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Limited Liability Partnership (LLP) Registration in India

Explore all the details you need about Limited Liability Partnership (LLP) Registration in India, tailored for your needs.

Limited Liability Partnership (LLP) is a contemporary and advantageous business structure. Blending the strengths of partnership dynamics and the security of limited liability, an LLP offers a versatile platform for entrepreneurs to collaborate and innovate confidently.

Getting your LLP registered in India is super easy with Solocorp Verifocus Legal LLP. Many businesses trust us to help them register their Limited Liability Partnerships and ensure they follow the rules. Our team of experts will guide you through the online registration process from beginning to end. It's the fastest and cheapest way of LLP company registration. All you have to do is just reach out to us. Start now and set yourself up for a successful business future with LLP registration online.

What is an LLP ?

A Limited Liability Partnership (LLP) is a unique type of business setup that blends a partnership's and a company's features. In an LLP, partners enjoy limited liability, similar to shareholders in a company, while also benefiting from the flexibility and simplicity of a partnership. This arrangement grants the LLP its legal identity, allowing it to take legal actions and be subject to legal actions separately from its partners.

LLP Registration Prerequisites and Eligibility Conditions

To qualify for the LLP company registration in India, you must adhere to the subsequent criteria:

Minimum of Two Partners

Establishing a Limited Liability Partnership in India necessitates a minimum of two partners, with no upper threshold on the maximum number of partners.

Designated Partners

Within the partnership framework, at least two selected partners are obligatory, and they must be natural individuals. At least one of these designated partners must also maintain residency in India for an LLP incorporation.

Nomination for Body Corporate Partner

If a body corporate assumes the role of a partner, the designation of a natural person must act as its representative.

Agreed Contribution

Each partner is required to contribute the shared capital of the LLP, as stipulated and agreed upon.

Minimum Authorized Capital

To register LLP, it is mandated to possess an authorized capital of at least Rs.1 lakh.

Indian Resident Designated Partner

At least one designated partner of the LLP must hold a resident status in India.

Characteristics of Limited Liability Partnership (LLP)

Legal Identity

Like big companies, an LLP has a separate legal identity. This means it's seen as its own 'person' regarding rights and responsibilities, separate from those who own it.

At Least Two Partners

An LLP needs at least two people to start it. This teamwork helps in setting up the business and working together.

No Partner Limit

Unlike some other businesses, there's no highest number of partners an LLP can have. This makes it easy to grow and bring in more partners.

Two Designated Partners

A Limited Liability Partnership must have at least two 'main' partners. These people must be real individuals, and at least one should live in India.

Limited Responsibility

One big plus of an LLP is that if something goes wrong, each partner is only responsible for what they put in. So, personal things are safe from business problems.

Cost-Effective Start

To register LLP, costs less than setting up a big company. This makes it a great option for smaller businesses.

Less Rules to Follow

LLPs don't have to follow as many rules and regulations as big companies. This means less paperwork and less to worry about.

No Minimum Money Needed

Unlike big companies, you don't need a certain amount to start an LLP. Partners can invest what they can afford.

Advantages of Limited Liability Partnership (LLP)

1

Own Legal Identity

An LLP is like its own person, just like big companies. This helps people trust and work with it, as it can do legal things independently.

2

Less Risk for Partners

LLP partners are only responsible for what they put in. They don't have to pay for all the debts or losses, which is good for their reputation.

3

Saves Money and Time

To register LLP, the costs are less and have fewer rules than big companies. There's less paperwork to do every year.

4

No Fixed Money Needed

You don't need much money for LLP company registration. Partners can put in whatever amount they want.

Disadvantages of Limited Liability Partnership (LLP)

  • Getting in Trouble for Not Following Rules

    Even though LLPs have fewer rules, they can get big fines if they don't follow them on time. Even if an LLP doesn't do anything in a year, it still needs to tell the government or get fined.

  • Ending an LLP

    An LLP needs at least two partners. It must stop if it has fewer than two partners for six months. Also, it might have to close if it can't pay its debts.

  • Hard to Get Big Money

    LLPs don't work like big companies where people invest money and become owners. This makes it tricky to get a lot of money from investors.

Limited Liability Partnership (LLP) Name Structure

Choose a unique name that is not used by other businesses. This makes approval easier and establishes your identity. Include words that clearly describe what your business does. This helps people understand your services or products.

End your LLP name with "LLP" or "Limited Liability Partnership." This is necessary to show your business structure and essential part of your LLP registration process.

Documents Required for LLP Registration

To initiate the LLP company registration process, partners are required to furnish the following documents:

PAN Card/ID Proof of Partners

Address Proof of Partners

Residence Proof of Partners

Passport-size Photograph

For Foreign Nationals and NRIs

Proof of Registered Office Address

Digital Signature Certificate (DSC)

Procedure for LLP Registration in India

The process of incorporating a Limited Liability Partnership (LLP) in India involves several key steps, each crucial for ensuring that the LLP is legally established and compliant. Below are the detailed steps for registering an LLP online.

1

Step 1: Obtain a Digital Signature Certificate (DSC)

All proposed partners of the LLP must obtain a Digital Signature Certificate (DSC), as all government filings require digital signatures.

2

Step 2: Obtain Director Identification Number (DIN)

Partners without a DIN need to apply for one. The Director Identification Number (DIN) is a unique identification number assigned to individuals aspiring to become directors or designated partners in LLPs.

3

Step 3: Choose a Name for the LLP

Select a unique and suitable name for your LLP registration online, adhering to the Ministry of Corporate Affairs guidelines to avoid rejection.

4

Step 4: Submit Form for LLP Incorporation (FiLLiP)

Fill and submit the FiLLiP form, which gathers essential information about the proposed LLP, partners, LLP agreement, and registered office address. The form also includes a declaration from the partners agreeing to act as designated partners and comply with LLP regulations.

5

Step 5: Draft and File LLP Agreement

Create the LLP Agreement, which outlines the rights, duties, and obligations of the partners. This agreement must be notarized and filed with the Ministry of Corporate Affairs within 30 days of LLP incorporation.

6

Step 6: Obtain a Certificate of Incorporation

Once the forms and documents are submitted and verified, the Registrar of Companies (RoC) will issue the Certificate of Incorporation, officially recognizing the LLP's existence.

7

Step 7: Apply for PAN and TAN

After receiving the Certificate of Incorporation, apply for the Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the LLP.

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