LLP Registration

Get Started with Limited Liability Partnership (LLP) in India

Limited Liability Partnership (LLP) offer limited liability protection for an association of persons doing business. Ideal business structure for Small and Medium sized Enterprises going for Partnership.

Our Package starts with INR 8,000 ONLY

All process takes 10 to 15 days, subject to government and client processing time. Price will vary state to state.

Limited Liability Partnership (LLP)

Limited Liability Partnership (LLP) was introduced in India by way of the Limited Liability Partnership Act, 2008. The basic premise behind the introduction of Limited Liability Partnership (LLP) is to provide a form of business entity that is simple to maintain while providing limited liability to the owners. Since, its introduction in 2010, LLPs have been well received with over 1 lakhs registrations so far until September, 2014.

The main advantage of a Limited Liability Partnership over a traditional partnership firm is that in a LLP, one partner is not responsible or liable for another partner's misconduct or negligence. A LLP also provides limited liability protection for the owners from the debts of the LLP. Therefore, all partners in a LLP enjoy a form of limited liability protection for each individual's protection within the partnership, similar to that of the shareholders of a private limited company. However, unlike private limited company shareholder, the partners of a LLP have the right to manage the business directly.

LLP is one of the easiest form of business to incorporate and manage in India. With an easy incorporation process and simple compliance formalities, LLP is preferred by Professionals, Micro and Small businesses that are family owned or closely-held. Since, LLPs are not capable of issuing equity shares, LLP should be used for any business that has plans for raising equity funds during its lifecycle.

Steadfast Consulting offers a variety of business registration services in addition to Limited Liability Partnership Registration such as Private Limited Company Registration, One Person Company Registration. The average time taken to complete a LLP registration is about 10 - 15 working days, subject to government processing time and client document submission. Get a free consultation on LLP registration by scheduling an appointment with an Steadfast Consultancy Advisor.

Reasons to Register a One Person Company

Separate Legal Entity

A LLP is a legal entity and a juristic person established under the Act. The partners are distinct from the entity and both can sue each other and get sued in the process.

Uninterrupted Existence

A LLP has ‘perpetual succession’, that is continued existence until it is brought on the terms of the dissolution by mutual agreement within the partners. Partners may come and go, but an LLP goes on.

Audit not Required

Entrepreneurs earning a turnover of less than 40 Lakhs and capital contribution of less than 25 Lakh need not get their accounts audited .Therefore, LLPs are ideal for startups and small businesses that are just starting their operations and want to have minimal regulatory compliance related formalities.

Easy Transferability

The ownership of a LLP can be easily transferred to another person. All you need is to induct them as a Designated Partner of the LLP. LLP is a separate legal entity separate from its Managing Partners, so by changing the Managing Partners, the ownership of the LLP can be changed.

Owning Property

An LLP being a juristic person, can acquire, own and enjoy property in its own name. And this is entirely distinct from its partners. No Partner can make any claim upon the property of the LLP so long as the LLP is a going concern.

Limited Liability

The biggest advantage is Limited Liability, which means the status of being legally responsible only to a limited amount for debts of a LLP. Unlike proprietorships and partnerships, in a LLP the liability of the members in respect of the LLP’s debts is limited. The personal assets of the directors are safe if the company goes bankrupt.

So it’s entirely a win –win situation for you if you plan to step to head forward with a suffix LLP.

Documents required for LLP Registration in India

For Designated partners

Copy of PAN Card
Aadhar Card
Address Proof (Bank Statement, Mobile Bill, Telephone Bill)
Passport Size Photo

For Registered Office

Ownership Proof (Electricity Bill etc)
Utility Bill (Gas Bill, Electricity Bill)
NOC / Consent Letter

STEPS INVOLVED IN LLP REGISTRATION

1. Application of DSC & DPIN: Our very first step in this direction would be getting Digital Signature Certificate (DSC) and Designated Partner Identification Number (DPIN) for the proposed Partners of the LLP. Within a timeframe of 1 to 2 working days DPIN and DSC can be obtained for the proposed Partners. If the partners already have DSC and DPIN, then this step can be skipped.

2. Name approval: A minimum of one and a maximum of six proposed names are required to be given to the MCA in Form-1. Subject to availability, naming guidelines and MCA processing time, we will get back to you with the Name approval within 2 to 3 working days. Names provided should ideally be unique and suggestive of company business.

3. Drafting & Submission of Subscribers Sheet: Once name is approved, one needs to draft subscribers sheet and get it filed with MCA along with proof of registered office for further approval in Form-2.

4. Get incorporation certificate: After filing of Form-2, MCA will issue Certificate of Incorporation. MCA usually takes 4 to 5 working days time to approve the application for incorporation, subject to other conditions. Incorporation certificate is a proof that LLP has been created. It also includes your LLP number (i.e. LLPIN).

5. Submission of LLP Agreement: After getting certificate of incorporation, drafting of LLP Agreement starts and is required to submit within 30 days of incorporation in Form-3.

6. Apply for PAN, TAN and Bank account: Then you need to apply for PAN and TAN. PAN and TAN are received in 7 working days. Post this, you can submit the Incorporation certificate, LLP Agreement and PAN with bank to open your bank account.

FACTORS TO CONSIDER IN LLP NAME SELECTION

The name of your LLP is very important. Your LLP’s name is the first impression to your buyers, suppliers and stakeholders. It should therefore be attractive,relevant and suggestive. There are several factors that you should keep in mind while choosing a name for your company.

Short & Simple

The name should be concise and not be too long. People should be able to recall and pronounce your company’s name easily the first time they hear or read it.

Meaningful

The name of your LLP should be relevant to your business. It should fit the company’s branding strategy. For example, Infosys refers to information systems or IT technologies.

Unique

Name of your LLP should not be exactly the same or identical to an existing LLP or company or trademark. You can go to search.legalraasta.com to check if your company name matches any others. Ideally, you should avoid plural version e.g, “Snapdeals” or merely changing the letter Case or punctuation marks or spacing in an existing LLP, Company and Trademark name.

Suffix

The name of your Limited Liability Partnership should end with “LLP”.

Should not be illegal / offensive

The name of your LLP should not be against law. It should not be abusive or against the customs and beliefs of any religion and should not use words or phrases which are used as a slur and are offensive to a particular group of people. Further, the name should not include foul words or phrases.

Should not violate any laws

Your LLP’s nameshould not be given under and violate the Emblems and Names (Prevention of Improper use) Act, 1950. Should not use the words “British India”.

Drafting of LLP Partnership Agreement in India

LLP agreement is the sole documents which governs the entire LLP operations and therefore, it automatically becomes most important. Even if you are not registering your LLP with Steadfast Consultancy, then also you must ask your service provider to draft the LLP agreement properly and make sure to include the following points:

Capital and Profits: Gone are the days when people used to trust and commit upon oral agreements. Hence, your agreement must contain the points regarding initial capital, Interest on loan, capital and profit distribution etc.
Partners rights & Duties: Mostly partners are set apart because of miscommunication between the partners and hence you must document the rights and duties properly.
Other: You should also include points like Admission of new partner, retirement, expulsion etc.

FREQUENTLY ASKED QUESTIONS

1. What is the minimum number of Partners required to start a Limited Liability Partnership?

At least two partners are required for LLP registration. The maximum partners can be 200. If you are the sole owner, you can register as a One Person Company.

2. Who can become a partner in LLP?

Any individual/organisation can become the partner in LLP including foreigners/NRI’s. However, the individual must 18+ in terms of age and should have a valid PAN card.

3. Do I have to be available in person to incorporate an LLP?

Our procedure is 100% online which means there is no compulsion for you to be present at our office physically. A scanned copy of documents can be sent to us via mail, and we will handle the rest.

4. Once I pay for the incorporation, is there any other payment before I get the Incorporation Certificate?

We do not have any hidden charges. Our system is quite transparent. After making your payment, we will send you an invoice that is all-inclusive, with no hidden charges.

5. How much money do I need to invest upfront in starting the business?

You need to have a bank account with a minimum balance, which could be as little as Rs. 5000. You need not invest any more capital in starting the business. You need not even deposit this amount to the bank. You can also show that the capital has been utilised as the pre-incorporation expenses of LLP e.g, LLP registration expenses. You can also show this capital has been infused in form of assets such as computers etc.

6. Can NRIs/Foreign Nationals be a Designated Partner in LLP?

Yes, but only after he has been assigned with DIN/DPIN. However, at least one designated partner in LLP must be a Resident of India. In fact, the foreign director can also be a majority shareholder in the company

7. Can I register the LLP at my home address?

Yes, you can register your LLP at your residential address. It is perfectly legal to start the company at your home or in your garage. MCA team typically doesn’t visit your office. You just have to provide your home address proof such as rent agreement or electricity bill.

8. Can a Salaried working person also become a partner in an LLP?

Yes, you as a salaried person can become a partner in an LLP. You need to check your employment agreement if that allows for such provisions. In most, cases employers are comfortable with the fact that their employee is a director in another company.

9. Can I convert my Limited Liability Partnership (LLP) in a Private Limited company?

No, you can’t convert your LLP into a Private Limited Company as it is not MCA. Both the LLP Act, 2008 and the Companies Act, 2013 don’t have any provisions on conversion of LLP in a private limited company. However, if you want to expand your business you can register a new Private Limited Company with the same name as that of the LLP. The LLP company just needs to issue a no objection certificate.

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