Limited Liability Partnership is a preferred business entity for many entrepreneurs because it combines the best of both company and partnership firm. It has given this organization a level of flexibility that entrepreneurs want during their initial stages. That is why, LLP registration in India is considered by many entrepreneurs, second only to a private limited company.
Benefits of Limited Liability Partnership (LLP)
LLP is favored by many entrepreneurs because it is a combination of the best business entities prevalent in India. The benefits of LLP registration in India are as follows:
- Just like a company, an LLP is also a separate entity from the owner.
- Each partner is only liable to their own contribution made to the LLP
- The cost of LLP registration in India is lower than you would expect.
- The number of compliance in an LLP is less than a company.
- The amount of capital required to register an LLP in India can be zero.
As we said, the process of registering an LLP is quite easy. In the next section, we are going to touch upon this very thing.
LLP Registration Process in India
To register an LLP in India, the most basic requirement is the DPIN or DIN. They are respectively called Designated Partner Identification Number and Director Identification Number respectively. Then, the rest of the process takes place. Stepwise explanation of LLP registration process in India is as follows:
- File the application or DIN or DPIN: All LLPs are required to propose a Designated Partner or a Director. The form DIR-3 is filed to request for DPIN. If you already have a DIN, you can use it as DPIN.
- Get the DSC: The LLP registration is done online in India. Therefore, you need to authorize the documents required for LLP registration in India through digital means. A digital signature is for this exact purpose. It authenticates the documents you are submitting online.
- Go the LLP portal and register yourself: As the process is online, you need to go to an LLP portal and register yourself as a new user. Once you do, you are ready to incorporate your LLP.
- Register your LLP: The application for LLP registration in Form 1. Once filed, you need to file FORM 2 depending upon the nature of the proposed LLP.
- Form 1 is for reserving the name of the LLP.
- Form 2 is for the incorporation and subscriber statement of the LLP.
- File an LLP agreement: Once both the forms have been approved by the ministry, you have to file an initial LLP agreement within 30 days of LLP registration. It is to be filed in Form 3.
Once your LLP is finally registered, you are ready to proceed with your business.
Documents required for LLP registration in India
While discussing the LLP registration process, we slightly touched upon the documents required for LLP registration. Here, we shed a light on them:
- PAN card of the Partners
- ID proof of the partners
- Address proof of the partners
- Photo Ids of the partners
- Passport of the partners (if the partners are either foreign nationals or NRIs)
- Address proof of the registered office
- DSC (Digital Signature Certificate)
You need a Xerox copy of these documents that have to be attested by a practicing Chartered Accountant. In fact, if you attach a copy of the board resolution of the partner’s meeting, you can let a CA file the application on your behalf.
For further details, you can contact our Experts at Registrationwala. We are always happy to assist you.