Limited Liability Partnership (LLP) is a type of business structure in India that offers the benefits of both a partnership firm and a limited liability company. It was introduced in 2008, through the Limited Liability Partnership Act, 2008, and has gained popularity among entrepreneurs and small business owners due to its flexibility, low compliance requirements, and limited liability protection.
In this article, we will discuss the registration process for LLPs in India and the various documents and requirements that need to be fulfilled.
Eligibility Criteria:
- Any two or more individuals or companies can form an LLP, provided they fulfill the following criteria:
- Must be at least 18 years of age.
- Must have a valid PAN card.
- Must have a digital signature certificate (DSC).
- Must not be declared as insolvent or bankrupt.
- Must not have been convicted of any offence involving moral turpitude.
Registration Process:
The registration process for LLPs in India can be done online through the Ministry of Corporate Affairs (MCA) portal. The following are the steps involved in the registration process:
- Obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN):
The first step is to obtain a Digital Signature Certificate (DSC) and a Director Identification Number (DIN) for all the proposed partners. A DSC is used to sign the electronic documents required for the registration process, while a DIN is a unique identification number issued by the MCA to all directors.
- Reservation of Name:
Once the DSC and DIN are obtained, the next step is to reserve a unique name for the LLP. The name should not be identical or similar to the name of any existing company or LLP. The name reservation application can be filed with the MCA along with the prescribed fee.
- Preparation of LLP Agreement:
The LLP agreement is a crucial document that outlines the rights and duties of the partners, profit-sharing ratio, management structure, and other important aspects of the LLP. The LLP agreement must be drafted and signed by all the partners before filing the registration application.
- Filing of Registration Application:
After obtaining the name approval and preparing the LLP agreement, the registration application can be filed with the Registrar of Companies (ROC) along with the required documents and fees. The application must be filed within 60 days from the date of name approval.
- Obtaining Certificate of Incorporation:
Once the registration application is processed and approved by the ROC, a Certificate of Incorporation will be issued, which marks the official formation of the LLP. The Certificate of Incorporation contains the LLPIN (Limited Liability Partnership Identification Number) and the date of incorporation.
Documents Required:
The following documents are required for the registration of an LLP in India:
- Address proof of the registered office.
- Identity proof of all the partners.
- Proof of ownership or rent agreement of the registered office.
- LLP agreement signed by all the partners.
- Name approval letter.
- Incorporation document (Form-2).
- Consent of the designated partners (Form-9).
- Details of LLP (Form-11).
In conclusion, LLP registration in India is a straightforward and easy process that can be completed online through the MCA portal. It offers limited liability protection to its partners, minimal compliance requirements, and flexibility in terms of management structure and profit-sharing arrangements. Therefore, it is an excellent option for small businesses and startups looking to establish a legal entity in India.
