A limited Liability Partnership (LLP) is a kind of partnership in any business enterprise where every participating member has limited liabilities. This indicates that no sole partner is accountable for any other partner’s carelessness, losses, or misbehavior.
As every partner has limited and not entire responsibility, it is called Limited Liability Partnership. Not like shareholders, partners have the right to handle the business. Due to such traits, the LLPs follow the aspects of partnerships and corporations.
The procedure of llp registration online:
LLP registration online is a quite simple procedure which can be summarized as stated below:
Step 1: Obtaining Digital Signature Certificate (DSC)
The primary step toward online llp registration is to obtain the digital signatures of every designated partner of the LLP.
A digital signature is needed as the LLP’s documents are filed online. These documents have digital signatures, which helps in getting a certificate.
Digital signatures can be acquired from certified government agencies, like IDRBT Certifying Authority, CDAC, National Informatics Center, E-MUDHRA, and NSDL. The cost of obtaining a DSC will be as per the certifying agency that the applicant has applied for.
Step 2: Reservation of the Name
For llp registration, the applicant must procure a Limited Liability Partnership-Reserve Unique Name (LLP-RUN) that can be proceeded at the Central Registration Centre.
Nevertheless, before quoting or citing the name, it is recommended to verify from the Ministry of Corporate Affairs (MCA) portal for a free name. This will render a list of companies with the similar names to a planned LLP. After the name is selected, the Registrar will approve the name that is not very alike to any accessible LLP. The LLP-RUN must be submitted with a fee that will ensue for the Registrar’s approval.
Step 3: LLP incorporation
Fill out the Form for incorporation of Limited Liability Partnership (FiLLiP) and submit to the Registrar for LLP incorporation. Fees have to be paid according to Annexure’ A’. Application for allotment must be allowed to be made by two individuals only.
Step 4: File Limited liability partnership Agreement
This agreement administers mutual rights and duties among the partners. The agreement can be filed in Form three online on MCA Portal.
Fill out form 3 for the LLP agreement within 30 days of incorporation.
LLP Agreement must be printed on stamp paper, wherein each state has their diverse stamp paper.
It takes around 15 days to acquire DSC and Form 3, subject to the accessibility of all the documents.
Documents for llp registration
The documents for llp registration online are similar to business setups. Mainly, there are two documents that must be submitted for the limited liability partnership registration – LLP documents and partners’ documents.
Documents of LLP Partners
All LLP partners must submit the following documents:
- A passport size photograph against a white background.
- PAN cards and Identity proofs of every partner.
- Address Proofs of partners that contain passport, Voter ID, or driving license.
- Passports of foreign nationals and NRIs and who can become partners in an LLP.
Documents of the LLP entity that must be submitted are:
- A Digital Signature Certificate (DSC)
- A proof of the registered office of address should be delivered at the registration time or within 30 days of the LLP incorporation. If the registered office is a rented facility, a NOC from the landlord is essential. Moreover, at least one proof of residence will require submitting utility bills no older than two months.
Price of LLP registration
Cost of the registration procedure is as follows:
DSC –Approximately1500-2000 INR for two partners
Name Reservation – 200 INR
Incorporation – Relies on capital contribution
Contribution up to 1 lakh –500 & Contribution between 1 and 5 lakh –2000 INR.
LLP Agreement – Relies on capital contribution.
Contribution up to 1 lakh –50 INR for filing Form 3 and stamp duty according to the state where LLP is generated.
Benefits of online llp registration:
- Limited Liability: The liability of the partners is limited, and it’s limited only to their Contributions.
- LLP can be effortlessly relocated to one person from another.
- No audit is needed to turnover less than 40 lakh INR and 25 lakh INR as a capital contribution.
- LLP has the right to own and transfer property, which can be conducted under their name.
- LLP’s continuation is still considered even after the demise of any partner
- LLP is an individual legal entity, and both the juristic person and partner who is not linked with the partnership can litigate each other or be sued.
- No dividend tax in llp registration online.
Eligibility Criteria to get online llp registration:
- The minimum age needed to form an LLP is 18 years, but a person below 18 can also be a member.
- A minimum of two individuals are needed to establish an LLP.
- No maximum limit of partners
- No minimum capital is needed to create an LLP, excluding stamp duty
- One individual should be an Indian dweller.
- Name individuality should be there for an LLP.
- The name should not be alike to the already current company.
Why do business owners choose LLP over Partnership Registration?
- LLP is a separate legal unit, while a Partnership firm is not the liability of partners is restricted to the amount of their Contribution. In partnership, the liability of partnership is not at all limited.
- LLP formation needs two designated partners. In Partnership, the maximum is 50 partners.
- LLP registration in india is compulsory and is conducted with the Ministry of Corporate Affairs, while Partnership firms are registered within the Registrar of firms.
- LLP’s name should be exceptional and duplicate any present name, but there is no limitation for utilizing a name in Partnership.
- The reliability of an LLP is higher than a Partnership firm.
Frequently Asked Questions:(FAQs)
Q.1 Is LLP registration in india necessary?
Ans.1 Yes, an LLP registration in india on the Ministry of Corporate (MCA) portal is compulsory. An LLP must acquire registration under the Limited Liability Partnership (LLP) Act to be an officially valid unit.
Q.2 What is the diversity between LLP and a Partnership Firm?
Ans.2 LLP must be registered under the LLP Act to conduct its business. Nevertheless, the Partnership’s firm registration is under the Partnership Act, 1932. The liability of every partner is limited to the partner’s contribution in an LLP. In a partnership company, every partner is personally liable for the debts/ loss of the firm.
The LLP has an individual legal unit, i.e., it can purchase property, sue, and be sued in its name. Partnership firms cannot purchase property or prosecute anyone in the partnership company’s name. It must be in the name of the authorized partner, as the partnership company does not have an individual legal unit.
Q.3 Does LLP need AoA and MoA?
Ans.3 No, the Articles of Association (AOA) and Memorandum of Association (MOA) are vital documents of a company registered under the Companies Act 2013. The LLP agreement governs the LLP and not the MOA and AOA. Therefore, an LLP does not need to draft the MOA and AOA. It must draft the LLP agreement.
Q.4 Are directors appointed to an LLP?
Ans.4 No, there are no directors in an llp registration in india. An LLP does not need to appoint directors or have a board of directors. The partners direct the business of an LLP. The partners consider decisions based on the business and working of the LLP. So, an LLP must have a
Minimum of two partners.
Q.5 What is DPIN?
Ans.5 Designated Partner Identification Number (DPIN) is a unique number provided by the MCA to the designated partner of an LLP. The DPIN is analogous to a company director’s Director Identification Number (DIN).
DPIN can be acquired for any person when registering an LLP, or a person can later apply for a DPIN to be a designated partner of a current LLP.
Q.6 What is the eligibility to be chosen as a designated partner in an LLP?
Ans.6 Any partner can be designated in an LLP by acknowledging it and working according to the LLP agreement. A corporate body cannot become a designated partner. Every partner can be designated in an LLP if a provision is given in the LLP agreement.
