What Is a Limited Liability Partnership registration?
A Limited Liability Partnership or LLP is a modern business structure. It provides partnership benefits and limited liability protection. It is the best business structure for doing business together with other business partners. In a Limited Liability Partnership (LLP), Partners have limited liability like company shareholders but enjoy partnership flexibility. LLP registration in India has its own legal identity, separate from partners. In India, LLPs were introduced in 2008 under the Limited Liability Partnership Act. It is the best suitable businesses structure for the entrepreneurs since it requires less paperwork and legal compliance.
Benefits of LLP registration in India
Separate Legal Entity: An LLP has an independent legal identity like a private company. You can sign contracts in the name of LLP. This helps build trust with stakeholders.
Limited Liability: LLP provides a protection to the personal assets of the partners by limiting their liability to the shares held by them in the company. Partners are not liable for financial and legal matters in their personal capacity after registering LLP company.
Cost-Efficient and Less Compliance: Creating an LLP costs less than a company. You also need to file very few compliances regarding a LLP.
Tax Benefits: It is treated like a partnership firm when it comes to paying income tax. So, partners are exempted from paying income tax, only registered LLP company is liable for paying tax.
Credibility: LLP registration elevates the credibility of the business and attracts various kinds of investment opportunities along with clients.
No Investment: Like any other business structure, any minimum investment is not required in LLP registration in India. This provision makes it a good choice for beginners in starting their business. It is also exempted from paying stamp duty and audit fees.
Documents Required for LLP registration in India
Below are the essential documents needed for LLP registration
- You must produce PAN cards of all the partners of the company.
- You need to submit identity card of the partners, like Aadhar Card, Voter's ID, Passport, or Driver's License (any one of them).
- Address Proof of all thepartners are also required. You need to have documents, like bank statements, telephone bills, electricity bills, water bills, etc.
- Passport size photographs of all thepartners are also needed for limited liability partnership registration.
- In case, anyForeign national or NRI is partnering in an Indian LLP, then you need to submit their passport and proof of address, like a driver's license, bank statement, residence card, or government-issued ID with an address.
- Proof of Office Address of the LLP, if it is rented office, thenrent agreement and a no-objection certificate along with a recent utility bills with the complete address is required to register LLP company.
Digital Signature Certificate (DSC) of partners of LLP is also required.
Procedure for limited liability partnership registration
Here is the complete step-wise process for registration of limited liability partnership
Obtain a Digital Signature Certificate (DSC): All the partners of LLP need to obtain a DSC for limited liability partnership.
Get a Director Identification Number (DIN): It is a unique ID for directors or designated partners in LLP. You need to apply for DIN on the government website.
Choose an LLP Name: Pick a unique name for your LLP registration in India, following government guidelines.
Form for LLP Registration: It will contain all the essential information about the proposed company, like nature of business, partners of LLP, registered office address, and other things. It also need a declaration from partners for their consent to act as designated partners in LLP registration in India.
Prepare LLP Agreement: You will have to make a LLP agreement mentioning all the rights and duties of the partners. It must be notarized and submitted with the Ministry of Corporate Affairs within 30 days of official LLP registration.
Get a Certificate of Incorporation: After submitting all the forms and documents mentioned above for limited liability partnership registration. The Registrar of Companies (RoC) will issue the Certificate of Incorporation to you and thus it will be officially registered as LLP.
Proprietorship Registration
