LLP Registration, Benefits, Eligibility, Procedure and Required Documents

What is a LLP Company Registration?

Limited Liability Partnership (LLP) is a corporate business partnership that provides the benefits of a company and partnership firm. By registering as a LLP company you can enjoy the benefits of both business and partnership arrangements. It has a separate legal entity from others and is also accountable to its all assets.  In a llp company the partner’s liability is limited to the invested amount to the LLP. Limited Liability was  introduced in 2008 under the Limited Liability Partnership Act, 2008. If you want to start a LLp company then you must have at least two members as a designated partner and one partner should be an Indian. Due to its feature of flexibility in operations and structures ,as well as its ability to raise funding from venture capitalists, an LLP is considered ideal for small and medium-sized business enterprises. 
 

Read Also : Is a Private Limited Company Right for You?

Why is LLP Registration Important?

LLP registration is important to avail the benefits of both a partnership and a company but only through a single registration. LLP Company Registration is one of the ideal business structures, especially for companies having two or more designated partners, or those persons who do not want full fledged registration of the company. In an LLP, the Company itself is liable for any financial loss  or debts that happen in business operations, which means individual members of the LLP are not personally liable for such financial obligations. It also provides the owners protection from their LLP's liabilities and enables the LLP's partners to manage the company directly. 

Read Also : LLP Company Registration, Process, Documents & Benefits

What are the Benefits of LLP Company Registration?

• Separate legal entity:- A Limited liability partnership has a separate legal entity. This distinction provides both the LLP and its partners different legal status. If there is a legal agreement then LLP can sue the third parties. Registered as a LLp company helps in gaining the trust of various stakeholders and gives the customers and suppliers a sense of confidence in the business.
• Limited liability of the partners:-  The LLP partners have the limited liability. Company’s partners liability is limited to the amount they contributed to the company. It means that they are liable to pay the contributed amount given by them and all their personal assets are safe. In case an LLP gets closed that time only company assets are liable to pay all the debts and loans. 
• Low budget  and less compliance:-  To form a LLp company needs a low budget as compared to incorporating a Public or Private Limited Company Registration. In an LLP you need to be less compliant than other entities. It needs to file annually two statements: Statement of Accounts and Solvency and Annual Return.
• No requirement of minimum capital contribution:-The LLP can be established without any minimum capital. There is no need for minimum paid-up capital for its incorporation. An LLp company can be started with any amount of capital given by the partners. 

Read Also : How to Register a LLP Company in India?

 

What is the Eligibility for LLP Company Registration?

If you want to register a Limited Liability Partnership (LLP) company in India then you must  meet these following eligibility criteria:

• A Limited Liability Partnership in India should have at least two partners. However, you can have a maximum number of partners in this company. 
• If a corporate body is a partner, it must be a natural person.
• Obtaining a Digital Signature Certificate is necessary documents for all company’s directors.
• The company should select a unique and different  name that should not duplicate any existing companies.
•  In LLP every partner must agree to contribute the capital to the company. 
• One Partner needs to be an Indian.  
• All partner's ages should be 18 to 65. 

Read Also : LLP Registration, Benefits, Eligibility, Procedure and Required Documents

What is the Procedure for LLP Company Registration?

• Get DSCs for Company’s Partners:  You need to visit the government website Minister of Corporate Affairs (MCA) portal to get Digital Signature Certificates for all partners. It is important to sign documents in order to verify and complete your registration process. 
• Select & Reserve LLP Name: Your company name should be unique and different from others existing entities. After selecting the company names it’s necessary to get it verified by the Registrar of Company (ROC) on the MCA government website.  For this, you can fill any of these forms FiLLiP or RUN-LLP (Reserve Unique Name) and both forms  are available on the government MCA website. 
• Online Application for Registration:  For Limited Liability Partnership (LLP) you must register it on the MCA portal. You need to upload all the necessary documents and information to be authentic. At last you need to submit the application and pay the given fees. 
• Apply for Certificate of Incorporation: After your application gets checked and approved then ROC will immediately issue a Certificate of Incorporation  to the Limited Liability Partnership (LLP) confirming its registration. 
• Submission of the LLP Agreement: You need to submit the Limited Liability Partnership (LLP) Agreement within the 30 days of its formation as it is essential documents for the LLP which includes all the terms and conditions mutually agreed between its partners. It is essential to submit the LLP agreement to complete the process. 
   

Read Also : Top 10 Reasons to Invest in a Private Limited Company

What are the Documents Required for LLP Company Registration?

These documents are needed for the Online LLP Registration in India: 
A. Documents of Partners

• PAN Card/ ID Proof of Partners 
• Residence Proof of Partners
• Photograph 
• Passport (in case of Foreign Nationals/ NRIs)
• Address Proof such as driving license, bank statement, residence card, or any government-issued identity proof containing the address.

B. Documents of LLP

• Proof of Registered Office Address
• No-objection certificate has to be submitted.
• Latest bill like gas, electricity, or telephone bills 
• Digital Signature Certificate

Read Also : Private Limited Company Registration Everything You Need To Know About