LLP Registration

Minimum Requirements

  • Minimum Two Partners
  • DIN of the Partners
  • No Minimum Capital Required
  • DSC of One Partner
  • One Partner Must Be an Indian Resident

Advantages of LLP

  • Limited Liability Protection - Partners are not personally liable for business debts.
  • No Audit Requirement - LLPs are exempt from mandatory audits unless turnover exceeds specified limits.
  • Lower Registration Cost - Affordable setup compared to other corporate structures.
  • Separate Legal Entity - LLP has a distinct identity from its partners.
  • Less Procedural Compliance - Lesser regulatory burdens compared to companies.

Meaning of LLP

A Limited Liability Partnership (LLP) is a hybrid business structure that integrates features of both partnerships and corporations. Unlike traditional partnerships, an LLP ensures limited liability protection to its partners. This means partners are not personally responsible for the misconduct or negligence of other partners.

Due to its simplicity and legal advantages, LLP is widely adopted by professionals, service providers, and small to medium-sized businesses.

Key Takeaways

  • LLPs distribute risk among partners while leveraging individual skills.
  • Preferred structure for professional firms such as law firms, accounting firms, and wealth management consultancies.
  • LLP formation is governed by the Limited Liability Partnership Act, 2008.

Suitability and Popularity

LLPs are ideal for professionals, family-owned businesses, and closely held enterprises. However, LLPs are not suitable for businesses seeking equity funding from venture capitalists or private equity investors.

Features of LLP

  • Separate Legal Entity - LLP is distinct from its partners, ensuring business continuity.
  • Limited Liability - Each partner’s liability is limited to their capital contribution.
  • Cost-Effective Formation - LLP registration and operational costs are lower than other company structures.
  • Less Compliance - No mandatory statutory filings unless turnover exceeds prescribed limits.
  • No Minimum Capital Requirement - LLPs can be formed with any amount of capital.
  • Compulsory Audit (Conditional) - Audits are required only if capital exceeds INR 25 lakh or turnover exceeds INR 40 lakh.

Basic Requirements for LLP Incorporation

  • Minimum 2 Designated Partners
  • Digital Signature Certificate (DSC) of at least one partner
  • Designated Partner Identification Number (DPIN) for all partners
  • Defined Capital Contribution (tangible or intangible)
  • At least one partner must be an Indian Resident

Documents Required for LLP Registration (New Delhi, India)

For Partners:

  • PAN Card or Passport (for Foreign Nationals)
  • Identity Proof: Aadhaar Card, Driving License, Voter ID, or Government ID
  • Address Proof: Recent Bank Statement, Electricity Bill, or Telephone Bill (not older than 3 months)

For Registered Office:

  • No Objection Certificate (NOC) from Property Owner
  • Utility Bill (Electricity, Water, or Telephone Bill not older than 2 months)
  • Rental Agreement (if applicable) or Property Ownership Documents

LLP Registration Process - Nayan Saluja & Company

Step 1: Name Reservation (RUN LLP - MCA Portal)

  • Apply for LLP name reservation through the RUN LLP service on the MCA portal.
  • Provide two name choices and justification.
  • Check name availability to avoid conflicts with existing businesses or trademarks.
  • Once approved, the name is reserved for 20 days.

Step 2: Obtain Digital Signature Certificate (DSC)

  • All designated partners must obtain a Class 2 DSC to digitally sign registration documents.

Step 3: E-Filing for LLP Registration

  • File FiLLiP (Form for LLP Incorporation) on the MCA portal.
  • Attach required documents (Subscriber’s Sheet, Directors KYC, Office Address Proof, etc.).
  • Digital Signature of one partner is mandatory.
  • Certification by a Chartered Accountant (CA), Company Secretary (CS), or Cost Accountant (CWA) is required.

Step 4: Certificate of Incorporation

  • After approval, MCA issues the Certificate of Incorporation via email.

Step 5: Filing LLP Agreement

  • Partners must draft and file an LLP agreement within 30 days of incorporation.
  • The agreement should be executed on stamp paper and notarized.
  • Stamp duty depends on the state and capital contribution.

Why Choose LLP for Your Business?

  • No minimum capital requirement, making it ideal for startups.
  • Lower compliance costs than Private Limited Companies.
  • Flexible structure for professional service providers.
  • Easy conversion to a company if business scales up.

Get Professional Assistance for LLP Registration

Register your business with Nayan Saluja & Company, a trusted Chartered Accountant firm based in New Delhi, serving clients across India. Our team ensures a seamless LLP registration process, handling legal, financial, and compliance matters efficiently.

Contact us today for expert LLP registration services!

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