LLP Registration in India @ ₹ 1,999/-
Introduction to Limited Liability Partnership
Limited Liability Partnership (LLP) Registration in India
A Limited Liability Partnership (LLP) is a business structure governed by the Limited Liability Partnership Act, 2008. LLP registration in India has become increasingly popular for entrepreneurs starting a new business, with the growth rate of newly registered LLPs surpassing that of private companies in recent years.
The LLP structure combines the flexibility of a partnership firm with the limited liability benefits of a private company. Compared to private companies, LLPs involve lower compliance requirements and allow easier movement of funds.
At BizCatalyst Technologies, our professionals provide end-to-end assistance for LLP registration, ensuring the entire process is completely online, smooth, and hassle-free.
What do you mean by a Limited Liability Partnership?
A Limited Liability Partnership (LLP) is an alternative business structure that combines the limited liability of a company with the flexibility of a partnership. It is a hybrid structure, incorporating features of both partnership firms and companies.
An LLP has perpetual succession, meaning it continues to exist regardless of changes in partners. It can enter into contracts, own property, and conduct business in its own name. As a separate legal entity, the LLP is liable for its own assets, while the liability of individual partners is limited to their capital contribution.
Importantly, no partner is personally responsible for the unauthorized actions or misconduct of other partners. This protection ensures that partners are shielded from liabilities arising from wrongful acts or business decisions of their co-partners.
Eligibility for LLP registration in India
Minimum Requirements for LLP Incorporation in India
To incorporate a Limited Liability Partnership (LLP) in India, the following requirements must be met:
Minimum Partners: At least two partners are required.
Designated Partners: A minimum of two designated partners is mandatory. A corporate body cannot act as a designated partner.
Resident Partner: At least one partner must be a resident of India.
Registered Office: The LLP must have a registered office address.
Business Purpose: The LLP must be formed for lawful business purposes.
Capital Contribution: While the law does not specify a minimum or maximum contribution, the LLP must be incorporated with some initial contribution from the partners.
Documents required for LLP registration in India
Documents Issued After LLP Registration in India
After successful registration of an LLP in India, the following documents are issued:
Certificate of LLP Incorporation
PAN and TAN of the LLP
Digital Signatures (DSC) of all partners in physical tokens
DIN (Designated Partner Identification Number) of all partners
Notarised LLP Agreement
Complete set of forms and challans filed with the Ministry of Corporate Affairs (MCA)
Compliances of post LLP registration in India
Post-Incorporation Compliance for LLPs
After LLP registration, several post-incorporation compliances and registrations must be completed. At BizCatalyst Technologies, our team of highly skilled and qualified professionals assists LLPs in meeting these requirements efficiently:
Opening a Bank Account: Set up a bank account in the name of the LLP for all financial transactions.
Board Meetings and Resolutions: Conduct meetings and pass resolutions to appoint authorized signatories for necessary filings and approvals.
Obtaining Registrations: Secure essential registrations, including Trademark, GST, Shop Act, IEC, and others as required.
Annual Returns and Financial Statements: File annual returns and maintain financial statements, including balance sheets, cash flow statements, and profit & loss accounts, ensuring the LLP’s financial health and compliance.
Fees for LLP registration in India
The cost of LLP registration in India is ₹5,342, which includes DSC creation charges for two partners and professional fees. GST charges are not included in this amount.
Fees for LLP registration
- Professional Fee
- DSC Making Charges per partners
- Run + FiLLiP Form
- Total
Amount in ₹
- ₹ 1,999
- ₹ 2,500
- ₹ 843
- ₹ 5,342
Process for LLP registration in India
Procedure for LLP Registration in India
The process for registering a Limited Liability Partnership (LLP) in India involves several key steps:
1. Name Reservation:
The first step is to select a unique name for the LLP. The availability of the proposed name can be checked on the MCA Portal and the Trademark website. The name is reserved using the RUN-LLP (Reserve Unique Name – Limited Liability Partnership) form.
The Registrar approves the name only if it does not conflict with existing trademarks or the name of another LLP or company.
If the name is disapproved, the form can be resubmitted within 15 days after correcting errors.
The LLP name must end with either “Limited Liability Partnership” or “LLP.”
2. Obtain a Digital Signature Certificate (DSC):
A Class 3 DSC is required for all partners to complete the online registration. All documents must be digitally signed before submission.
If a partner already has a valid DSC, it can be reused.
DSCs are issued in physical tokens, similar to USB drives.
3. File LLP Incorporation Form (FiLLiP):
The FiLLiP form (Form for Incorporation of Limited Liability Partnership) is filed with the Registrar of Companies (ROC) in the respective jurisdiction. The following documents and information must be attached:
Details and KYC documents of all partners
Registered office proof along with NOC (No Objection Certificate)
Consent forms from all partners
Certification by a practicing CA or CS
4. Submit the LLP Agreement:
The LLP Agreement governs the mutual rights and duties of partners and those of the LLP itself. It must be filed within 30 days of LLP registration using Form 3 on the MCA Portal.
The agreement must be signed and notarized on stamp paper, as per the stamp duty prescribed by the state government.
For example, in India, the stamp duty is 1% of capital contribution (minimum ₹200, maximum ₹5,000), whereas in Gurgaon (Haryana), a fixed stamp duty of ₹1,000 applies.
Time Taken for LLP Registration in India
The overall LLP registration process in India typically takes 7–10 working days to complete.
Activities
- LLP name approval
- DSC preparation
- Drafting LLP agreement and filing incorporation form
- LLP registration approval from MCA
Estimated Duration
- 2 to 3 working days
- 1 working day
- 2 working days
- 2 working days
Advantages of LLP registration in India
Benefits of LLP Registration in India
1. Organized Business Structure:
An LLP is a recognized and organized business structure approved by the government. Its transparency and credibility make it preferred by banks and creditors.
2. No Minimum Capital Requirement:
There is no minimum capital requirement to start an LLP. It can be established with the least possible investment, making it accessible for startups and small businesses.
3. Limited Liability of Partners:
Partners in an LLP enjoy limited liability, which is restricted to their capital contribution. This means that in case of winding up or insolvency, partners’ personal assets are protected, and only the LLP’s assets are used to repay debts.
4. Higher Flexibility:
LLPs offer greater flexibility in business operations compared to other corporate structures. Partners can withdraw funds, take unsecured loans, and determine profit-sharing arrangements as per the LLP agreement. This flexibility enables efficient management and smooth functioning of the business.
