LLP Registration in India
Secure your business partnership with ease! Register your LLP in India today and enjoy the flexibility of a partnership with the protection of a corporation.
Introduction
A Limited Liability Partnership (LLP) is a popular organizational structure in India, combining the flexibility of a partnership and the advantages of limited liability provided to a corporation. This format is particularly favored by professionals, service providers, and small to medium-sized businesses that benefit from both partnership simplicity and corporate liability protection.
Eligibility and Requirements
To register an LLP in India, there are specific requirements that must be met:
01
Partners: There must be at least two partners, and there is no upper limit on the maximum number of partners. At least one designated partner needs to be a resident of India.
02
Digital Signatures: All designated partners need Digital Signature Certificates (DSC), as filings are done electronically.
03
Director Identification Number (DIN) or Designated Partner Identification Number (DPIN): Every designated partner is required to obtain a DIN or DPIN.
04
Name Approval: The proposed LLP name must be unique and not similar to any existing company or LLP. The name application is filed using the RUN-LLP (Reserve Unique Name - Limited Liability Partnership) service.
Steps for Registration:
Obtain DSC and DIN/DPIN
These are preliminary requirements for the proposed designated partners.
Name Reservation
File for the name approval through RUN-LLP service on the MCA portal.
Filing of Incorporation Document
Once the name is approved, file Form FiLLiP (Form for incorporation of Limited Liability Partnership) which includes details of the LLP’s partners, proposed business, and registered office.
Drafting LLP Agreement
An LLP agreement outlines the mutual rights and duties of the partners and between the LLP and its partners. This agreement must be filed within 30 days of incorporation using Form 3 on the MCA portal.
Certificate of Incorporation
Upon successful verification of the documents, the Registrar will issue a Certificate of Incorporation, and the LLP can commence its business operations.
Advantages of a LLP
01
Limited Liability: Partners’ liability is limited to their agreed contribution in the LLP and does not extend to personal assets, except in cases of fraud.
02
Flexibility: An LLP operates based on the agreement between partners, allowing significant flexibility in managing its internal affairs.
03
Tax Benefits: Unlike corporations, LLPs are not subject to dividend distribution tax, and profit sharing between partners is exempt from tax.
04
No Mandatory Audit Requirements: LLPs with a turnover less than INR 40 Lakhs and capital contributions less than INR 25 Lakhs are not required to get their accounts audited, simplifying compliance.
Post-Incorporation Obligations
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Annual Compliance: LLPs are required to file an Annual Return (Form 11) and Statement of Accounts and Solvency (Form 8) every year.
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Regular Updates: Any changes in the partnership or in partner details must be updated with the RoC
An LLP is ideal for businesses that prefer minimal regulatory compliance yet need organizational flexibility. It is particularly advantageous for start-ups and small to medium enterprises that seek limited liability while keeping the business operations straightforward and flexible.