Registering an LLP is easy and online. Talk to LLP Incorporation experts at setindiabiz to understand the eligibility requirements, cost and timeline, stepwise process, and List of Documents required for LLP Registration in India.
Limited Liability Partnerships (LLPs) are a new form of Partnership Structure introduced in India under the LLP Act 2008. The purpose behind its introduction is to overcome all traditional partnership flaws and provide a better alternative to startups. The flaws an LLP overcomes include unlimited liability, no separate management structure, and limited existence of the firm. These flaws bring immense challenges in operating a firm, and for the sake of a better alternative, an LLP was introduced.
| S.No. | Capital | DSC Cost | RUN | ROC Fee | PAN & TAN | Form – 3 Fee | Total |
|---|---|---|---|---|---|---|---|
| 1 | Upto ₹1,00,000 | 3990 | 200 | 500 | 143 | 50 | 4883 |
| 2 | 1,00,001 to ₹4,99,000 | 3990 | 200 | 2000 | 143 | 100 | 6433 |
| 3 | ₹5,00,000 to ₹ 9,99,999 | 3990 | 200 | 4000 | 143 | 150 | 8483 |
| 4 | ₹ 10 Lakhs or More | 3990 | 200 | 5000 | 143 | 200 | 9533 |
After incorporating the LLP, the partners must enter into an agreement outlining their capital contributions and profit-sharing ratios, among other details. The partners must execute The LLP Agreement on stamp paper of the appropriate value, depending on the capital contributions and the state of the LLP’s registered office. In most cases, we cannot assist with the notary and stamping of the LLP Agreement. However, our paid support is available in case the registered office of the LLP and all partners stay in cities where we have our offices, such as Bengaluru, Mumbai, Hyderabad, Noida, Gurugram, or Delhi. In that case, we can facilitate the purchase of stamp duty and notarization for an additional professional fee of ₹2500, plus the actual costs incurred.
The LLP is the simplest form of business in India and is primarily suitable for small service firms, such as engineering consulting firms, IT companies, architects, etc. An LLP is a unique business type that combines the benefits of a limited company and the simplicity of a partnership firm. We help you incorporate an LLP; however, let’s first understand the minimum requirements or eligibility to register an LLP.
A minimum of two partners is required for registration of an LLP. There is no cap on the maximum number of partners an LLP can have. The partners contribute capital contributions and share profits.
The overall management and control of the affairs of the LLP is with designated partners, who are also responsible for tax payments and compliance. Two to fifteen designated partners can be in an LLP.
As the designated partners are responsible for the overall compliance of the LLP, at least one designated partner of the LLP must be a resident of India every financial year to ensure accountability.
The name of the LLP must be unique and distinct from that of an already registered company, LLP, or trademark in India. We help you do a name availability search at the time of LLP Incorporation.
The LLP Act does not prescribe a minimum or maximum capital, which the partners must decide according to the business requirement. The capital affects the ROC Fee and stamp duty on the LLP Agreement.
The proposed main business activity of the LLP must be legal and well-defined. It should be included in the FILLIP Form at the time of LLP Incorporation and well described in the LLP Agreement.
The timeline for incorporation of an LLP depends on factors such as documentation, the availability of the name of the LLP by the ROC, and the number of partners. As a team, we have over two decades of experience and are better positioned to help with quick and efficient LLP incorporation in India.
Documentation & Making of DSC
The digital signature issuance process is online and Aadhar OTP-based. One of the requirements is for the applicant to get video authentication. We estimate a time frame of one to two days to obtain the DSC for all LLP partners.
Name Search & Main Objects Drafting
We help you thoroughly search for a suitable name for the LLP. It generally takes one to three days to discuss possible name availability with the promoters.
Filing for Incorporation
The application for LLP Incorporation is filed in the prescribed FILLIP form, with the Identity and address proof of partners and proof of registered office filed as attachments. This process can take one to two days after the name approval.
Incorporation Certificate
After submitting the FILLIP form, the ROC office checks the application and the attached documents. If everything is found to be in order, the LLP Incorporation Certificate is issued.
We at Tax81 understand the importance of correct documentation in ensuring a smooth and successful Incorporation of the Limited Liability Partnership (LLP). To make it easier for our clients, we have compiled a table below listing all the documents required for the LLP Incorporation process. In addition to the document list below, we request that you share information in a questionnaire that our startup advisor will send.
A recent colour photograph taken from the front against a clear, preferably white background is required from each partner of the proposed LLP.
The Income Tax Department in India issues the PAN Card, which is a mandatory document for Indian promoters to submit to the LLP. If foreign partners do not have one, a No PAN Declaration is filed.
Aadhar is mandatory for all LLP Indian partners. Ensure that the aadhar is linked to the PAN and mobile number for OTP-based verification during incorporation.
Any one of the below government-issued valid documents is considered an eligible identity proof document:
Every partner must submit current residential address proof that is not over two months old. Any of the documents below is acceptable address proof for the LLP Incorporation :
For the registered address, a lockable premises is required where the critical legal documents of the LLP will be kept after its incorporation. To provide proof of the premises, please submit any of the following documents that are sixty days from the filing date for LLP incorporation:
The premises owner must agree to allow the incorporation of a legal entity like an LLP on the premises. An NOC is required from the premises owner, which shall be submitted as an attachment at the time of filing for the LLP Registration. Please do not hesitate to ask for a sample NOC format.
With the digitisation of all MCA services, the LLP Registration process is entirely online and has become quicker, easier, and hassle-free. Here is the stepwise process
Documentation for LLP Incorporation
The LLP Registration process in India begins with preparing all the required documents, such as Partners Pan, Aadhar, Current address proof, and the address for registration of the LLP, along with NOC from the premises owner. Our expert advisors are available for assistance.
Make a Digital Signature for all the partners
After arranging all the required documents, the next step is to obtain the Digital Signatures of all partners. Digital Signatures are required to sign and authenticate the application for LLP Registration. Class 3 digital signature is required.
Select & Reserve a unique LLP Name
Your LLP's name should be unique and not identical to or similar to any existing company, LLP, or trademark in India. The proposed name should conform to the MCA guidelines. Once you have selected an appropriate name, you are required to get it approved and reserved by the ROC. You can use the FiLLiP or the RUN-LLP (Reserve Unique Name) forms. Both these forms are available on the MCA website.
Apply for LLP Registration Online
The online application for Limited Liability Partnership Registration can be found on the MCA website. You can fill out all the details once you access the application (FiLLiP). To complete it, also upload the scanned, self-attested copies of the documents. Next, attach a Class 3 Digital Signature of the authorised designated partner and submit the form after paying the prescribed fee.
Incorporation of LLP
The submitted application reaches the Registrar of Companies and, upon thorough examination, is either approved or rejected. If approved, the ROC immediately grants the LLP a Certificate of Incorporation, confirming its registration. In addition to the certificate, the LLP receives its LLPIN, PAN, and TAN.
Submit the LLP Agreement
The LLP Agreement is a constitution that defines the terms and conditions mutually agreed upon between its partners. It must be submitted within 30 days of incorporation, marking the completion of the process.
An LLP is the most suitable structure for small businesses in India, as there are fewer regulations to comply with. For instance, auditing its account books is optional until the turnover exceeds 40 Lac or the capital exceeds 25 Lac.
The decision to choose a business structure depends on several factors. These include the number of owners, amount of capital, mode and scale of operations, objective of business, etc. As an entrepreneur, we recommend that you closely analyse all LLP advantages and disadvantages before you decide. If you need further help, contact us.
LLPIN is a unique number allotted to the LLP by the Registrar of Companies for its identification. It is allotted after the LLP registration and mentioned on the Certificate of LLP registration as well.
Raising funds for an LLP is easier than for a traditional partnership. This is because it restricts the liability of its owners to a pre-fixed, mutually agreed-upon ratio. On the contrary, a conventional partnership burdens its partners with unlimited or 100% liability. Moreover, unlike a traditional partnership, the existence of an LLP does not depend on the life of its partners.
The capital in an LLP must be introduced by its partners. The share of capital contribution is mutually decided among partners and is mentioned in the LLP Agreement.
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