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If you're an entrepreneur and looking to start your own business in India, then you can register your company as a Limited Liability Partnership. LLP is a well-known business type in India that provides various benefits, including protecting limited liability of partners, easy ownership transformation and simple compliance requirements. An LLp offers the advantages of a partnership with limited liability of a company that makes it a more attractive choice for many small and medium sized businesses. The LLP was first introduced in 2008 and it is regulated by the Limited Liability Partnership Act 2008. To start a LLP company it requires a minimum 2 partners and there is no upper limit.
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LLP registration is a completely online process through the official website of the MCA (Ministry of Corporate Affairs). Also, you need to upload all the necessary documents digitally to complete the registration process. Following are the detailed steps that you need to follow to register your company:-
The Designated Partners in an LLP are responsible for managing its management and making important decisions on subject matters beyond daily activities business. Before you start the registration process, you need to ensure that all designated partners should have a Designated Partners Identification Number (DPIN). It is a unique number allotted by the government to the LLP partners. You need to file an application in DIR 3 form through the Ministry of Corporate Affairs website.
To establish a LLP company, you need a digital signature of the authorised designated partner of your company. For this, two partners can be authorised by all the other partners of the LLP. DSC documents need to be uploaded on the government MCA website to complete the registration process. So, it is recommended that all partners get the prescribed class of DSC beforehand.
As a next step, you need to select the company name according to the guidelines mentioned in the Trademark Act, Companies Act and the names and Emblems Act. Your company name should be unique, original and represent your business work. If your name is similar to other companies' names then it'll get rejected. Your LLP selected name needs to be reserved with the Registrar of the company, for this you need to fill the RUN-LLP form. In this you need to provide at least two names for your company that will be verified by the ROC. If your company name found valid will be reserved or approved for your LLP. If your proposed name gets rejected you don’t need to worry about it as ROC also provides two chances of submitting the name. Once your LLP name gets approved, an approval letter will be released to the LLP which is valid for 90 days. The applicant needs to complete the LLP registration process within these 90 days only.
As the next step you need to fill the application to complete the registration. The applicant needs to visit the official government website of the Ministry of Corporate Affairs. You must provide all the detailed information of the company including the names, addresses, and capital contribution of all partners, and DPINs of all designated partners, the name and address proof of the LLP, and other information.
To confirm these information you need to upload these necessary documents:-
Once you submit your registration application form, you will be transferred to the payment page. You need to pay the given fees then a challan will be generated along with a Service Request Number (SRN). You must keep the challan safely for your future preference. If your application form gets approved by the MCA then you will get an email and the status of your form will be changed to Approved.
After you submit the application then it will be examined by the ROC. If you filled your application with accuracy and uploaded the authentic documents then ROC will approve the application and register your LLP. At last the ROC will issue a certificate of registration for your LLp company. You can download this certificate from the MCA website.
The foundation of an LLP company registration is based on the deed or mutually signed agreement by its partners, This LLP agreement needs to be stamped by a public notary. Agreement must be submitted to the Registrar of Companies within 30 days from the establishment of the LLP.
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To register your company as a Limited Liability Partnership (LLP) company in India then you need to fulfil these eligibility criteria:
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To select a business structure it depends on several factors. These include the amount of the capital, number of company owners,objective of the business, mode and scale of operation, etc. You need to take the knowledge about the LLP company including its advantages and disadvantages before you make your decision.
In an LLP company the capital is contributed by the company’s partner.
These are the steps for LLP registration:
These are the some disadvantages include:
Following are the LLP compliance requirements post-incorporation:
DPIN stands for Designated Partners Identification Number. It is a unique number allotted by the government to partners of the company.
Updated on: 27 Mar, 2024 | 7 min read