Limited Liability Partnership (LLP) Registration in India – Overview

Let's look at what are the basic LLP Registration requirements.

• Minimum Two People: Two people are required to register an LLP. And there is no limit on maximum number of partners.
• No Minimum Capital: Capital in case of LLP is invested based on the need of the business and contribution to partnership by partners. The amount of capital determines the Stamp Duty.
• Resident Person requirement: One designated partner of LLP must be a citizen of India.
• Unique Name: Name of the LLP should be unique and it must not resemble the name of any existing company.

Below mentioned is the list of documents needed for LLP Registration.

• Latest passport size Photographs of all partners
• Copy of PAN Card of partners
• Copy of Identity Proof of partners (Aadhar Card, Passport, Driving License or Voter ID Card)
• Address Proof of partners (Bank Statement or Passbook, electricity bill, telephone bill or any other utility bill)
• Registered Office Address Proof:NOC from the Owner of property to use it as the Registered Office of the Company, Copy of Rent Agreement (in case rented), Documents of Property ( if owned)
• Stamp paper for LLP Agreement of State where LLP is to be registered

NOTES:

• 1. All the Copies of documents must be self attested by the applicant
• 2. In case of non-Indian Nationals, the documents are required to be notarized from the home country.
• 3. The Telephone Bill / Mobile Bill/Electricity Bill / Bank Account Statement must be in the name of applicant and should not be older than 2 months.
• 4. In case of documents that are in languages except English, it should be translated to English with the help of a professional translator, carrying his details (name, signature, address, and seal).

LLP Registration Procedure can be divided into three stages and the steps involved are as follows:

Stage-I: Pre-Requisites

• Finalise Partners
• Finalise Designated Partners
• Determine the amount of capital contribution and profit-sharing ratio
• Draft Objects of the LLP
• Decide Names of the LLP
• Decide and finalise the State in which the LLP is to be registered.

Stage-II: Documentation and Registration

• Obtain Digital Signature Certificate (DSC) for Designated Partners/Members
• Obtain Director Identification Number (DIN) for all Directors
• Apply for LLP Name
• Letters of Consent from each Partner and Designated Partner
• Submit LLP Registration Documents (after name approval)
• Submission of LLP Registration Documents to the Registrar of Companies (ROC)
• Issuance of Registration and Certificate of Incorporation
• Application for PAN and TAN of LLP: PAN and TAN is to be applied
• Bank Account opening Support: An LLP must have a current account in its business name for business transactions

Stage-III: LLP Agreement

• Drafting of LLP Agreement by partners
• Filing of LLP Agreement with Registrar within 30 days of registering the LLP

• Convenient to set up: It is very easy to start an LLP and the requirements are minimal.
• No Minimum Capital Requirement: There is no minimum capital requirement in case of LLP. Capital in the form of tangible movable assets like land, machinery, or intangible form both are acceptable.
• No Limit on The Owner of The Business: For LLP minimum of two owners are required to start the business however there is no upper limit on the number of members. However, in the case of a private company, it cannot have more than 200 members.
• Lower Registration Cost: Registration cost of LLP as compared to Public or Private Company is less.
• No Requirement of Compulsory Audit: LLP is not obliged to get their books of accounts audited by a professional auditing firm. They are required to get the company audited in the case where the contribution of the LLP exceeds Rs. 25lakhs or when the annual turnover of LLP exceeds Rs. 40 lakhs.

Partnership business is registered under the Partnership Act, 1932. It is used to be a very popular form of Business Entity in India due to the simplicity of registration and easy maintenance. With the emergence of the Limited Liability Partnership (LLP) in India through the Limited Liability Partnership Act, 2008, the prominence of Partnership Business has been replaced by the LLPs.

Let us have a look at the difference between an LLP and a Private Limited Company.

Now let us go through some of the similarities between Pvt. Ltd and Limited Liability Partnership.

• Separate legal entity: Both of them have separate legal entity. That means Private Limited Company or LLP is treated as a separate and distinguished individual in the eyes of law.
• Benefits on taxes: Both types of business structures enjoy tax benefits of 30% from the profits.
• Limited Liability: In case of both Private Limited Company and LLP, the liabilities of the partners are limited.
• Registration Process: Pvt. Ltd registration and LLP registration are required to be registered with the Ministry of Corporate Affairs.

The processing time for registration of LLP companies takes about 15-20 working days.

The LLP Registration cost ranges from Rs. 6,000 to approx Rs. 15,000 depending on a number of factors.

If you are looking an online LLP consultant in India, TAX SEVA KENDRA is the suitable option for you. We have several years of experience in the service of LLP registration. Tax Seva Kendra has 200+branch offices in India and expanding its network. We are one of the most trusted LLP consultants in India.

Limited Liability Partnership (LLP) incorporation requires two partners, however there is no upper limit on the maximum number of partners of LLP. Of all the members any two partners should be individuals and at least one should be resident in India. The rights and duties of partners are governed by the LLP agreement. They are directly responsible for the compliance of all the provisions of the LLP Act 2008 and the provisions specified in the LLP Agreement. Tax Seva Kendra is a professional tax consultant that offers online registration at very affordable prices.