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What Is LLP? The Process of Limited Liability Partnership Registration

In recent times where startups are on the rise, LLP is the most preferred form of organization and is
chosen by most budding entrepreneurs and professional firms like Chartered Accountants, recruiting
firms, consulting businesses, etc., even some existing ones are switching to LLP as it gives both, the flexibility of partnership firm and benefits of a company into a single form of organization.

What Is LLP? The Process of Limited Liability Partnership Registration

 

It is defined as a partnership that is registered under the Limited Liability Partnership Act in the office of Registrar of Companies (ROC), India. It is an alternative corporate organization giving the benefits of  limited liability of a company with the flexibility of a partnership. LLP can continue its existence irrespective of changes in partners, it can continue its existence, enter into contracts and can hold property in its name and also is liable to the full extent of its assets.

What Is LLP?

Why go for a Limited Liability Partnership?

LLP has a separate legal entity independent of its owners.
The formation of an LLP is lower as compared to other forms of organization.
The liability of each member/partner is limited to the extent of the contribution made by them respectively.
Flexible agreement as less compliance and regulations are required.
Suitable for any type or scale of business.
No requirement of minimum capital contribution.


Why Register LLP?

If you wish to start a Limited Liability Partnership, you have to get it registered, the LLP Registration in
India is done under the Limited Liability Partnership Act, 2008. The minimum number of partners required is 2 and the maximum number has no upper limit. Among the partners, there should be a minimum of two designated partners who shall be individuals, and at least one of them should be a resident in India. The rights and duties of designated partners are governed by the LLP Agreement. They are directly responsible for the compliance of all the provisions of the LLP Act, 2008 and provisions specified in the LLP Agreement. For Limited Liability Partnership Registration Online India or LLP Registration India, different forms are needed to be filled for their respective purposes like for incorporation of LLP, reservation of name of the LLP, changing the name of LLP, etc., different documents required, a proper process, and also some time and cost is involved.

Limited Liability Partnership Registration Online India requires the following forms to be filled:

Run-LLP - (Reserve Unique Name- Limited Liability Partnership)
Form for reserving a name for the LLP
FiLLip- Form for incorporation of LLP
Form 5- Notice for change of name
Form 17- Application and statement for the conversion of a firm into LLP
Form 18- Application and statement for the conversion of a private company/ unlisted public company into LLP
 

For Limited Liability Partnership Registration Online India or LLP Registration India, the registration process involves-

Arranging all the partner's documents
Filling forms mentioned

Applying for DSC and DIN

Getting Name approval

Preparation and verification of all documents
File LLP Incorporation Docs with ROC
Get LLP Incorporation Certificate
Drafting LLP Agreement

Filing LLP Agreement

Obtain DSC i.e., Digital Signature Certificate

The first step in this process is to obtain DSC of the desired partners of the LLP as all the forms are to be  submitted online and therefore, require directors’ to sign through digital signatures.
 

Apply for DIN (Director Identification Number)

Next step in the registration process is all the directors to file for a DIN number for which the application has to be made in Form DIR-3.

Apply and take name approval for your LLP

In this process, you register your LLP but before that, you need to have a name and check on the free search facility on the MCA portal if the same name is already taken or not. If not go ahead with the same name, but if yes then you’ll have to look for some other name. Also, the name should not resemble any existing trademark, name, or body corporates. If found appropriate and desirable, the Registrar would approve your LLP’s name.

Incorporation of LLP

The form used for incorporation is FiLLiP which shall be filed with the Registrar having jurisdiction over the state of the registered office of the LLP. If the name that is applied for is approved and reserved, then this name shall be filled as the proposed name of the LLP.

File LLP Agreement

LLP agreement is extremely important in a limited liability partnership because it determines the mutual rights and duties amongst the partners, and between the LLP and the partners. On the LLP Registration, partners enter into the LLP agreement by filing Form 3 online on the MCA portal within 30 days of the incorporation.

LLP Incorporation Certificate

Once your MOA and AOA gets approved by the Registrar, next comes the LLP Incorporation Certificate. You can do that by submitting all documents to the registrar within a time frame of 2 to 12 days. And once you get your LLP Incorporation Certificate, you’re almost there.

Applying for PAN, TAN & BANK Account

After you get the incorporation certificate, you need to apply for your company PAN & TAN with the
NSDL which costs less than Rs.200 and takes about three weeks to get completed.

Documents required to Register LLP

In the registration process of Limited Liability Partnership, documents of both the partners as well as the
LLP are required. Following are the documents whose scanned copies are required:

Documents required of partners: 

PAN card / ID proof of the partners 
Address proof of the partners 
Residence proof of the partners 
Photograph 
Latest Bank Statement/ Electricity Bill 
Passport (in case of Foreign Nationals/ NRIs) 

Documents required of LLP:

Proof of the registered office address
Latest Bank Statement/Electricity Bill
Notarized Rental Agreement
NOC from the property owner if rented
Property Deed if an owned property
Digital Signature Certificate

Time taken in Limited Liability Partnership Registration Online India or for
LLP Registration India

The average time required to complete an LLP registration is about 15 to 20 working days as subject to
the government processing time and the client document submission.

16 Jan

NeuSource Startup
Akash Rai

"Any time is a good time to start a company.” Neusource indulge in providing business consultancy services which help startups to accomplish their desired results as a TAJ EXPRESS. If you’re passionate about something and you work hard, then neusource is the right choice for you.