetual succession, meaning it continues to exist irrespective of changes in ownership or the death of partners.

7.No Minimum Capital Requirement: LLPs do not have any minimum capital requirements, allowing partners to start the business with minimal capital investment. This makes it an attractive option for startups and small businesses with limited resources.

8.Ease of Compliance: LLPs have fewer compliance requirements compared to companies. They are not required to hold annual general meetings or undergo elaborate audit procedures unless their annual turnover exceeds a specified threshold.

9.Flexibility in Ownership: LLPs can have an unlimited number of partners, including individuals, corporations, or other LLPs. There are no restrictions on the transfer of ownership interests, providing flexibility in admitting new partners or exiting existing ones.

10.Professional Image: Registering as an LLP can enhance the professional image of the business, as it signifies a formal and legally recognized business entity. This can instill confidence among clients, suppliers, and other stakeholders.

Overall, LLP registration offers a compelling blend of limited liability protection, flexible management, favorable tax treatment, and ease of formation, making it an attractive option for various businesses in India.

What are the characteristics of an LLP in India?

The following are the characteristics of an LLP in India:

1.It’s a body corporate & legal entity separate from its members;

2.The members of an LLP have a limited liability, limited to their agreed contribution to the LLP;

3.It has the organizational flexibility of a Partnership;

4.It has a perpetual succession, it continues to exist even after the founding partners leave the organization. All it requires is to have at least 2 partners;

5.Its accounting & filing requirements are similar to that of a Company;

6.Less compliance and regulations;

7.No requirement for minimum capital contribution;

8.At least one partner must be a resident of India;

9.There is no upper limit on the maximum number of Partners.

Checklist for the Registration of LLP

Following is the checklist for LLP Registration in India:

Minimum 2 Partners are required;

Digital Signature Certificate for all the proposed Partners;

DPIN (Designated Partner Identification Number);

LLP Name which is not similar to any existing LLP;

LLP Agreement between the Partners;

Proof of registered office of the LLP;

Capital contribution by the LLP Partners.

What are the Different Types of LLP Forms in India?

Following is the list of all types of LLP Forms in India:

FiLLiP Form: This form is used for the incorporation of LLP in India.

Form 1: This form is used for reserving a name for the LLP.

Form 2A: Details of designated partners & all other partners.

Form 3: Details regarding LLP Agreement.

Form 4: Notice of appointment, cessation, or change in designation of a designated partner or partner and consent to become a partner or designated partner.

Form 5: Notice for change of name.

Form 6: Application for reservation of name by foreign LLP or foreign company planning to establish a place of business in India.

Form 7: Notice for change of registered office address.

Form 8: Statement of Account & Solvency.

Form 9: Application for rectification of name of LLP. Form 10: Application for conversion of a firm into an LLP.

Form 11: Annual Return of LLP.

Form 12:Notice of appointment of a partner or designated partner or consent to become a partner or designated partner.

Form 15:Notice for striking off name of LLP from the register.

Form 17: This form is used for the conversion of a firm into LLP.

Form 18: This form is for the conversion of a Private Limited Company or unlisted public company into LLP.

Form 22:Notice of intimation of order of court or tribunal or any other competent authority.

Form 23: Application for compounding of an offense under the LLP Act.

Form 24: This is the application to the ROC for striking off the name of LLP.

These are some of the common LLP forms used in India for various purposes, including incorporation, compliance, changes in LLP details, annual filings, and other transactions. It's important to use the correct form for the intended purpose and ensure compliance with all regulatory requirements to avoid penalties or legal issues.

Procedure for LLP Registration in India

Following is the step-by-step procedure for LLP Registration in India:

Step 1: Obtain DSC: We already know that the documents for LLP Registration are filed online & are required to be digitally signed. So, before starting the LLP Registration process, you must apply for the Digital Signature Certificate (DSC) of the designated Partners of the proposed LLP. Hence, the designated Partner must obtain their DSCs from the Government-recognized certifying agencies.

Step 2: Get DIN: After obtaining DSC, then you need to apply for DIN of all the proposed Partners or those wanting to be designated Partner of LLP. The application for the allotment of DIN has to be made in Form DIR-3.

Step 3: Application for Name Approval: LLP-RUN application form is for the name reservation of the Limited Liability Partnership. But before applying for the name reservation, it is necessary to use the free name search facility on MCA Portal. The system will provide the list of closely resembling names of existing companies/LLPs based on the search criteria. This will definitely help you choose names not identical to already registered names. The Registrar will approve the proposed name only if the name is not undesirable in the Central Government’s opinion & doesn’t resemble any existing Partnership Firm or an LLP or a body corporate or a Trademark.

Step 4: Filing FiLLiP Form: For the LLP Registration in India, you need to file a FiLLiP Form and submit it to the Registrar who has jurisdiction over the State in which the registered office of the LLP is situated. The Form will be an integrated form. This Form is also used for allotment of DPIN, if a person who is to be appointed as a designated partner doesn’t have a DPIN or DIN. The application for reservation may be made via FiLLiP too. In case the name is approved, the name shall be filled as the proposed name of the Limited Liability Partnership.

Step 5: File LLP Agreement: This Agreement governs the mutual rights & duties amongst the Partners & also between the LLP & its Partners. LLP Agreement must be filed in Form-3 online, Form-3 for the LLP Agreement must be filed within 30 days of the Incorporation. This Agreement has to be printed on stamp paper. The value of Stamp Paper is different for every state.

Step 6: Apply for PAN, TAN, and Open a Bank Account: Once you get the Certificate of Incorporation we will apply for the PAN, TAN and Bank Account for your Limited Liability Partnership.

What are the vital documents required for LLP Registration in India?

Following is the list of all the vital documents required for LLP Registration in India:

Documents of all the Partners:

1.PAN Card or Identity Proof of all the Partners: All the designated Partners are required to provide their PAN and it acts as a primary identity proof.

2.Address Proof of Partners: For the address proof, Partners can submit any one document out of Passport, Aadhar Card, Voter’s Id, or Driving License. Name & other information as per address proof & PAN Card should be the same. If the spelling of one’s own name or father’s name or DoB is different in PAN Card & address proof, it should be corrected before submitting to the Registrar of Companies.

3.Partners’ Residence Proof: Latest telephone bill, electricity bill, bank statement, or gas bill should be submitted as residence proof. Note: Such bills should not be more than 2-3 months old & must contain the Partner’s Name as mentioned in the PAN Card.

4.Passport sized-photos: Partners should also provide their latest passport size photos.

5.Passport: For becoming a Partner in a Limited Liability Partnership, NRIs & Foreign Nationals have to submit their passport mandatorily. Passport has to be notarized by the concerned authorities in the country of such NRI & Foreign Nationals, else the Indian Embassy located in that country can also sign the documents.

Proof of Registered Office Address:

If the registered office is taken on rent, an NOC & a Rent Agreement from the landlord has to be submitted. NOC will be the consent of the landlord to allow the LLP to use the place as a registered office.

Submit the latest utility bills like electricity, gas, telephone bill, etc. and the bill should contain the complete address of the premise & owner’s name & the document should not be older than 2 months.

LLP Compliance

All LLPs incorporated in India are required to file statutory returns with MCA every year. Limited Liability Partnerships having a sales turnover of over Rs. 40 lakhs or capital of over Rs. 25 lakhs will also be required to complete a statutory audit. RegisterKaro can help you maintain your LLP Compliance at a very affordable price.

Why MrTaxpert for the Registration of LLP in India?

1.We're not just about paperwork, we're about paving the way for your business triumph!.

2.You will have your LLP Incorporation Certificate in minimal time.

3.Our support team is available to answer all your questions.