LLP Company Registration, Process, Documents & Benefits

What is a LLP Company Registration?

Like most businesses who want scalability, legal status and validity, a Limited Liability Partnership (LLP)  also needs to be registered with the relevant government authorities. The registration process normally involves submitting required documents and information to the nodal government authority. This includes details about the partners, the LLP agreement, and other relevant personal information. The purpose of LLP registration is to legally formalize the existence of the LLP, define its structure and operations, and provide it with legal recognition.

It also helps in obtaining various benefits and protections that come with being a registered business like government concessions and fundings from multiple sources. It's important to check all the regulations and legal and other requirements before proceeding to register your LLP, as failure to register or comply with the rules may result in legal consequences. Consulting with a legal professional or business advisor can be helpful to ensure that you meet all the necessary requirements for LLP registration in your specific location.

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What is the Limited Liability Partnership?

Limited Liability Partnership or LLP is a corporate business setup which offers the benefits of both a corporation and a partnership firm. It has characteristics of both business and partnership arrangements, so essentially it is a combined arrangement. An LLP is considered a separate legal entity and thus it is accountable for its whole assets value. In an LLP a partner's liability is limited to the amount they have put into the LLP. An LLP's partners are only responsible for their self conduct. An LLP company has a separate legal existence. It has the feature of perpetual succession just like a company. 

Due to LLP's flexibility in operations and structures ,as well as its ability to raise funding from venture capitalists, an LLP company is ideal for small and medium-sized business enterprises. In India, the Limited Liability Partnership (LLP) incorporation concept first came up in 2008. The Limited Liability Partnership Act, 2008 governs the LLPs in India. Each Limited Liability Partnership (LLP) must have a minimum of two individuals as Designated Partners, and at least one of them should be an Indian resident. "LLP Agreement" is the name given to this agreement. There is no limit imposed on the maximum number of partners for an LLP. The LLP agreement describes the responsibilities, duties and rights of authorized partners.

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Why is LLP Registration Important?

It is important to get an LLP registration to avail yourself of the benefits of a partnership and a company both but in a single registration. LLP Registration is one of the best business arrangements, especially for firms having two or more designated partners. The idea behind an LLP registration is that neither partner can be held responsible, accountable or liable for the carelessness or wrongdoing or any other mishappening or fraud committed by the other partner in the company. It also provides the owners limited liability protection from their LLP's liabilities and enables the LLP's partners to manage the company directly. You can contact ApkaTax and get your LLP registered today.

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What are the Benefits for LLP Company Registration?

LLP Registration has numerous benefits. Given below are a few of the main advantages of an LLP registration:

• Partners Limited Liability: One of the primary benefits of LLP registration is the limited liability clause that it offers to all the partners. 

• Separate Legal Entity: An LLP is legally recognized as a separate legal entity. This distinction gives both the LLP and its partners distinct legal statuses.
• Lower Incorporation Cost and Minimal Compliance: LLPs stand out for their cost-effectiveness in comparison to other business forms such as private or public limited companies. LLP incorporation and company registration cost is relatively low.
• Increased Flexibility: The operations of an LLP are governed by the LLP agreement, which is an outcome of joint decisions of its members. This unique governance structure provides more flexibility in the company's operations compared to other business forms. 
• No Minimum Capital Requirement: Unlike many business structures, LLPs do not have a minimum capital requirement for incorporation. 
• Perpetual Succession: LLP registration has the concept of perpetual succession. The death of a partner does not impact the ongoing existence of the business.

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What are the Characteristics for LLP Company Registration?

A Limited Liability Partnership (LLP) has many distinct features that set it apart as a unique business entity. Below are some features of LLP Company registration. 

• Body Corporate
• Independent Legal Body
• LLP Agreement
• Cost-Effective
• No Limit on Partners
• Perpetual Succession
• Artificial Person 
• Less Compliances
• Limited Liability
• Minimum Number of Partners

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What are the Documents Required for LLP Company Registration?

The documentation requirement for Limited Liability Partnership Registration is quite similar to other registrations like Private Limited Company Registration or OPC Registration. But for the LLP Registration two sets of documents one for LLP and the other set of partners documents is required.

Documents of LLP
For LLP registration, following documents need to be furnished

• Documents of the registered office address

• A Digital Signature Certificate (DSC).
• Proof of Address
• Copy of Utility Bills like Electricity Bill or Telephone Bill

 

Documents of Partners
For Partner Registration, following documents are needed:

• PAN cards of every partner

• Identity Proof documents for each partner.
• Address proofs of partners like driving license, passport, or voter ID.
• Passport-size photographs.
• Passports of foreign citizens and NRIs 

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What is the Process for LLP Company Registration?

Following are the steps in the registration process of an LLP:

• Name Approval
• DIN and DSC Approval
• Submit the FiLLiP Form
• Application for reservation of name 
• Application for allotment of DPIN
• Application to issue LLP Identification Number or Registration of LLP with RoC 
•  Consent by a designated partner 
•  Application for PAN/ TAN allocation 

 

Below is the online LLP Registration process:

• Visit MCA homepage 
• Login to MCA portal with valid credentials
• Select “MCA services” and further select “E-Filling” 
• Select “LLP Forms Download” 
• Navigate to link “Name reservation and LLP incorporation” 
• Locate the form, “FiLLiP” under the column “Name reservation and LLP incorporation” 
• Fill up the application 
• Filling up Form 9 for obtaining Consent to work as Designated Partner in LLP
• Submit the webform 
• SRN or Service Request Number is generated upon submission of webform 
• Affix the DSC 
• Upload the DSC affixed document in PDF format on MCA portal 
• Pay Fees 
• Acknowledgement is generated

 

Once the webform is processed and found complete, The Registrar of Companies (ROC) will examine and verify the application and then issue the Certificate of Incorporation following the verification. In this way an LLP is registered and PAN/TAN and LLPIN is allocated to it. Also, DINs/DPINs are issued to the proposed designated partners (individuals and nominees of body corporate)in case they do not have a valid DIN/DPIN.

After the incorporation procedure, the first LLP agreement is to be submitted within 30 days from the date of organization. The applicant is required to provide Form 3 details. Put "LLP" or "Limited Liability Partnership" at the end of your LLP name. This is required to display that your organization has the structure of LLP. LLP registration by ApkaTax takes 7-10 days, subject to departmental approval.

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