Limited Liability Partnership

LLP Registration in India was introduced in the year 2008. It is a hybrid model of both partnership and limited company structure. It differs from the conventional business structure that combines the benefit of a company and the flexibility of a partnership firm.

The LLP Company Registration is regulated by the Limited liability Partnership Act, 2008. According to this act, a minimum of two partners is required, and there is no upper limit as such. The LLP agreement clearly states the rights and duties of all the partners and all the provisions in the agreement are compiled and specified by the partners only. The prime reason for its evolution is that it shields one partner from the unauthorized actions of other partners while limiting their partnership liabilities. 

LLP structure is usually prioritized by the professionals or micro & small-scaled business owners or family-owned businesses.

Benefits of LLP Registration

• It safeguards the personal assets of the partners as the partners' liability is only liable to the amount that they had invested in it.
• The organization enjoys a legal separate entity, meaning it has an uninterrupted existence, which is followed by perpetual succession.
• There is no minimum capital contribution required for the LLP registration by the partners.
• Gets exemption from various taxes such as dividend distribution tax and minimum alternative tax. 
• Facilitates feasible management as the interest in LLP can easily be transferred by introducing a new Designated Partner.

The procedure of Limited Liability Partnership Registration

Step 1: Obtain Digital Signature Certificate (DSC)

Step 2: Apply for Director Identification Number (DIN)

Step 3: Fill LLP-RUN (Limited Liability Partnership-Reserve Unique Name) for the reservation of the name

Step 4: Incorporation of Limited Liability Partnership

• Fill FiLLiP(Form for incorporation of Limited Liability Partnership)
• Pay fees as per Annexure ‘A’.
• This form also provides for applying for allotment of DPIN, if an individual who is to be appointed as a designated partner does not have it.
• The application for allotment shall be allowed to be made by two individuals only.
• If the name that is applied for the firm is approved, then this approved and reserved name shall be filled as the proposed name of the LLP.

Step 5: File LLP Agreement

• Must fill the form 2 on MCA Portal for LLP company registration
• It must be filed within 30 days of the date of incorporation.
• The LLP Agreement has to be printed on Stamp Paper.

Documents for LLP Registration

A. For Partners

• PAN Card/ ID Proof of Partners
• Address & Residence Proof of Partners
• Photograph of Partners
• Passport (in case of Foreign Nationals/ NRIs)

B. For LLP

• Proof of Registered Office Address
• NOC by Landlord
• Utility Bills

Requisites of Limited Liability Partnership Registration

• Minimum of two partners
• DSC & DPIN for all designated partners
• Name of the LLP, which is not similar to any existing LLP or trademark
• Capital contribution by the partners of the LLP
• LLP Agreement between the partners
• Proof of registered office of the LLP

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