What is LLP?
LLP (Limited Liability Partnership) is a business structure governed by the Limited Liability Partnership Act, 2008. It combines the advantages of a partnership firm and a company.
In an LLP, partners have limited liability, and the LLP has a separate legal identity from its partners.
Benefits of Forming LLP
- Limited Liability Protection: Partners are liable only to the extent of their agreed contribution.
- Separate Legal Entity: LLP can own property, enter contracts, sue, and be sued in its own name.
- Lower Compliance Compared to Company: Compliance requirements are simpler than a private limited company.
- Flexible Management: Partners can manage the business directly with fewer restrictions.
- No Minimum Capital Requirement: LLP can be started with any amount of capital.
- Perpetual Succession: LLP continues to exist even if partners change.
- Better Credibility: An LLP structure provides more professional image compared to ordinary partnership firms.
Eligibility for LLP Registration
To register an LLP in India:
- Minimum 2 partners are required
- At least 2 designated partners required
- At least 1 designated partner must be an Indian resident
- Partners can be individuals or companies
- Registered office address in India required
- Designated partners must obtain:
1. DIN/DPIN
2.DSC (Digital Signature Certificate)
There is no maximum limit on number of partners.
Process of LLP Registration
Step 1: Obtain Digital Signature Certificate (DSC): Required for online filing on MCA portal.
Step 2: Apply for DIN/DPIN: Director/Designated Partner Identification Number for designated partners.
Step 3: Name Reservation: Apply for LLP name approval through MCA.
Step 4: File Incorporation Forms: Submit incorporation documents and details of partners.
Step 5: Obtain Certificate of Incorporation: After approval, MCA issues LLP Incorporation Certificate and LLPIN.
Step 6: Execute LLP Agreement: LLP agreement must be filed within prescribed time after incorporation.
Step 7: Apply for PAN & Bank Account: Obtain PAN, TAN, and open bank account in LLP name.
Documents Required for LLP Registration
Documents of Partners
- PAN Card
- Aadhaar Card
- Passport size photograph
- Email ID and mobile number
- Address proof
(Bank statement, electricity bill, passport, etc.)
Registered Office Documents
If Premises is Rented:
- Rent agreement
- Electricity bill/water bill
- NOC from owner
If Premises is Owned:
- Ownership proof
- Utility bill
Additional Documents
- Digital Signature Certificate (DSC)
- Consent of partners
- LLP Agreement
- Incorporation forms