The Limited Liability Partnership (LLP) has become a popular choice among entrepreneurs since it combines the advantages of both a partnership firm and a corporation into a single entity.

In India, the concept of a Limited Liability Partnership (LLP) was first implemented in 2008. An LLP combines the advantages of a partnership firm and a corporation. In India, the LLP is governed under the Limited Liability Partnership Act of 2008. An LLP must have at least two partners to be formed. An LLP's maximum number of partners, on the other hand, has no upper limit.

Features Of LLP

• It has a separate legal entity just like companies.
• The liability of each partner is limited to the contribution made by the partner.
• The cost of forming an LLP is low.
• Less compliance and regulations.
• No requirement of minimum capital contribution.

The minimum number of partners to incorporate an LLP is 2. There is no upper limit on the maximum number of partners of LLP. Among the partners, there should be a minimum of two designated partners who shall be individuals, and at least one of them should be resident in India.The rights and duties of designated partners are governed by the LLP agreement. They are directly responsible for the compliance of all the provisions of the LLP Act 2008 and provisions specified in the LLP agreement. If you want to start your business with a Limited Liability Partnership, then you must get it registered under the Limited liability Partnership Act, 2008.

Benefits of an LLP

Here are the major reasons why people prefer the structure of an LLP for their business structure:

Limited Liability

The members of an LLP are only liable for a small amount of debt incurred by it. On the other hand, for proprietorships and partnerships, the personal assets of directors and partners are not protected if the business goes bankrupt.

Separate Legal Entity

An LLP is a separate legal entity from the partners in it. It has an uninterrupted existence that follows perpetual succession, i.e., the partners might leave, but the business remains. The terms of dissolution have to be mutually agreed upon for the firm to dissolve.

Flexible Agreement

Transferring the ownership of an LLP is also simple. A person can easily be inducted as a designated partner and the ownership switches to them.

Suitable For Small Business

LLPs having a capital amount less than ?25 lakhs and turnover below ?40 lakhs per year and do not require any formal audits. This makes Company Registration in India beneficial for small businesses and startups.

Eligibility Criteria

To be eligible for registering as an LLP, the following criteria must be met:

• At least two partners are required to form an LLP (no upper limit)
• If a body corporate is a partner, a natural person must be nominated to represent it
• Each partner must have an agreed contribution towards the shared capital
• LLP should have an authorised capital of at least ?1 lakh
• At least one designated partner should be an Indian resident
• Documents Required for LLP Registration

To register an LLP you need scanned copies of the following documents

For partners:

• PAN card or passport (foreign nationals or NRIs)
• Aadhar card/ voter’s ID/ passport/ driving licence
• Latest bank statement/ telephone bill/ mobile bill/ electricity bill/ gas bill
• Passport-size photograph
• Blank document with specimen signature.

Note: One partner must self-attest the first three documents. In the case of foreign nationals or NRIs, all the documents must be notarized (if currently in India or a non-commonwealth country) or apostilled (if from a commonwealth country).

For the registered office:

Utility bills

• Notarized rental agreement in English
• No-objection certificate from the property owner
• Sale deed/property deed in English (in case of owned property)
• How to Register an LLP Online with onlinelegalindia
• You can register LLP online through onlinelegalindia. While we make LLP registration a simple 3-step process for you, the actual registration process is elaborate and is explained below for your knowledge:

Step 1: Obtaining DSC And DIN

All the forms that need to be submitted online require the directors’ DSC. So, the first step in the process is to get DSCs and DINs for 2 partners. We collect the necessary information from you and file for them.

Step 2: Application For Name Approval

Simultaneously, we check if the name you want to register under is available and reserve it for your LLP. You can check for name availability in the MCA portal.

The approval of the name will be made by the registrar only if the central government does not deem it undesirable. The name should not hold any resemblance to any of the existing partnership firms, LLPs, trademarks, or body corporates.

Step 3: LLP Agreement

The next step is to draft the LLP agreement and other documents for registration. An LLP agreement is very crucial in a limited liability partnership as it determines the mutual rights and duties amongst the partners, and between the LLP and the partners. Thus, our experts take utmost care in drafting this agreement.

The partners enter into the LLP agreement upon registering the LLP by filing Form 3 online on the MCA portal. This procedure has to be done within 30 days of the date of incorporation. 

Step 4: LLP Incorporation Certificate

Our team will file the necessary forms and documents with the registrar. Once the registrar approves all the forms and documents, you get your LLP incorporation certificate and are almost set for running your business.

Step 5: Apply for Your PAN, TAN, & Bank Account

As soon as you get the incorporation certificate, we will apply for the PAN, TAN, and bank account for your LLP.

LLP Registration Package Inclusions

The following are included in Online Legal India’s LLP registration package:

• DSCs for 2 directors
• DINs for 2 directors
• Drafting of MoA & AoA
• Drafting partnership agreement
• Registration fees and stamp duty
• Company incorporation certificate
• PAN and TAN registration.

We also assist with

• A first free consultation, followed by subsequent support to clear every concern you may face
• Complete support on opening a current bank account
• Comprehensive and on-time updates on ROC compliances
• Online accounting software valid for one year
• A master file that contains all the documentation needed to file the incorporation
• You will also get a zero balance current account - powered by DBS bank

Conclusion

Limited Liability Partnership or LLP registration can be done online easily. LLP is becoming a preferable form of organisation for small business owners. In this blog, we discussed what an LLP is, how to register an LLP, the documents you need for LLP registration, and the time involved in the LLP registration process.