LLP Registration in India: Documents required, Process, Time Taken, and Fees

Limited Liability Partnership as a business structure is governed by the Limited Liability Partnership Act, 2008. LLP registration in India is gaining popularity for starting a new business. The number of newly registered LLPs has outpaced the company registration in recent years.

The LLP structure offers the flexibility of a partnership firm and benefit of a limited liability offered under a private limited company registration. The LLP relatively has lower compliances and easy funds movement as compared to private companies. The Bizfoc professionals assist in LLP registration from start to end, which is completely online and hassle-free.

Table of Content

What do you mean by a limited liability partnership?

A limited liability partnership (LLP) is an alternative business structure that offers the partners limited liability of a company and a high amount of flexibility in collaboration. It is a hybrid business structure containing elements of both partnership firms and Company structure.

The LLP can continue its existence irrespective of partners coming and going and is capable of entering into contracts and holding properties in its name. It is a separate legal entity and is liable for its assets, and the liability of partners is limited to the amount they have invested in a firm. Most importantly, no partner is liable on account of the unauthorized actions of other partners. Thus, individual partners are protected from the joint liability created by another partner's misconduct and wrongful business acts.

Eligibility for LLP registration

The minimum requirement for LLP incorporation is as follows:

  • Two partners are minimum
  • Out of all partners, two minimum designated partners are required. A corporate body cannot be a designated partner.
  • One partner must be a resident of the country
  • LLP must have a registered office address
  • LLP must have business purposes
  • There is no minimum and maximum contribution defined in law. However, LLP should be incorporated with some contribution.

Documents required for LLP registration

Here are the LLP registration documents, which are required and divided into two sections:

    Address proof of the registered office:

    • Copy of a utility bill (electricity bill/Gas bill/Water bill/Broadband bill) that is not less than 2 months old. The registered office of the company can be commercial or residential. The utility bill should have the complete address of the premise.
    • NOC from the owner of the property

    Documents for Partners:

    • Aadhaar Card and PAN card of each partner
    • Copy of proof of partner’s residence - current bank statement or utility bill in the name of director, which includes the electricity bill, gas bills, broadband/telephone bill, etc., and not older than two months. Proof should have the complete address.
    • Passport-size photo of partners
    • In the case of NRIs or foreign nationals, a passport copy is mandatory
    • Note: If documents are not in english, then a notarized or apostilled transaction copy shall be attached.

Process for LLP registration

The procedure for the LLP registration are as follows:

  1. Name Reservation: The first step for LLP registration is to select a unique name and availability of the proposed name can be checked from the MCA Portal and trademark website. The proposed name is filed using RUN-LLP (Reserve Unique Name-Limited Liability Partnership) form. The name will be approved by the Registrar only if there are no trademarks and a similar LLP or company name exists. If the Registrar has disapproved the name for LLP registration, then there is an option of resubmission of the form within 15 days to rectify the errors. The name of the LLP shall end with either 'Limited Liability Partnership' or 'LLP.'
  2. Obtain a Digital Signature Certificate (DSC): Obtaining a class 3 DSC of all partners is a significant part of LLP registration. As the online LLP registration has to be done, all documents will be uploaded online along with the digitally signed ones. If any partner has a valid DSC, then there is no need to apply further, and the same DSC can be used. DSC is downloaded in physical tokens similar to pen drives.
  3. File LLP Incorporation form: For the LLP registration, FiLLiP (Form for incorporation of Limited Liability Partnership) is filed with the Registrar of the respective jurisdiction. The following documents and information are attached to the incorporation forms.
    • Details of all Partners
    • KYC documents of all Partners
    • Register office proof along with NOC
    • Consent form of all Partners
    • Certification by Practicing CA/CS
  4. Submit the Agreement of LLP: The LLP agreement governs the mutual rights and duties of partners inter se and those of the LLP and its partners. The form has to be filed mandatory within 30 days of the date of LLP registration. The LLP agreement has to be signed and notarized on stamp paper, as per the stamp duty that the state government prescribes. For instance, in the case of Delhi, the stamp duty for LLP registration will be 1% of capital contribution (minimum ₹200 and maximum it will be ₹5,000) whereas in Gurgaon (Haryana), the stamp duty for LLP resgitration is ₹1000 fixed.

Fees for LLP registration in India

The cost for LLP registration will be ₹6,499 which includes DSC making charges for two partners and professional charges but excluding GST charges.

Fees for LLP registration Amount in ₹
Professional Fee ₹ 2,999
DSC Making Charges for 2 partners ₹ 2,000
Government Fees & stamp duty ₹ 1,500
Total cost ₹ 6,499

Time Taken for LLP Registration in India

Overall time taken to register the LLP in India is 7-10 working days.

Activities Estimated Duration
LLP name approval 2 to 3 working days
DSC preparation 1 working day
Drafting LLP agreement and filing incorporation form 2 working days
LLP registration approval from MCA 2 working days

Documents issued after LLP incorporation:

  • Certificate of LLP incorporation
  • PAN and TAN number of the LLP
  • Digital signatures of all Partners in physical tokens
  • DIN number of all Partners
  • Notarised LLP agreement
  • Complete set of various forms and challans filed with MCA

Compliances of post LLP registration

Once LLP registration is done, post-incorporation compliance and registrations will need to be done. We at BizFoc, with the help of its profound, highly skilled, and qualified professionals, guide you further and support you in fulfilling the post-incorporation compliance by LLP:

  • Opening a bank account in the name of an LLP firm
  • To Conduct Board Meetings and pass resolutions appointing authorized signatories in LLP to do necessary filings
  • Obtaining necessary registrations like Trademark, GST, Shop Act, IEC, etc
  • File annual returns and financial statements, such as maintaining balance sheets, cash flow statements, and profit and loss statements, and look after the LLP’s financial health.

Advantages of LLP registration

The benefits of LLP registration in India are covered below:

  • Organized Business Structure: LLP is an organized business structure approved by the government body. Bankers and creditors prefer it due to its transparency of financials.
  • No Minimum Capital Requirement: LLP doesn't not require any minimum capital to start a business, as they can be established with the least possible capital.
  • Limited Liability of Partners: LLP partners have limited liability, which depends on their contribution. It means they are not liable to pay out from their assets because, during winding up and insolvency, only LLP's assets are liable to repay debts.
  • Higher Flexibility: As compared to other corporate structures, the LLP provides high flexibility to withdraw funds and take unsecured loans from third parties. Functions and profit distribution are written under the agreement between the partners of the LLP. It leads to flexibility in the business management system.

BizFoc: LLP registration consultant in India

BizFoc is a trustworthy LLP registration consultant in India. BizFoc has a team of CAs, CS & lawyers who are experts in recommending the right business structure customised to your startup requirements. The team will guide you through the process, pros, cost, time taken, & post incorporation compliance for starting a new LLP. BizFoc provides services related to incorporation and accounting related compliance under one umbrella so that you can focus on growing your business and making it successful.

Conclusion

Every partner of an LLP would be, for the business of the LLP, an agent of the LLP but not of the other partners. Liability of partners shall be limited except in case of unauthorized acts, fraud, and negligence. But a partner shall not be personally liable for the wrongful acts or omission of any other partner. The liabilities of the LLP shall be met out of the property of the LLP.

Frequently Asked Questions

What is the minimum capital for LLP registration in India?

For the LLP registration, no minimum capital is required; it can be incorporated with the least possible capital

Yes, an existing partnership firm can be converted to an LLP; you need to comply with the provision of clause 58 and Schedule II of the LLP Act, 2008. You need to file Form 17 along with Form 2 for the conversion and LLP registration.

Each partner must inform LLP regarding any changes made in his name or address within 15 days of such change. The partner needs to file Form 4 and notify the RoC within 30 days of such changes.

The LLP registration involves approval of name, making DSC for the proposed designated partners, making LLP agreement and form submission with MCA. You can visit BizFoc.com for more details.

Here are specific steps that need to be followed to check the status of LLP registration online:

  1. Visit the official website of MCA.
  2. From the main menu, select MCA services. The drop-down menu will open so that you can see the master data.
  3. Click on the Master data, then click on View Company or LLP master data.
  4. Fill in your company CIN, name of the company, and captcha to complete the MCA website and click on submit. Thus, here is the status of your LLP registration online.
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Yes, an LLP can appoint a CEO to manage the internal affairs of the company.

GST requirement for LLP is based on turnover and the services or goods that LLP offers. It is not a mandatory requirement.

Yes, partners can withdraw money from the LLP as per the terms and conditions mentioned in the LLP Agreement.

An NRI can serve as a designated partner in an LLP, provided they possess a Designated Partner Identification Number (DPIN). However, it's important to note that at least one designated partner in the LLP must be a resident Indian.

Yes, FDI is allowed in LLPs, subject to conditions. FDI is permitted for LLPs which are operating in sectors where 100% FDI is allowed under automatic route.

In LLP, there is no concept of equity. In LLP, only partners can contribute; hence, it can't raise funds from the public.

LLP audit is mandatory when turnover exceeds 40 lakhs, or the contribution of partners exceeds 25vlakhs

Yes, all LLPs, irrespective of turnover and business, are required to file annual forms with MCA annually

Every partner of an LLP would be, for the business of the LLP, an agent of the LLP but not of the other partners. Liability of partners shall be limited except in case of unauthorized acts, fraud, and negligence. But a partner shall not be personally liable for the wrongful acts or omission of any other partner. The liabilities of the LLP shall be met out of the property of the LLP.

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