Limited Liability Partnership Registration
Including Government Fee and Taxes
Limited Liability Partnership Registration
Concept of Limited Liability Partnership (LLP) was introduced in India by Limited Liability Act, 2008. The basic objective behind introducing concept of LLP was to provide Limited Liability to its members and at the same time it is easy to maintain. The unique feature of LLP is that one partner is not liable for the negligence or misconduct of another partner and it has combination of advantages of a Private Limited Company and Partnership Firm. Limited Liability Partnership is considered as separate legal entity and partners are liable only to the extent of their capital contribution.
How much does it cost to start a Limited Liability Partnership in India?
Checklist for LLP Registration
Here is the basic checklist for Incorporation of LLP in India
- Minimum two partners required
- 2 Class III Digital Signatures
- DIN for all the Partners – if you already have the DIN, make sure that the DIN is not disqualified and the eKYC is done.
- Name of LLP should be such that it does not resemble with the existing LLP Name or a Registered Trademark
- LLP Agreement should be filed in LLP Form 3 within 30 days of incorporation
Documents Required to Register LLP in India
The document requirement for LLP Registration can be divided into two sets, Documents for Registered Office Address proof and Documents for Partners.
Document for the Partners:
- PAN Card and Adhaar Card (Mandatory)
- Passport Size photo
- One of, Mobile Bill, Landline Phone Bill, Latest Bank Statement / Passbook, Electricity Bill of Partner as Address Proof
- One of, Passport, Driving License or Voter’s I’d Card as Identity Proof (PAN Card is not accepted as Identity Proof)
Documents for Registered Office Address proof:
- NOC from the owner of the proposed Registered Office premises is must
- Not more than two months old Gas, Electricity or Telephone bill depicting the address of the premises in the name of owner.
- If the proposed registered office is owned by a third person (other than Directors / Shareholders), a rent agreement may also be required.
How to Register LLP in India?
You can easily register your LLP with help of Ofin. The process is summed up in four easy steps as below:
- On receiving your request to start LLP we get in touch with you and collect necessary details and documents
- We file a request for name reservation with the MCA and simultaneously get your Class III Digital Signature Certificates
- On receiving confirmation of name reservation, we apply for incorporation of LLP within 3 to 5 working days. MCA takes between 3 to 7 working days to approve the incorporation application if there is no further document requirement.
- A deed of LLP is to be filed within 30 days of incorporation of LLP.
Advantages of Limited Liability Partnership
Separate Legal Entity:
- LLP is considered a separate legal entity and artificial judicial person as per the Act. Being an artificial judicial person, LLP can buy its own property and incur its own debts. Partners of the LLP have liability limited to their capital for debts of the LLP.
- Since LLP is considered as artificial judicial person, its existence is not affected by death, retirement or any other kind of departure of its partners. LLP continues its existence unless it is legally dissolved as per the provisions of Law.
- Auditing of books of accounts is not required if LLP has turnover of less than Rs. 40 lakhs or capital contribution of less than Rs. 25 lakhs. This saves cost and efforts of LLPs and its ideal for small businesses or new startups.
- Interest in LLP can be easily transferred by introducing new Designated Partner in LLP. LLP is a separate legal entity and changing a Designated Partner does not affect its existence.
Ownership of Property:
- Being an artificial judicial person LLP can buy property in its own name. The LLP is the owner of the property and partner cannot claim this property.
- Limited Liability of its Partners is one of the most important advantages of LLP. Unlike Partnership Firm or Proprietorship, liability of partner in respect of LLP’s debts is limited.
Capacity to sue and be sued:
- LLP is an artificial judicial person. Just like a person initiates legal proceedings against another person, LLP can also initiate legal proceedings against another person, Company or LLP.
- A person can be a partner, employee or creditor of a LLP. There are different contracts with the same person in different capacities.
FAQs on Limited Liability Partnership
Minimum two persons are required to start a Limited Liability Partnership. There is no upper limit of members of a Limited Liability Partnership.
Any person of 18 years and above can become Designated Partner of a Limited Liability Partnership. An individual of any nationality can become a Designated Partner in a Limited Liability Partnership. However, minimum one of the Designated Partner of the Limited Liability Partnership should be Indian resident.
There is no minimum requirement of capital to start a Limited Liability Partnership. Partners are a liberty to contribute through their tangible or intangible assets also.
No. Limited Liability Partnerships are setup for carrying on lawful business for profit.
There has to be an official address of the Limited Liability Partnership where all communication is received. This can be any commercial or industrial premises or residence of any person.
No. You need not visit MCA office or our office to incorporate a Limited Liability Partnership. You have to just send scanned copies of required documents by e-mail. Certain documents which are required in physical format may be sent through courier. We also provide free pickup of documents in some areas.
We need address proof, identity proof and PAN Card of all the designated partners of the proposed LLP. PAN Card of designated partner who is not an Indian national is not required. NOC from the owner of the place which will be the office of the LLP is required with proof of ownership, identity and address from the owner. Business Adviser from Ofin will guide you on list of documents.
With the help of Ofin you can incorporate your company in 15 to 20 days time. This depends
There is nothing like fast track incorporation. Processing time with the Government department is same for everyone. Yes, we can incorporate your LLP quickly by saving processing time at our back office. We request timely submission of documents from your end.
It is compulsory to sign certain forms and documents using a signature which is in electronic form. This is called Digital Signature Certificate. Digital Signatures are issued for a price by different companies which are authorized by Government.
Designated Partners of all the incorporated LLPs have to register themselves with MCA by providing some details. On receipt of those details MCA allots them a unique number. That number is called Designated Partner Identification Number (DPIN). There can be only one DPIN per person.
Yes, subject to Foreign Direct Investment (FDI) guidelines, a non-resident Indians or foreign nationals can become Designated Partners of Limited Liability Partnership.
Yes, you can convert your Partnership Firm or Private Limited Company to LLP. Converting a Partnership Firm to a Limited Liability Partnership has many advantages. However on conversion of a Private Limited Company to a LLP you may not get all the advantages.