LLP Registration is an upgraded form of Partnership, which has limited liability features of Private Limited Company and the flexibility of a Partnership firm. 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.
LLP is a form of partnership which is registered under Limited liability Partnership Act, 2008 where liabilities of all the partners is limited to the extent of contribution bought by them. It helps owners to limit their liabilities while enjoying 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 than its partners. It is a major advantage that is not available for normal partnerships.
Limited Liability: It helps in protecting personal assets of the owners with limited liability protection.
Lower cost: The cost of registering an LLP is comparatively lower than public/private limited companies.
No Minimum Capital required: An LLP can be formed with 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 requirement. Mandatory criteria for annual compliances of an LLP are on lower side as when turnover is less than 40 lakhs, LLP audit is optional.
Procedure of LLP Registration 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 fulfils 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 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). You can easily check the name availability by using our LLP name search tool to verify the same.
Step 2: Obtain Digital Signature Certificate
Limited Liability Partnership incorporation is a complete digital process and therefore requirement of Digital Signature Certificate is a mandatory criteria. All the designated partners of the proposed LLP need to apply for a DSC from the certified agencies. Obtaining a DSC is a complete 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 certificate of incorporation.
Step 5: Drafting & Filing of LLP Agreement
LLP Agreement is the most important document of an LLP which governs the mutual rights and duties of the partners; between the LLP & its partners. Drafting and filing of stamped LLP Agreement has 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 LLP Act 2008.
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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 the resident of India
DPIN and DSC for all designated partners
Each partner has to contribute towards capital of LLP
Address proof for the office of LLP
Documents required for LLP Registration
As per 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, No Objection Certificate from the owner of the property is required
What are the documents you’ll get after registration?
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 two partners
Around ₹ 3000
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 Rs. 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 days.
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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 Rs. 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.