LLP Registration in India: A Step-by-Step Guide

New Delhi (India), June 20: Limited Liability Partnership (LLP) has become a popular business structure in India due to its unique blend of advantages offered by both partnerships and companies. It provides the flexibility of a partnership while offering the benefits of limited liability. This guide outlines the step-by-step process for registering an LLP in India.

What is an LLP?

An LLP Registration is a corporate business vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in a flexible, innovative, and efficient manner, providing the benefits of limited liability while allowing its members the flexibility of organizing their internal structure as a partnership.

Advantages of LLP

Limited Liability: The liability of partners is limited to their agreed contribution in the LLP.

Separate Legal Entity: LLP is a separate legal entity from its partners.

Flexibility: LLP provides operational flexibility similar to a partnership.

No Audit Requirement: LLPs are not required to audit their accounts unless their annual turnover exceeds a certain limit.

Easy Compliance: LLP has fewer compliance requirements compared to a private limited company.

Steps to Register an LLP in India

Obtain Digital Signature Certificate (DSC)

All designated partners of the proposed LLP must obtain a DSC. This is essential for filing the incorporation form and other necessary documents electronically.

Apply for Designated Partner Identification Number (DPIN)

Each designated partner must have a DPIN, which can be obtained by applying to the Ministry of Corporate Affairs (MCA). In case of company, it is called DIN.

Name Reservation

Propose a name for the LLP and check its availability on the MCA portal. File the ‘LLP-RUN’ (Limited Liability Partnership-Reserve Unique Name) form to reserve the name. Ensure the name adheres to the guidelines provided by the MCA.

Incorporation of LLP

File Form FiLLiP (Form for incorporation of LLP) with the Registrar of Companies (ROC). Attach the necessary documents, such as the subscriber’s sheet, proof of registered office address, and details of the partners.

LLP Agreement

Draft an LLP Agreement, which defines the rights and duties of the partners. The agreement must be filed within 30 days of the incorporation. File Form 3 along with the LLP Agreement to the ROC.

PAN and TAN Application

After the incorporation, apply for the LLP’s Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).

Documents Required for LLP Registration

For Partners:

  • PAN Card
  • Address Proof (Aadhaar Card, Voter ID, Passport, Driving License)
  • Residence Proof (Recent utility bills like telephone, electricity, or gas bill)
  • Passport-sized photographs

For Registered Office:

  • Proof of address (Rent agreement or sale deed)
  • Utility bill (Electricity bill, telephone bill, etc.)
  • No Objection Certificate (NOC) from the owner

Compliance Requirements Post-Registration

Annual Return: LLPs must file an annual return in Form 11 within 60 days from the end of the financial year.

Statement of Accounts and Solvency: LLPs must file a statement of accounts and solvency in Form 8 within 30 days from the end of six months of the financial year.

Income Tax Return: LLPs must file an income tax return every year.

Conclusion

Registering an LLP in India involves a series of well-defined steps. By following this guide, entrepreneurs can ensure that their LLP is registered correctly and in compliance with Indian laws. You can also get Startup India Registration with your LLP. Further, the LLP structure offers significant advantages, making it an attractive option for many businesses, combining the benefits of a partnership with the protection of limited liability.

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