Limited Liability Partnership (LLP) is a separate legal entity that gives the benefit of Limited Liability of Company plus the flexibility of partnership, wherein no partner is held liable on account of misconduct of other partners. Their rights and duties to be governed by LLP agreement. Limited Liability Partnership has been introduced in India by way of Limited Liability Partnership Act, 2008. The basic premise behind the introduction of Limited Liability Partnership (LLP) is to provide a form of business organization that is simple to maintain while at the same time providing limited liability to its partners.
Digital Signature Certificate (DSCs) for 2 Partners
Director Identification Number (DINs) for 2 Partners
Limited Liability Partnership Agreement
Limited Liability Partnership Registration Certificate
Limited Liability Partnership Registration Master File
Requirements for Opening Bank Account of Company
Obtain DSC & DINs for Proposed Partners: (Usually 2-3 working days)
Obtain Digital Signature for all the Partners – A Limited Liability Partnership must have at least 2 Directors, all the proposed partners must apply for Digital Signatures and Obtain Director Identification Numbers (DIN).
Note: Obtaining of DSC is not mandatory if any of the proposed partners are already having DIN. In such case at least one proposed partner must have DSC.
Selection & Approval of proposed name :(Usually 2-3 working days)
We have to choose Unique Names which are not identical or similar to any other existing LLP or companies or registered Trade Marks. We request you to furnish at least 3 different and unique names. Based on the names given, we will file application (Form -1) for name approval. Usually it takes 2-3 working days for name approval.
Preparation of Registration Docs, forms & submission:
Based on the name approved, we will prepare the LLP agreements and other required Documents and will send them for your signatures. Once we receive the signed documents from your end we will prepare the incorporation forms (Form -2 ) and submit to the ROC.
The ROC will scrutinize the forms along with attachments and approve if it is in order. If any additional information is required by department, we have to resubmit the documents and information as required by department.
Obtain Certificate of Incorporation :
Up on Approval, We receive, Certificate of Incorporation. Once the LLP is registered we have to submit LLP agreement with ROC within 30 days from the date of registration.
Name of the proposed LLP (min 3 alternative names required & name must be unique and should not similar to existing limited LLP / companies names
Main business activities of the proposed LLP
There must be minimum of 2 partners
Address of the LLP to be registered (Municipal Tax Receipt and Power bill (Recent) both are required and address must be clearly visible)
Rental deed if rented premises and No objection letter, if it is not owned from the owner of the premises to be used as registered office
DIN numbers for all the partners
Digital Signature Certificate for all partners (If any Partner is already had DPIN/DIN, then there is no requirement of DSC for all partners)
Passport photos – 3 of each partner
PAN Card Copy of all the partners (PAN is not required for Foreign Nationals or NRI having citizenship of any country other than INDIA)
Email & Mobile no of all the partners (for mentioning in DSC & DPIN applications)
Educational Qualification and place of birth of all partners
ID & Address proofs of proposed partners
Separate Legal Entity
A LLP is a legal entity and a juristic person established under the Act. The partners are distinct from the entity and both can sue each other and get sued in the process.
A LLP has ‘perpetual succession’, that is continued existence until it is brought on the terms of the dissolution by mutual agreement within the partners. Partners may come and go, but an LLP goes on.
Audit not Required
Entrepreneurs earning a turnover of less than 40 Lakhs and capital contribution of less than 25 Lakhs need not get their accounts audited .Therefore, LLPs are ideal for startups and small businesses that are just starting their operations and want to have minimal regulatory compliance related formalities.
The ownership of a LLP can be easily transferred to another person. All you need is to induct them as a designated partner of the LLP. LLP is a separate legal entity separate from its managing partners, so by changing the managing partners, the ownership of the LLP can be changed.
An LLP being a juristic person, can acquire, own and enjoy property in its own name and this is entirely distinct from its partners. No partner can make any claim upon the property of the LLP so long as the LLP is a going concern.
The biggest advantage is Limited Liability, which means the status of being legally responsible only to a limited amount for debts of a LLP. Unlike proprietorships and partnerships, in a LLP the liability of the members in respect of the LLP’s debts is limited to the extent activities done by the partners.
Limited Liability Partnership
A Limited Liability Partnership is a partnership in which some or all partners have limited liabilities. It therefore exhibits elements of partnerships and corporations.
Designated Partner Identification Number is a registration required for any person who wishes to be appointed as a Designated Partners of a Limited Liability Partnership (LLP).
DIN is Director’s Identification Number and DPIN is Director’s Partner Identification Number both are same. DIN is mandatory required by person for becoming director of company. DPIN is required by partners of LLP to become partner in LLP. If you have DIN then no need to apply for DPIN as DIN is valid for becoming partner in LLP.
At least two partners are required for LLP registration. The maximum partners can be 200. If you are the sole owner, you can register as a One Person Company.
Any Individual/Organization can become the partner in LLP including foreigners/NRI. However, the individual must be above 18+ in terms of age and should have a valid PAN Card.
Our procedure is 100% online which means there is no compulsion for you to be present at our office physically. A scanned copy of documents can be sent to us via mail, and we will handle the rest. You will get the company incorporation certificate from MCA via courier at your business address.
We do not have any hidden charges. Our system is quite transparent. After making your payment, we will send you an invoice that is all-inclusive, with no hidden charges. Our team provides you support till you get your LLP bank account.
You need to have a bank account with a minimum balance, which could be as little as Rs. 5000. You need not invest any more capital in starting the business. You needn’t even deposit this amount to the bank. You can also show that the capital has been utilized as the pre-incorporation expenses of LLP e.g., LLP registration expenses. You can also show this capital has been infused in form of assets such as computers etc.
Yes, but only after he has been assigned with DIN/DPIN. However, at least one designated partner in LLP must be a resident of India. In fact, the foreign director can also be a majority shareholder in the company
Yes, you can register your LLP at your residential address. It is perfectly legal to start the company at your home or in your garage. MCA team typically doesn’t visit your office. You just have to provide your home address proof such as rent agreement or electricity bill.
Yes, you as a salaried person can also become a partner in LLP. You need to check your employment agreement if that allows for such provisions. In most cases, employers are comfortable with the fact that their employee is a director in another company.
No, you can’t convert your LLP into a Private Limited Company as it is not MCA. Both the LLP Act, 2008 and the Companies Act, 2013 don’t have any provisions on conversion of LLP in a Private Limited Company. However, if you want to expand your business you can register a new Private Limited Company with the same name as that of the LLP. The LLP Company just needs to issue a No Objection Certificate.