In India, entrepreneurs are increasingly choosing Limited Liability Partnerships (LLPs) as their preferred organisational structure. The advantages of a company and a partnership firm are combined in an LLP. An LLP, as its name implies, is a partnership firm created by two or more participants who sign an LLP agreement. On the other hand, an LLP, like a company, enjoys perpetual succession and limited liability for its partners.

The idea for the LLP registration in India idea was first presented in 2008. The LLPs in India are governed by the Limited Liability Partnership Act, 2008. Incorporating an LLP requires a minimum of two partners. On the other hand, an LLP may have an unlimited number of partners.

Two designated partners, who must be natural persons and at least one of them must reside in India, should be present among the partners. The LLP agreement specifies the responsibilities and rights of authorised partners. They bear direct responsibility for ensuring that all clauses in the LLP agreement and the LLP Act, 2008 are followed.

Characteristics of LLP:

• Like businesses, it is a distinct legal entity.
• A minimum of two individuals must form an LLP as partners.
• The maximum number of partners has no upper bound.
• A minimum of two partners must be assigned.
• India must be the home country of at least one recognised partner.
• Each partner’s liability is capped at their individual contribution.
• The formation of an LLP is inexpensive.
• Fewer rules and compliance.
• Absence of a minimum capital contribution requirement.

Benefits of Limited Liability Companies:

• Distinct legal entity: LLP is a separate legal entity. The LLP and its partners are not the same. An LLP may get lawsuits under its own name. company win over the confidence of other parties and instills trust in its suppliers and consumers by signing the contracts in the LLP’s name

• Partners’ limited liability: The LLP’s partners’ liability is restricted to an end. This means that they are not personally responsible for any losses incurred by the company and are only obligated to pay the amount of their contributions. For the payment of the debts the LLP assets are important. The partners are free to conduct themselves like respectable businessmen because they are not personally liable.

• Minimal expense and reduced adherence: As compared to the price of establishing a public or private limited business, the setting up of an LLP is less expensive. It is important for LLP to follow certain compliances. Also, the filing of Annual Return and the Statement of Accounts and Solvency each year is important.

• Absence of a minimum capital contribution requirement: A minimum capital requirement is not necessary for the incorporation of an LLP. Also, minimum paid-up capital is not necessary in order to proceed with incorporation. It can be formed by any quantity of funds supplied by the partners.

Process for LLP registration in India:

In order to get your LLP registration in India done or in any other part of India whether it is LLP registration you need to follow certain steps listed below:

1. Get the Digital Signature Certificate:

The first step before getting your LLP registration done is to apply for the digital signature of the designated partners of the proposed LLP. This is because all LLP paperwork must be digitally signed and is filed online. Therefore, digital signature certificates from government-approved certifying agencies must be obtained by the chosen partner. The cost of DSC is determined by the certifying agency.

2. Request a DPIN, or designated partner identification number:

All designated partners or those planning to become designated partners of the new LLP must apply for their DPINs. In order to request a DPIN, the papers should also be signed by the company secretary, chartered accountant, or full-time practising cost accountant. A natural person can only be the LLP’s designated partner.

3. Authorization of Name:

After this, fill the Reserve Unique Name-Limited Liability Partnership, or RUN-LLP, a form that is submitted to get the name of a proposed limited liability partnership reserved. The Central Registration Centre will handle this process. However, it is advised that you use the MCA portal’s free name search tool before quoting the name in the form.

Once the search criteria are filled in, the system will provide you with a list of names of corporations or limited liability partnerships that are similar to each other. This list will help you choose those names that are distinct from those that currently exist. The Central Government must not find the name objectionable, nor can it be confusingly similar to any already-existing partnership firm, limited liability company, body corporate, or trademark. Only then would the registrar authorise the name.

If any errors are found, the form can be submitted again within 15 days for correction. Once the name gets approved by MCA, you have three months to apply for LLP incorporation.

4. LLP incorporation:

The FiLLiP (Form for incorporation of Limited Liability Partnership) is the form used for incorporation, and must be filed with the Registrar, who has jurisdiction over the state in which the LLP’s registered office is located. The form is going to be incorporated and the fees listed in Annexure “A” must be paid.

The form can be filled by the person who does not currently have DIN or DPIN.There will only be two people who can submit an allocation application. It is also possible to apply for a name reservation. Once the requested name is accepted, this reserved and accepted name will be filled as the proposed one.

5. Register a Limited Liability Partnership:

The rights and obligations that apply to each partner as well as to the LLP and its partners are governed by the LLP agreement. LLP agreements have to be submitted online via Form 3 on the MCA Portal. The LLP agreement’s Form 3 must be submitted within 30 days of the formation date. It is required to print it on stamp paper. Every state has a different stamp paper value.

Documents Needed for LLP Registration in India:

1. Partner Documents

• PAN card and Aadhar card
• ID Proof of partners other than Pan card
• Address Proof of Partners Other than Aadhar card
• Passport size Photograph
• Passport (in case of foreign Nationals/NRIs)

2. LLP Documents

• Proof of Registered Office Address
• Digital Signature Certificate of any Designated partner

Conclusion:

In order to get your LLP registration in India done or in any other part of the country, say LLP registration you need to follow the above-mentioned steps and require all the documents. If you want to get any assistance and guidance for the work, Patron Accounting is here to help you. You can contact us and our professionals will help you throughout the process.