An LLP Registration in India is a different type of business structure that combines the advantages of a corporation with the adaptability of a partnership firm. Limited Liability Partnerships (LLP) have recently emerged as the preferred business structure among entrepreneurs. It combines the advantages of “company” and “partnership firm” into a single organizational structure. An LLP must have a minimum of two partners to be incorporated. There is, however, no cap on it. One of the LLP’s partners must be resident of India. The terms of the Limited Liability Partnership Act of 2008 apply to all LLPs. The LLP agreement sets forth the rights, obligations, and liabilities of the partners, who are obligated to abide by all LLP Act requirements. In this blog, we will discuss LLP Registration Process.
Required Documents for LLP Registration Process
An LLP must be registered in India by submitting the following documents. All the documents given below are the general documents required for LLP Registration Process but this is not the exhaustive list of the documents-
- PAN cards of the partners
- Partners’ Address Proof related documents
- Utility Bill for the planned Registered Office of the LLP
- Landlord’s No Objection Certificate which is also known as NOC
- Copy of the lease agreement which was done between the landlord and the LLP
The partners’ PAN cards and address verification are required in order to start the LLP Registration process. The paperwork necessary to set up the LLP’s Registered Office can be submitted once the Registrar of Companies has granted authorization for the name of the entity.
LLP Registration Process
The Limited Liability Partnership (LLP) is the best choice for a business entity. It is necessary to follow the LLP Registration Process in order to get the registration. In terms of incorporation and management, the creation of an LLP is simple and also LLP Registration Process is not that tough. The steps in the LLP Registration Process are as follows-
- Obtain Digital Signature Certificate
A digital signature certificate for the specified partners must be requested before the Limited Liability Partnership registration procedure can start. This is crucial because all the documents needed for online LLP registration are processed digitally and call for the partners’ digital signatures. These credentials are available through certifying organizations that are approved by the government.
- Director Identification Number (DIN) Request Form
It is necessary for all partners who have been designated or who plan to be partners in the proposed LLP. Any Chartered Accountant, Company Secretary, Cost Accountant, or Advocate must sign Form DIR 3, which must also have a scanned copy of the supporting documentation attached.
- Reservation and approval of names
Prior to quoting a name during the creation process, one must perform a free name search on the MCA site. The system will offer names that are very similar to those of the existing LLPs. Choosing a name at this point that is distinct from already used names is simpler. The Registrar will only authorize a name if it differs from other current names and is not deemed undesirable by the Central Government. Searching for a corporate name is possible here.
- LLP incorporation
A form must be filled out in order to incorporate an LLP. The form’s information must be complete and accurate. One will be required to pay a prescribed registration fee, the amount of which will depend on the partners’ contributions to the proposed LLP. The person specified in the incorporation paperwork who has a DIN will digitally sign the form after it has been filled out. Additionally, it needs to be digitally signed by a Chartered Accountant, a Company Secretary, a Cost Accountant, and an Advocate. If the Registrar is pleased with the form’s submission, the LLP will be registered. Fifteen to twenty days pass during the process.
- Limited Liability Partnership Agreement should be filed
The rights, obligations, and liabilities of the registered partners as well as those of the LLP and the registered partners are outlined in a contract. The LLP agreement must be submitted within 30 days of the incorporation date. It must be printed on a stamp paper with a different value for each state.
As per Section 2(m) of the LLP Act, 2008 Limited Liability Partnership Agreement means any written agreement between the partners of the Limited Liability Partnership or between the Limited Liability Partnership which determines the mutual rights and duties of the partners and their rights and duties in relation to that Limited Liability Partnership. Further, this model is the blend of the benefits given to a private limited company and a conventional partnership firm.
It goes without saying that an LLP Registration is an effective way to do business with the least amount of risk. The least expensive and safest type of business is a Limited Liability Partnership, as the name implies. An LLP is the best way for a business aspirant to enter the competitive corporate market. For LLP one needs to take registration through LLP Registration Process which is given in the LLP Act, 2008. LLP Registration Process is simple but its formalities makes it little tricky. Hence it is suggested to get the help of experts for completing your LLP Registration Process. In case you are wondering whom to choose for the same you can get in touch with Bizadvisors.io if you need any support with the LLP Registration Process.
Read our article:A Complete Overview of LLP Formation Procedure in India