What is a Limited Liability Partnership (LLP)?
Limited Liability Partnership (LLP) is a type of business partnership of any kind, where all participating members have limited liability. This means that no partner is responsible for the loss, neglect and/or abuse of any other partners. Since not all partners have limited and full liability, this is known as a limited liability partnership. Like shareholders, partners also have the right to manage the business. Because of these features, it can be said that LLPs represent both corporation and partnership features.
The registration process as a new LLP
Registering for an LLP is a relatively simple process that can be summarized in simple steps as mentioned below:
Obtain Digital Signature Certificate (DSC) - The first step towards registering an LLP is to get the digital signatures of all the designated partners of the LLP. A digital signature is required to fill out LLP documents online. These documents have digital signatures that further help in obtaining certificates. Required digital signatures can be obtained from certified government agencies, such as National Informatics Center, IDRBT Certifying Authority, e-Mudhra, CDAC and NSDL. The cost of taking DSC will be as per the certified agency applied by the applicant.
Book the name - To register a proposed LLP, the applicant must obtain a Limited Liability Partnership-Reserved Separate Name (LLP-RUN) to process at the Central Registration Center. However, before quoting or quoting a name, it is always better to check for a free name from the portal of the Ministry of Corporate Affairs (MCA). This will provide the proposed LLP with a list of companies with similar or similar names. Once the name is selected, the Deputy Registrar will approve the name which does not match any existing LLP. The LLP-RUN must be submitted with a fee which will be forwarded to the Registrar for approval.
Incorporation of LLP - For the establishment of an LLP, it is necessary to fill and submit to the Registrar for registration of Limited Liability Partnership (FLLP). Fees have to be paid as per Appendix ‘A’. Only 2 persons will be allowed to apply for an allotment.
File limited liability partnership agreement - This agreement governs the mutual rights and duties between the partners. The agreement can be submitted online in Form 3 on the MCA portal. Forms for LLP Agreement must be filled out within 30 days from the date of incorporation. The stamp of the LLP agreement has to be printed on paper, with each state having a different stamp.
Documents required for LLP registration
The documents required to register your LLP are the same as those required for most business setups. However, there are two sets of documents that will have to be submitted for LLP registration i.e. documents required for the partner and LLP documents.
1. Partner documents - All partners in the LLP are required to submit the following:
Identity cards and PAN cards of all partners.
Evidence of a partner including voter ID, passport or driving license.
Passport size photo on white background.
Passports of NRIs and foreign nationals wishing to become partners in
2. LLP Documents of LLP Documents related to the LLP component that is required to be submitted compulsorily are:
Proof of registered office address must be submitted at the time of registration or within 30 days of the establishment of the LLP. If the registered office is a rented facility, NOC from the landlord is required. In addition, at least one proof of residence must be submitted, such as utility bills older than 2 months.
Digital Signature Certificate (DSC)
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