What is Limited Liability Partnership (LLP) Registration?

Limited Liability Partnership (LLP) was first introduced in the Limited Liability Partnership Act of 2008. The reason it was introduced was to provide a form of businesses that was easy to maintain and it helped owners by providing them with limited liability.

The advantage of opting for a Limited Liability Partnership over the traditional Partnership Firm is that an LLP gives each partner limited liability. This means that one partner is not responsible for the conduct and negligence of another partner. This is similar to what shareholders enjoy. Another feature is that in an LLP, all partners have the right to manage the business directly.

Registering an LLP is one of the easiest processes in India. The compliance and procedures are simple and take a short time to complete. This is the prime reason that many are opting for this kind of business, especially small and micro business. LawInsta is a top leader in Limite Liability Registration. It helps customers complete the process in 20 days and assures them of quality service. Apart from LLP registration, LawInsta can also help you with company registration, business registration, private registration and a host of other corporate services. For more details, schedule an appointment with one of our consultants today and they will help you take the procedure of an LLP forward.

LLP Registration Process

The LLP Registration Process is similar to the Private Limited Company incorporation procedure, except for a few minor things. The process is fairly simple and you can do it online. WIth Vakilsearch, you can get the entire process done in just 20 days. Our experts will guide you the necessities and all the things you need to know about LLP Registration.

VakilSearch can help you get your LLP Registration done in all leading metro cities of India. For your reference, a detailed explanation of the process is mentioned below.

  • Obtaining DSC and DIN

    The first step is to obtain DSC of the desired partners of the Limited Liability Partnership. The reason for this is that all the forms need to be submitted online and require the directors digital signatures.

    The law also requires that all directors file for a DIN number. The application has to be made in Form DIR- 3.

  • Application for Name Approval

    This process involves registering the LLP. Before you do this, you would need to see if the name is already taken. You can check on the free search facility on the MCA portal. The registrar only approves LLP names that are not taken before.

  • MOA and AOA submission with MCA

    The next step is to fill the MOA and AOA with the MCA. You need to fill up the form 2 citing all the details correctly. The form also required one DIN of any of the directors mentioned in the form. The procedure takes 15 days to complete.

  • LLP Incorporation Certificate

    Once the registrar approves your MOA and AOA, you’re steps closer to getting your LLP registered. The next step is to get the LLP Incorporation Certificate. You can do by submitting all documents to the registrar. The time frame is between 2- 12 days. Once you get your LLP Incorporation Certificate, you’re ready to go.

  • Apply for PAN, TAN and Bank Account

    As soon as you get the incorporation certificate, you need to apply for your company PAN & TAN with the NSDL. The cost for this procedure is less than Rs.200 and it takes around three weeks to get done.

    Note: Sometimes due to logistical reasons and heavy timelines, the Registrar make take more time in completing procedures.

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Documents Required for LLP Registration

To be submitted by Partners

  • Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)

  • Scanned copy of Voter's ID/Passport/Driver's License

  • Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill

  • Scanned passport-sized photograph

  • Specimen signature (blank document with signature [partners only])

Note: Any one of the partners must self-attest the first 3 documents. In case of foreign nationals and NRIs, all the documents must be notarised (if currently in India or a non-Commonwealth country) or apostilled (if in a Commonwealth country).

For the Registered Office

  • Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill

  • Scanned copy of Notarised Rental Agreement in English

  • Scanned copy of No-objection Certificate from property owner

  • Scanned copy of Sale Deed/Property Deed in English (in case of owned property)

Note: Your registered office need not be a commercial space; it can be your residence, too.

The LawInsta Company Registration package includes:

  • DSC for one director and DIN for up to three directors

  • Drafting of MoA & AoA

  • Registration fees and stamp duty

  • Company Incorporation Certificate

Minimum Requirements for LLP Registration

Here is what is required of all new LLPs, at the very least:

  • Two Partners: All LLPs must have at least two partners, There is no limit to the maximum number of partners

  • Indian Resident: Of the partners in the business, at least one must be a resident of India.

  • Minimum Capital Contribution: There is no minimum capital requirement for an LLP (or a company, for that matter). The LLP should have an authorised capital of at least Rs. 1 lakh.

  • Registered Office: The registered office of an LLP does not have to be a commercial space. Even a rented home can be the registered office, so long as an NoC is obtained from the landlord.

What is an LLP?

An LLP is a separately legal entity, just like a private limited company. Another similarity between the two is that the liability of the partners is limited to their contribution to the business. Also, partners don’t share liability for wrongdoings of other partners. Therefore, an LLP has many of the advantages of a private limited company. However, if you're looking to raise venture capital or attract talent with employee stock options, private limited is the way to go as LLPs cannot easily accommodate it (pick private limited company, in this case). This is why they are most popular with professional services firms (web designers or architects, for example) that require no equity funding.

Factors to Consider While Selecting an LLP Name

The Registrar of Companies (RoC) has issued naming guidelines for LLPs. It is essential that you follow the rules closely or your application may end up getting rejected, leading to a much longer process.

  • Unique Component

    For instance, in LawGen Internet Private Limited, LawGen is the unique component. Now, once taken, the name will not be given to any other business in categories related to the Internet.

  • Blacklist

    Abbreviations, adjectives and generic words are rejected. So, ABC would be rejected, as would Best Class Goods. The words bank, exchange and stock exchange, unless approved by RBI or SEBI, would also be rejected.

  • No common Trademark

    There should not be a registered trademark by the same name on the IP India website. If there is one, the name can only be approved if you are able to get a No-Objection Certificate from its owner authorising you to use it.

  • Descriptive component

    In Apotex Research Private Limited, the word 'Research' describes the business the company is into. You cannot have 'Research' in your name if you're, say, in the logistics or restaurant business.

Advantages of LLP Registration

Separate Legal Entity

An LLP is a separate legal entity. This means that it has assets in its own name and can sue and be sued. Furthermore, one partner is not responsible or liable for another partner’s misconduct or negligence.

No Owner/Manager Distinction

An LLP has partners, who own and manage the business. This is different from a private limited company, whose directors may be different from shareholders. For this reason, VCs do not invest in the LLP structure.

Flexible Agreement

The partners are free to draft the agreement as they please, with regard to their rights and duties.

Limited Liability

The liability of the partners is limited to the extent of his/her contribution to the LLP. Unless fraud has been detected, the personal assets of the partner are protected from any liability of the LLP.

Fewer compliance requirements

An LLP is much easier and cheaper to run than a private limited company as there are just three compliances per year. On the other hand, a private limited company has a lot of compliances to fulfil and conduct an audit of its books.

Easy to Wind-Up

Not only is it easy to start, it’s also easier to wind-up an LLP, as compared to a private limited company. While it still takes two to three months to complete this process, it can take over a year to close a private limited company.

Disadvantages of LLP Registration

Inability to raise VC funding

VCs would be unwilling to invest in an LLP structure. This is because all ‘shareholders’ in an LLP must be partners, which have certain responsibilities toward the entity. No VC wants any of these responsibilities, and would, therefore, only invest in a private limited company.

Rights of Partners

An LLP can be structured in such a way that one partner has more rights than another. So it isn’t a one vote per share system. So, some lesser partners may feel compromised if higher shareholders choose to move the business in a direction that affects their interests.

Greater penalties

An LLP’s compliances are minimal, but if you don’t complete them, you could end up paying more in fines than you would with a private limited company. These fines can escalate to Rs. 5 lakh for a single year

Our Testimonials

They registered my LLP, drafted documents and got digital signature also.

– Rijhwani

LLP registration done fast.

Fast input and quality work.

You guys are always ready to provide quality work. You have upped the ante.

I registered LLP with my partner on advice of Lawinsta. Its been my best decision ever.

– D S Bhandari

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