LLP Registration Process In India
LLP Registration Process In India – LLP Registration in India has evolved into an alternative company structure that combines the benefits of a corporation and the flexibility of a partnership firm into a single entity. The LLP Registration Process in India makes managing and incorporating a Limited Liability Partnership in India quite straightforward.
This one-of-a-kind hybrid system is ideal for establishing small and medium-sized enterprises. There is no upper restriction on the number of partners necessary to register an LLP. The LLP agreement also clarifies the rights and responsibilities of every partner. In an LLP, one partner is not liable for the other partner’s misbehavior or carelessness. The partners are accountable for all compliances and requirements outlined in the LLP agreement.
Advantages Of LLP Registration Process In India
- Compared to forming a corporation in India, the process for forming an LLP is less formal and simpler to start and administer.
- Compared to establishing a business in India, its registration fee and incorporation fees are cheaper.
- The minimum capital requirement for LLPs is quite low.
- An obligatory or compulsory audit is not required.
- The responsibility of the LLP partners would be limited to the sum of their pre-agreed contribution.
- Why Compared to forming a business in India, limited liability partnership compliance with the annual ROC is lower.
- Because an LLP may be structured and operated in a variety of ways, it is a superior instrument for venture capital investments and small firms.
LLP Registration Process Includes The Following Steps
- Obtaining A Digital Signature Certificate (DSC) – The accepted partners must electronically sign the LLP incorporation application. Each authorized partner is required to obtain their individual Digital Signature Certificate (or “DSC”) from a certifying organization as a consequence (CA).
- Applying Through The DIR-3 Form- Form DIR-3, which is accessible on the MCA website, must be used to apply. You will be needed to provide scanned copies of the necessary documents to the form (often Aadhaar and PAN). The application must also be signed by either a company secretary who is employed full-time by the business, or by the managing director, director, CEO, or chief financial officer of the present company in which the applicant would be appointed as a director.
- Approval Of The Name- To reserve a prospective LLP’s name, an LLP-RUN form must be submitted; the proposed LLP’s name cannot already be in use. You may use the MCA portal’s free name search tool to choose an appropriate name. There is a provision that permits two possible names for the LLP. The registrar may accept or reject this, which must be submitted with the required payments. The form may be submitted again within 15 days to correct any inaccuracies.
- Incorporation Of A LLP in India – An electronic form must be completed together with the required documentation to incorporate LLP once the name has been authorized. If a chosen partner does not have a DIN (Director Identification Number) or if the name has not yet been reserved, these modifications may be made using the incorporation form. A certificate of incorporation will be produced after e-form clearance.
- Agreement Submission For A LLP – Once the LLP has been created, the LLP agreement has to be presented in e-Form 3. The agreement specifies the LLP’s and the partners’ respective rights and duties. The agreement must be signed on stamp paper, the cost of which varies from state to state.
Documents Required For LLP Registration In India
You need two different types of paperwork for LLP Registration India. Here is all the information about the necessary paperwork.
Documents For Partners
- ID Proof: The PAN card of a partner is required as identification.
- Address Proof: An Aadhar card, voter ID, passport, or driver’s license are all acceptable forms of identification for partners’ addresses. The name and other details must be perfect matches to those on the PAN card.
- Residency Proof: For partners, recent bank statements, phone bills, cell phone bills, energy bills, or gas bills should be provided as proof of domicile.
- Photograph: Also, partners must provide a passport-size photo of themselves, preferably in front of a white background.
Foreign nationals and NRIs must also present proof of residence, which can be a driver’s license, bank statement, residency card, or any other document issued by the government that serves as identification and has an address.
Documents For LLP
- If the registered office is leased, a rent agreement and a landlord’s no objection certificate must be supplied within 30 days of the registered office’s establishment or at the time of registration.
- All utility bills, including those for gas, electricity, and telephone, must be submitted.
- The landlord’s consent for the LLP to use the premises as its “registered office” will be reflected in a no-objection certificate.
- The bill must be current and include both the owner’s name and the entire address of the property.
- Certificate for Digital Signature
Being your boss and starting your own business are liberating experiences that most people aspire to. This is one of the most crucial abilities you may have as an investor is knowledge of all your alternatives and the ability to select the best one. Therefore, understanding the different types of businesses and partnerships is highly important. Similarly to this, making informed judgments is essential to operating any business successfully.
In India, LLP registration is a new idea till now. But, because of the advantages they offer, they are gaining popularity in the Indian market. Legal Hub India is a dependable resource if you want to form an LLP in India using a hassle-free LLP registration process. We are committed to providing you with full assistance while you complete the legal registration.
Name: Legal Hub India
Address: # 1782, M.L.A. Road, Rajpura (Punjab) – 140401
Phone: +91 96460-01340