What is a Limited Liabilities Partnership form (LLP)?

An LLP is a form of business which contains features of both a partnership firm govered by Partnership Act, 1932 and Private limited or limited company governed by provisions of Companies Act, 2013. LLPs integrate a partnership firm's operational flexibility with an enterprise's legal identity. It requires higher levels of compliance in comparison with partnership businesses. However, compliance regulations are much more relaxed than that of a Private Limited Company . To form a LLP, minimum of two partners are required to make the contribution. The maximum number of partners is infinite. Further, At least one of the dedicated partners should reside in India, and two of them should be individuals.

What are the procedures to register LLP in India?

Before initiating the LLP registration process, you have to apply for a Digital Signature Certificate (DSC) of all proposed partners of your proposed LLP. After that, a Director Identification Number (DIN) has to be obtained for all the direct designated partners. When these two things are done, now it's time to register a name by filling Limited Liability Partnership - Reserve Unique Name (LLP-RUN) in Central Registration Centre. After that, you have to file for incorporation by submitting the document and paying the prescribed fees. Now all the subscribers have to share their personal details along with shares held between them. When all these are done, you'll receive a certificate of incorporation marking the beginning of your LLP.

What are the benefits of LLP in India?

Limited liability - Traditional Form of partnership firms, governed by provisions of Partnership Act, 1932, provided for unlimited liability of partners.However, in case of LLP, liability of partners is limited to their contribution. LLP derives this feature from private limited or limited company. Established Legal identity- Traditional partnership firms did not have a feature of separate legal entities as they stand dissolved in case of death of a partner. However, LLP is separate legal entity as it keep on running irrespective of death of their partner. Various other benefits are: Various tax benefits Trustworthiness Business recognition High chances of getting investment from venture capitalists Continued existence Easy capital raising The limited risk to personal properties Enhanced brand value

Documents required for LLP Registration?

Documents are crucial as any inadequacy may results in unnecessary delay in incorporation of LLP. Following documents are required for the purpose of incorporation: Required Documents of Partners for LLP registration Identity Proof : PAN cards of all the partners are considered as their primary ID proofs. Same is required for both Digital signatures and DIN. Address Proof : Voter's ID, Aadhar Card, Driver's license, or Passport. Any of these documents may act as a valid address proof of partners. Any typo or mismatch between the address proof and application form will not be accepted by the RoC without correction. Photographs : All the partners need to profile their passport size photographs with white background in it. Residential Proof : The recent bank statements, latest electric bill, telephone bill, gas bill, and mobile bill (not earlier than 2-3 months) will be taken as residential proofs. Passports for NRIs : To become a partner under Indian LLP, the NRIs or Foreign Nationals compulsory have to submit their passports notarized by the concerned foreign authority. Otherwise, a signature on the passport from the Indian Embassy situated in that foreign country will also be acceptable. Apart from that, the NRIs will also have to submit their bank statements, driving license, residence card, or any other address proof issued by the government. Additionally, a notarized translation copy of the documents would also be required if written in any other language than English. Required Documents of LLP for registration Address Proof of registered Office : Within a month of LLP incorporation, the registered office address proof has to be submitted. A u2018no objection' certificate and rent agreement from the landlord will be required if the office premise is taken on rent. Other than that, utility bills like telephone, electricity, and gas bills containing the full address of the registered office must be provided. Please make sure that utility bill should not earlier than 2-3 months. Digital Signature Certificate : At least one of the designated partners will have to apply for the digital signature certificate. In addition, all the applications and documents should have digital signatures from the concerned authority.

Salient features of LLP in India?

Operational Flexibility: It allows business incorporators to embrace the organizational structure while limiting their liability to capital contribution only. Choice of Clauses: In an LLP incorporation agreement, partners have the right to choose the clauses according to their own benefits. Document filling relaxations: LLPs enjoy relaxations in filing documents like SAS and annual declaration even after the 300 days deadline passes. Limited Compliance: LLPs are bound to follow fewer compliance regulations than Private Limited Companies or Limited Liability Companies Unlimited Partners: Indian LLP Act of 2008 tells us an LLP can have direct partners of any number. It helps to acquire the maximum amount of investment.

How much time it take to register LLP in India?

Limited liability partnership registration take average 10-15 days. Digital Signature Certificate takes 2 working days. Director Identification Number takes 1 day 5 days for getting name registration approval 5 more days to get the company incorporation certificate

How can VJM & Associates LLP help you in starting LLP in India?

We assist our clients through the complete process of establishing an LLP in India. Here's how we can help you- Obtaining Digital Signature Certificate Getting Director Identification Number Helping you to decide a unique name for your LLP Then registering that name in Central Registration Centre Assisting in filing for incorporation by preparing all the requisite documents Creating subscribers information documents

Step 1: Obtain Digital Signature Certificate

Digital signature certificate of the personnel is needed in Private Company Incorporation in India. The digital signature certificate is required for filling of e-forms online on the portal of MCA (the Ministry provided portal for online registration). Digital Signature Certificate is issued by the Certifying Authority in token form. It is valid for 1 or 2 years. List of documents required for digital signature certificate: Passport size photograph of the applicant or applicants Self-attested Address proof of the applicant or applicants Self-attested PAN card of the applicant or applicants

Step 2: Obtaining Director Identification Number (DIN)

Director Identification Number or DIN is a unique identification number given by the Ministry of Corporate Affairs to the individual or in duals applying for the allotment of DIN. The number is assigned for a lifetime by the Ministry unless the holder or holders surrender or withdraw it. The director or directors of a company shall receive and intimate the DIN during the time of Limited Liabilities Partnership incorporation. Getting DIN is mandatory for getting an appointment as Director in any Company. The director or directors can use the DIN number for other company formation. He/she/they can get an appointment as Designated Partner in the LLP. List of documents required for digital signature certificate : Passport size photograph of the applicant or applicants Self-attested address proof of the applicant or applicants Self-attested PAN card of the applicant or applicants

Step 3: Application for Company Name approval

LLP-RUN has to be filed to reserve a name for the proposed LLP. The Central Registration Centre will process the application under Non-STP. But before deciding on a name, we'll recommend you use the name search facility available on the MCA portal . You can see the names of your existing competitions by filling up the criteria-based search inputs correctly. When the name registering application is submitted, the Registrar will review it, tally it with other existing names, and approve it. Names that don't resemble other established firms or companies' names will only be taken into consideration.

Step 4: Filing for Incorporation of LLP firm

The form FiLLiP (Form for incorporations of Limited Liability Partnership) is used to incorporate LLPs. The Registrar, having jurisdiction in the area where the LLP's headquarter is located, will fill this form. Then the fees mentioned in Annexure A has to be paid. The application, which allows business rights, has to be done by two applicants only. It will also be made through FiLLiP only.

Step 5: File LLP Agreement with ROC

LLP agreement controls the duties and mutual rights among the founding partners as well as between the LLP & its partners. Here's how you can file an LLP agreement with the Ministry of Corporate Affairs. You'll have to fill form 3 on MCA Portal to constitute a partnership agreement It has to be submitted within a month from the incorporation date This agreement also has to be written on a stamp paper. Value of the said stamp paper differs from state to state.