A Limited Liability Partnership (LLP) is a type of partnership firm in which each participating member has certain limitations on their responsibilities. This implies that no one partner is liable for the losses, carelessness, or improper behavior of any other partner. This type of partnership is known as a limited liability partnership since each member only bears a portion of the risk. Partners, as opposed to stockholders, have the authority to run the company. As a result of these traits, it can be claimed that LLPs appear to exhibit traits common to both corporations and partnerships.     

Because it combines the advantages of both a partnership firm and a company into one type of organization, limited liability partnerships have grown to be favored by entrepreneurs.  
 

Features of Limited Liability Partnership
 

• An LLP is a corporate body formed and incorporated under the LLP Act 2008.
• It is a separate legal entity from its partners.
• It is an artificial legal person because it is created by a legal process and is clothed with all rights of an individual.
• Similar to a joint stock corporation, an LLP has an endless succession.
• It operates through its partners and authorized partners and, if it chooses, may have a common seal.
• The partners' liability will be fixed at the amount of their agreed-upon contribution to the LLP. Such a contribution could be of a tangible or intangible nature, or perhaps both.
   

Simple Procedures for LLP Registration in India
 

The procedures of LLP registration can be summed up in the simple steps listed below.  
 

Step 1. Obtain Digital Signature Certificate (DSC)
 

Getting the digital signatures of each designated partner is the first step in forming an LLP. Due to the fact that the LLP’s documents are filed online, a digital signature is necessary. These documents have signatures, which further helps in obtaining a certificate.   
 

A certified Government agency, such as the National Informatics Center, IDRBT Certifying Authority, E-Mudhra, CDAC, or NSDL, can provide the necessary digital signatures. The cost of obtaining a DSC will depend on the certifying organisation for which the applicant has applied.   
 

Step 2. Apply for Director Identification Number (DIN)
 

All designated partners of the proposed LLP, or those who intend to become designated partners, must apply for their Director Identification Number. To make a request for the allocation of a DIN, submit the form DIR-3.
 

You must attach scanned copies of the required documents to the form (often Aadhaar and PAN). The application must be signed by either the Managing Director, Director, CEO, or CEO of the present company in which the applicant will be appointed as a director or by a company secretary who works full-time for the company.  
 

Step 3. Name Approval 
 

The applicant must get a Limited Liability Partnerships-Reserve Unique Name (LLP-Run) that can be processed at the Central Registration Center in order to register a prospective LLP. 
 

However, it is always advisable to check the Ministry of Corporate Affairs (MCA) portal for a free name before giving or quoting the name. This will give a list of businesses with names that are the same as or similar to a proposed LLP. The registrar will approve the name after it has been selected if it is not too similar to any other existing LLP. The LLP-RUN must be filed along with a fee, after which the registrar’s permission will be sought.     
 

Step 4. Incorporation of LLP
 

For the LLP Incorporation, you must complete the Limited Liability Partnership Incorporation Form (FiLLiP) and submit it to the registrar. You also need to pay the fees according to Annexure “A,”. Only two individuals are permitted to submit an application for allotment.
 

Step 5. File Limited Liability Partnership Agreement
 

This agreement governs the partners’ rights and obligations. On the MCA Portal, the agreement can be submitted online in Form 3. You must submit Form 3 within 30 days of the incorporation for an LLP agreement must be submitted. The LLP Agreement should be printed on stamp paper, which varies depending on the state.      

You can obtain DSC and Form 3 in around 15 days, provided that all the documents are available.  
 

Documents Needed to Submit for LLP Registration 
 

The documents needed to form your LLP are similar to that of the majority of business setups. However, for the registration of an LLP, two sets of documents, namely the LLP documents and the documentation of Partners, must be submitted.    
 

Documents of Partners
 

All Partners of the LLP firm need to submit the following documents:
 

• PAN card and Identity proof of all partners
• Address proof documents- Voter ID, Passport, or driving licence
• A passport-sized photograph with white background
• Passport of NRIs and foreign nationals who want to become partners in an LLP
   

Documents of LLP
 

The following documents related to the LLP entity you must submit are:
 

• You must submit the address proof of the registered office at the time of registration or within 30 days of the LLP incorporation. If the registered office is located in a rented space, a NOC from the landlord is required. Additionally, you will need to provide at least one residence proof, such as recent electricity bills (not older than two months). 
   
• A Digital Signature Certificate (DSC).   

FAQs

1. Is it necessary to register as LLP to start an LLP firm?
 

Ans. Yes, it is necessary to register an LLP on the Ministry of Corporate (MCA) web. To be a recognised legal body, an LLP must register under the Limited Liability Partnership (LLP) Act. 

2. What is the cost of registering as an LLP?
 

Ans. The cost of LLP registration depends on the number of partners and the capital contribution. 

3. What are the limitations on the minimum and the maximum number of partners required in an LLP?
 

Ans. A Limited Liability Partnership (LLP) requires a minimum of two partners with no limitation on maximum numbers. A partnership can have a minimum of two partners and a maximum of up to 50.

4. Who can serve as a designated partner in an LLP?  
 

Ans. Any individual partner may be appointed as a designated partner in an LLP according to the LLP agreement. In an LLP, all partners may be designated partners if the LLP agreement so specifies. 

5. In how many days is LLP registration completed?
 

Ans. It will take approximately 15 days to register as an LLP.

6. How many designated partners should be there in LLP?
 

Ans. Every LLP must have two designated partners, one of whom must be an Indian citizen. All body corporate partners in an LLP must designate at least two of their individual nominees to serve as designated partners. According to the LLP agreement, any partner may be a designated partner.