Limited Liability Partnership (LLP) is an upgraded form of Partnership, which has limited liability features of a Private Limited Company and the flexibility of a Partnership firm. The maintenance cost of an LLP and simplicity in formation is one of the prime reasons why it has become a preferred choice for entity incorporation. You can easily commence your business by incorporating an LLP and get the combined benefit of a limited company as well as a partnership firm. Read more to know the process, documents required, and fees of LLP registration.
LLP is a form of partnership that is registered under the Limited Liability Partnership Act, 2008 where liabilities of all the partners are limited to the extent of contribution bought by them. It helps owners to limit their liabilities while enjoying the advantages of a limited company which is an edge over a traditional partnership firm.
No partner is liable on account of unauthorized actions of other partners, thus individual partners can safeguard them from joint liability arising from misconduct of other partners. LLP as an organization is mostly preferred by professionals, micro and small businesses.
Benefits of LLP Registration
Let’s take a look at the advantages of an LLP firm:
Separate Legal Entity: An LLP is a separate legal entity from its partners. It is a major advantage that is not available for normal partnerships.
Limited Liability: It helps in protecting the personal assets of the owners with limited liability protection.
No Minimum Capital required: An LLP can be formed with the least amount of capital as there is no minimum capital requirement for incorporating an LLP.
Minimal Compliances: One of the key benefits of registering an LLP is lower compliance requirements. Mandatory criteria for annual compliances of an LLP are on the lower side as when turnover is less than 40 lakhs, LLP audit is optional.
Checklist for LLP registration
There are certain minimum requirements for LLP registration that need to be met. Here's the quick checklist:
Minimum two partners
At least one partner should be a resident of India
DPIN for all designated partners
DSC for all designated partners
Each partner has to contribute towards the capital of LLP
Address proof for the office of LLP
LLP Registration Process in India
Step 1: Reserve your LLP Name
LLP RUN (Limited Liability Partnership-Reserve Unique Name) form is filed for reservation of proposed name. While making the name application, it is recommended that the name should not be similar, identical or phonetically similar to existing companies, firms, LLPs, and trademarks. You can easily check the name availability by using our LLP name search tool or company name search tool. If it fulfills all the prerequisites, the proposed name is approved by the Central Registration Center of the Ministry of Corporate Affairs if found in ordinance.
Note:It should be ensured that the business name does not resemble the name of any other already registered company and also does not violate the provisions of emblems and names (Prevention of Improper Use Act, 1950).
Step 2: Obtain Digital Signature Certificate
Limited Liability Partnership incorporation is a completely digital process and therefore the requirement of a Digital Signature Certificate is a mandatory criterion. All the designated partners of the proposed LLP need to apply for a DSC from the certified agencies. Obtaining a DSC is a completely online process and it can be done within 24 hours. This process involves 3 simple verifications that are document verification, video verification, and phone verification.
Step 3: Application for LLP
FiLLip form has to be filed with the registrar of companies for incorporation of Limited Liability Partnership. Details which has to be filed in the FiLLip form are:
Address of the registered office
Business activity code
Number of designated partners and partners
Personal details of designated partners and partners
Contribution of designated partners and partners
Certification by a professional (CA, CS, CMA)
Step 4: Issuance of COI (Certificate of Incorporation)
Post-approval of FiLLip form, Certificate of Incorporation is issued in form 16 from Central Registration Center of MCA under the letterhead of Government of India. LLP identification number is a part of the certificate of incorporation.
Step 5: Drafting & Filing of LLP Agreement
LLP Agreement is the most important document of an LLP that governs the mutual rights and duties of the partners; between the LLP & its partners. Drafting and filing of stamped LLP Agreement have to be made within 30 days from the date of issuance of incorporation certificate. Application for filing of LLP Agreement is made under Form 3 online on MCA portal. Failing to do so would attract penal provisions of the LLP Act, 2008.
Online LLP registration in India with Professional Utilities
The process of registering your business as an LLP is complicated and involves various compliances. Our experts at Professional Utilities can simplify the whole registration process for you. Register your company online in 3 easy steps:
Step 2: Provide all the required documents for registration of the company and make 50% payment in advance.
Step 3: Your incorporation certificate including other documents will be delivered to you and you’ll have to make the balance payment.
Documents required for LLP Registration
As per the Limited Liability Partnership Act 2008, you are required to provide proper identity proof of partners and address proof of office for LLP registration.
Documents of partners
Passport size photographs of all partners
Copy of PAN Card of all Partners
Copy of Aadhar Card
Passport (in case of Foreign Nationals or NRIs)
Copy of Driving License or Voter ID
Bank statement (not older than two months)
Documents of registered office
Electricity Bill or any other utility bill for the address proof
If it is a rented property, a No Objection Certificate from the owner of the property is required
Documents you’ll get after LLP registration
Post incorporation of LLP, you’ll receive the following documents:
Certificate of Incorporation
Company Master data
DSC and DPIN for designated partners
LLP Registration Fees
For registration of Limited Liability Partnership, the total cost involved in the whole process is described below:
DSC for one partner
DPIN for two partners
FREE of cost!
Depends on the state where LLP is formed. For New Delhi, stamp duty for capital contribution upto 1 lakh is ₹750.
Contribution upto 1 lakh -- ₹500
Contribution between 1 to 5 lakhs -- ₹2000
Contribution between 5 to 10 lakhs -- ₹4000
Contribution above 10 lakhs -- ₹5000
LLP Form 3
Contribution upto 1 lakh -- ₹50
Contribution between 1 to 5 lakhs -- ₹100
Contribution between 5 to 10 lakhs -- ₹150
Contribution above 10 lakhs -- ₹200
How much time is required for registering an LLP?
The LLP formation process takes around 10 working days subject to document verification by the Ministry of Corporate Affairs (MCA).
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What is LLP registration?
Limited Liability Partnership is a hybrid of partnership firm and private limited company. It has the features of limited company and flexibility of partnership.
How do I register an LLP?
You can arrange the required documents and fulfill all the requirements as per Limited Liability Partnership Act, 2008. You can opt for professional service easily from Professional Utilities as we simplify the registration process for you.
Is LLP registration compulsory?
Yes, if you want to run a business legally with your partners then you have to incorporate LLP. Otherwise, it would not be considered a registered firm until you get incorporation certificate from MCA and approval of LLP agreement from the Government of India.
What documents are required for LLP?
In order to register an LLP in India, you need to provide proper identity and address proof of all partners along with address proof of the registered LLP office.
Is GST required for LLP?
No, GST is not required for LLP registration.
How much does an LLP cost?
The cost of an LLP registration depends upon the no. of partners, capital contribution and location of the registered office. The standard fees for 2
Partners and capital contribution of upto 1 lakh would be around ₹4,999 (all included).
Which is better LLP or Pvt Ltd Company?
LLP and Pvt Ltd Company both have their own pros and cons. It completely depends upon the requirement of the business.
What are LLP Annual Filing?
LLP Annual filing includes following components: Annual Return Statement of the Accounts or you can say Financial Statements of the LLP Income Tax Returns Filings.