Over time, the government eventually realized that traditional commercial structures such as partnerships and companies, came with several difficulties and strict requirements that frequently made conducting business more difficult. To overcome these limitations, the concept of a Limited Liability Partnership (LLP) was introduced in India in 2008.
An LLP is a hybrid business structure combining the advantages of partnership firms and corporate entities. This structure provides businesses with the dual benefits of limited compliance requirements and protecting the partners' assets.
The LLP registration process in India is easy, quick, and affordable. This blog aims to offer a clear understanding of LLP registration and guide you through the process of smoothly registering your LLP company in India.
LLP Registration Requirements in India:
To register LLP in India, certain requirements must be met. These include:
- Registered Office Address: Owned Office, Leased Office, Virtual Office
- Promoters (Partners): Minimum 2 designated partners, They can be individuals / Corporations, 100% Foreign shareholding allowed.
- Nominee to the Partners: Each partner must have one nominee, 1 Indian resident is mandatory.
- Fixed Capital: Minimum capital required Rs.1, Preferable capital is Rs. 1,00,000 to ensure smooth operations.
- LLP Objects: Define LLP objects, Industry, sector, etc.
What is a LLP Company Registration?
Limited Liability Partnership is a unique business structure that combines a partnership's flexibility with a company's limited liability protection. It allows partners to manage the business while protecting their assets from the firm’s debts.
LLPs are recognized as separate legal entities, they can own property and enter contracts independently. Businesses seeking simplicity, less paperwork, and legal protection for their partners would find this structure suitable.
What is the Process for LLP Incorporation in India?
LLP formation in India follows a structured process governed by the Limited Liability Partnership Act, 2008. Here’s a brief outline of the key steps involved in registration.
- Obtain Digital Signature Certificate (DSC) for partners: Before starting the LLP Registration process, the initial step is applying for a Digital Signature Certificate. All LLP paperwork must be submitted electronically, requiring the partners' digital signatures. Each partner can get their DSC from government-approved certifying organizations. This would ensure a seamless and trouble-free LLP registration process.
- Apply for Director Identification Number (DIN):Once the DSC is obtained, the designated partner must obtain DIN by filing Form DIR-3 on the MCA portal. A scanned copy of the documents and Form DIR-3, which must be signed by a Chartered Accountant or Company Secretary, must be attached.
- Name of Approval:The key approval during the LLP registration process is the Name Reservation under the RUN-LLP (Reserve Unique Name) service provided by the Ministry of Corporate Affairs (MCA). This ensures that the LLP name is unique and not identical to the existing company. The Registrar of Companies (ROC) verifies the application and approves it.
- Apply for Certificate of Incorporation:Once the application is reviewed or approved, the Registrar of Companies (ROC) promptly issues a certificate of incorporation to the Limited Liability Partnership (LLP), officially confirming its registration.
- Submission of LLP Agreement:The LLP Agreement defines the partners' roles, responsibilities, and rights and governs the LLP's operations. It must be completed on the proper stamp paper, following state requirements. The signed agreement must be filed with the ROC using Form 3 within 30 days of LLP registration.
Documents required for LLP company register in India:
Documents required of partners:
- Pan card (mandatory for Indian nationals)
- Passport (mandatory for NRIs)
- Passport-size photograph.
- Address proof.
- Residence proof.
Documents of LLP Registration:
- Address proof not older than 2 months.
- NOC from the property owner.
- Digital Signature Certificate (DSC) for all designated partners to sign online documents.
- Rent Agreement if office space not owned by LLP.
These documents ensure proper verification and compliance with legal registration requirements. For professional guidance and assistance with the LLP registration services, please contact us at enquire@kdpaccountants.com.
Conclusion:
Registering LLP in India is a practical and efficient way to establish a company while enjoying the dual benefits of limited compliance requirements and asset protection for partners. The procedure might be simple and easy if the outlined steps are followed and the right paperwork is kept.
At KDP, we are here to simplify this journey for you. Our experienced team offers comprehensive support, ensuring accurate filings and compliance with all legal requirements. We carefully manage every detail, from obtaining a Digital Signature Certificate (DSC) to drafting the LLP Agreement and receiving the certificate of Incorporation.
Frequently Asked Questions (FAQs):
How long does it take to register LLP in India?
Registering an LLP typically requires 1 month, depending on the timely submission of necessary documents and government approvals.
What documents required for LLP registration?
Documents include PAN card, Passport (for NRIs), residence proof of partners, and address proof of the registered office, along with a Digital Signature Certificate (DSC) for partners is also mandatory.
What is the procedure for LLP registration in India?
The procedure includes submitting the LLP Agreement to the Registrar of Companies, obtaining DSC and DIN for partners, and submitting the incorporation application.
Can a single person form an LLP in India?
No, an LLP requires at least two designated partners, with at least one being an Indian resident.
How KDP Accountants will help with LLP Registration?
From acquiring the DSC and DIN to submitting the LLP Agreement, KDP Accountants provides comprehensive support. Our professionals ensure correct documentation, compliance with legal requirements, and a hassle-free registration process. For professional services, contact us at enquire@kdpaccountants.com.
