A Limited Liability Partnership is a sort of partnership in any kind of business organisation in which all members have limited obligations. This means that no one partner is liable for another partner's losses, carelessness, or misbehaviour. This is characterised as a Limited Liability Partnership since all partners have limited and not an entire obligation. In addition, partners, unlike shareholders, have the authority to operate the firm. Because of these traits, LLPs appear to have characteristics of both corporations and partnerships. The LLP company registration cost is less than any other type of corporation registration done in India.

Evolution of LLP in India

In 2008, the idea of a Limited Liability Partnership (LLP) was established in India. An LLP combines the features of a partnership firm and a corporation. In India, the LLP is governed under the Limited Liability Partnership Act of 2008. An LLP must be formed with at least two partners. On the other hand, an LLP has no upper restriction on the number of partners it can have.

There should be a minimum of two approved partners who must be persons, with at least one of them residing in India. The LLP agreement governs the rights and obligations of chosen partners. Therefore, they are directly accountable for ensuring that the terms of the LLP Act, 2008 and the LLP agreement are followed.

Benefits of Registering an LLP in India

A limited liability partnership is identical to a corporation because it exists independently of its participants. A limited liability partnership can be formed with any amount of minimum capital (LLP). However, the responsibility of the partners would be restricted to the amount they agreed to contribute to the LLP in India.

An LLP has the advantage of being easier to start up and operate, with fewer procedures required in the incorporation process. Furthermore, an LLP company registration cost is subject to cheaper registration fees than any other corporation, and no audit is required. As a result, annual ROC compliance is lower than for a private limited company.

Documents Required for an LLP Registration

The documentation necessary to register your LLP is similar to those required for other company formations. However, for the LLP registration, two sets of papers must be submitted: documentation needed of partners and LLP paperwork.

Partners' Documents

All LLP partners will be required to provide the following:

• All partners' identity documents and PAN cards.
• Address proofs from partners, such as a voter ID, passport, or driving license.
• A passport-sized picture on a white backdrop.
• Passports of NRIs and foreign citizens seeking to join an LLP.

LLP Documents

Documents connected to the LLP entity that must be filed are as follows:

• Proof of the registered office address must be supplied at the time of registration or within 30 days of the LLP's incorporation. If the registered office is rented, a landlord's NOC is required. In addition, at least one piece of evidence of residency, such as utility bills no older than two months, must be submitted.
• A Certificate of Digital Signature (DSC).

Why do company owners favour LLP formation over partnership formation?

• An LLP is a separate legal entity, whereas a partnership firm's liability is restricted to the amount of its contribution. The liability of a partnership is not restricted in a partnership.
• Two selected partners are required for the creation of an LLP. The maximum number of partners in a partnership is 50.
• LLP registration is required and is handled by the Ministry of Corporate Affairs, whereas the Registrar of Firms handles partnership firms.
• The name of an LLP should be original and not duplicate any existing name; however, there are no restrictions on utilising a name in a partnership.
• An LLP has greater credibility than a Partnership firm.

Criteria for Obtaining LLP Registration

• The minimum age to form an LLP is 18; however, anyone under the age of 18 can join as well.
• A minimum of two people are necessary to form an LLP.
• There is no maximum number of partners.
• Except for stamp duty, no minimum capital is necessary to establish an LLP.
• One individual must be an Indian resident.
• An LLP should have a distinct name.
• The name should not be identical to that of an already established firm.

The LLP Company Registration Cost in India

The capital commitment determines the LLP company registration cost. Accordingly, the MCA has established the following fee slabs:

• 500/- to form a limited liability partnership with a capital commitment of less than 1 lakh.
• 2000/- for the formation of a limited liability partnership with a capital commitment greater than one lakh but less than five lakhs.
• 4000/- for the formation of a limited liability partnership with a capital commitment in excess of five lakhs but less than ten lakhs.
• 5000/- for the formation of a limited liability partnership with more than ten lakhs in the capital.

Other Fees Involved in Forming an LLP in India

• The name of the LLP is reserved for 90 days, after which it expires.
• Digital signatures have fees for both designated partners determined by the certifying organisation.
• Fees for Registration Forms
• Fee for preparing an LLP agreement
• Fees for DIN forms
• Stamp duty on the execution of the LLP agreement, which varies per state
• Fee for agreement registration within 30 days after registration. This cost is based on capital contribution and will be charged a 100/- per day late fee if not reported within 30 days.

LLP Registration Process

Registering for an LLP is a straightforward process that may be summarised in the following steps:

Step 1: Obtain a Digital Signature Certificate (DSC)

The first stage in registering an LLP is to get digital signatures from all of the LLP chosen partners. Because the LLP's paperwork is filed online, a digital signature is necessary. In addition, these documents have digital signatures, which aids in the certification process.

Certified government entities such as the National Informatics Center, IDRBT Certifying Authority, E-MUDHRA, CDAC, and NSDL can provide the requisite digital signatures. The cost of obtaining a DSC will be determined by the certifying agency to whom the applicant has applied.

Step 2: Reserve a Name

The applicant must get a Limited Liability Partnership-Reserve Unique Name (LLP-RUN) that may be processed at the Central Registration Centre to establish a prospective LLP. However, before mentioning or using the name, it is always advisable to check for a free name on the Ministry of Corporate Affairs (MCA) web. This will provide a list of firms with names that are identical or similar to the proposed LLPs. Once a name has been selected, the registrar will accept it as long as it is not too close to any existing LLP. The LLP-RUN must be filed together with a fee before the registrar can approve it.

Step 3: Incorporation of the LLP

For LLP incorporation, a form for incorporation of a Limited Liability Partnership (FiLLiP) must be filled out and submitted to the registrar. Fees must be paid following Annexure 'A'. Only two people will be allowed to apply for an allocation.

Step 4: Prepare and file a Limited Liability Partnership Agreement

This agreement covers the partners' mutual rights and obligations. The agreement can be entered electronically in Form 3 on the MCA Portal. Form 3 for LLP agreement must be filed within 30 days of establishment. In addition, the LLP Agreement must be printed on Stamp Paper, which is different in each state.
Conclusion
The minimum number of partners needed to form an LLP is two. The maximum number of partners in a Limited Liability Partnership is unlimited. There should be a minimum of two approved partners who must be persons, with at least one of them residing in India.

The LLP agreement governs the rights and obligations of chosen partners. Accordingly, they are personally responsible for ensuring that the terms of the LLP Act 2008 and the LLP agreement are followed.