If you want to start a business in India, but are confused about the process, then you’ve come to the right place. People often confuse LLP registration with private companies and hence, we’re here to explain what they mean. In the first place, if you want to start a business, we recommend you register it as an LLP because it has everything it needs to run a safe, risk-free business.
A private limited company, on the other hand, is only authorized to raise share capital, which is why we recommend it for those who wish to start a startup. As LLPs do not have the concept of shares, they cannot raise share capital.
Furthermore, the LLP registration procedure is online and requires no physical presence on the part of any member. For LLP registration, a simple set of documents is required. Once the LLP has been registered, an agreement must be prepared. There is little complexity involved in the running of LLP agreements, as once the LLP agreement is finalized, it needs to be printed on stamp paper as per state rules, duly stamped and signed by all the designated partners, and after that, uploaded to MCA as a will. For that reason, a proper LLP agreement is necessary to draft so that you can run your LLP in any way possible.
So forget everything, just register an LLP in India and start your business.
Process of Registration as New LLP
There are a few simple steps that can be followed to register for an LLP, as follows:
step: 1 Getting a Digital Signature Certificate (DSC)
LLP registration requires the digital signatures of all designated partners since the documents are filed online. Documents with digital signatures are further used to obtain certificates.
A digital signature can be acquired from certified government agencies, such as the National Informatics Center, the IDRBT Certifying Authority, E-MUDHRA, the CDAC, and the NSDL.
step: 2 Reserving the Name
For LLP company registration, the applicant must obtain a Limited Liability Partnership-Reserve Unique Name (LLP-RUN), which can be processed at the Central Registration Centre. However, it is always advisable to check the Ministry of Corporate Affairs (MCA) portal for a free name before citing or quoting. This will provide a list of companies with similar or the same names to a proposed LLP. It is crucial to choose a name that’s not too similar to any existing LLP. An LLP-RUN must be submitted along with a fee, and the registrar will then approve it.
Step 3: LLP incorporation
To incorporate LLP, a Limited Liability Partnership Form (FiLLiP) must be filled out and submitted to the registrar. Fees must be paid in accordance with Annexure A. An application for allotment can only be submitted by two individuals.
step 4: A Limited Liability Partnership Agreement
Form 3 for LLP agreements can be filed online on the MCA Portal to regulate mutual rights and duties. Each state has its own stamp paper for LLP agreements, which must be filed within 30 days of incorporation. LLP Agreements must be printed on Stamp Paper, which differs from state to state.
Documents of the partners
LLP partners will be required to submit the following documents:
- A copy of each partner’s identity proof and PAN card.
- Address proofs of partners, such as voter IDs, passports, and driving licenses.
- Photographed against a white background in passport size.
- LLP partners’ passports if they are NRIs or foreign nationals.
Documents of LLP
The LLP entity must submit the following documents:
- An official letter of address must be submitted with the registration of the LLP or within 30 days of its incorporation. In case the registered office is a rented facility, a landlord’s letter of authorization is required. You must also submit one proof of residence such as a utility bill that is no older than two months.
- DSCs are digital signature certificates
How to register an LLP: FAQs
The process of registering an LLP takes how long?
LLP registration takes approximately 15 days.
How much does it cost to register as a limited liability partnership?
There is a cost associated with registering an LLP. It can range from Rs. 2500 – Rs. 6000, depending on the number of partners and the capital contribution LLP company in India
Is there a minimum or a maximum number of partners in an LLP?
In the case of LLPs, there is no limit to the number of partners, whereas, in the case of partnerships, there is no limit to the maximum number of partners.
Can a body corporate be an LLP partner?
In an LLP, individuals and corporations can be partners.
How do I become a partner?
Any individual who is capable of contracting and literate enough to do so can become a partner. No major qualifications are required.