Overview of LLP Registration online in India

LLP Registration online in India

• A Limited Liability Partnership is a popular choice for many entrepreneurs. This is because it offers benefits of both a company and a partnership.
• An LLP follows the Limited Liability Partnership Act of 2008. The partners also guide it with the LLP agreement they signed.
• An LLP is different from a partnership for two main reasons. First, it has perpetual succession. Second, the partners have limited liability. 
• To form an LLP, you need at least two partners. There is no limit to the maximum number of partners.

Online LLP registration makes the process easier than ever. With expert guidance, setting up your LLP is simple and smooth. Psr Compliance is here to help you succeed. We will assist you in registering your LLP firm effectively.

Characteristics of an LLP

The characteristics or features of an LLP are listed below:

1- Continued Succession

A limited liability partnership has the benefit of permanent succession. This means that the LLP can continue its business even if one or more partners retire, go bankrupt, become unable to work, or die. 

2- Separate Legal Entity

Similar to a company, an LLP is a distinct legal entity. It takes full responsibility for its debts and possessions and receives different treatment from its partners. 

3- Limited Liability

The liability of every partner of an LLP is limited to the amount as agreed between them. Therefore, no one can claim any amount from their personal assets in the name of LLP. 

4- LLP Agreement

Every partner signs the LLP Agreement, which outlines their responsibilities and rights. If an LLP does not have an LLP agreement, the Act will govern their respective rights and obligations.

5- Mutual Agency

In an LLP, one partner's actions do not make the other partners liable. This is different from a regular partnership. Every partner acts as the LLP's agent, and no partner's decisions bind the other partners.

What are the Benefits of an LLP Registration in india?

Here are a few benefits of an LLP, that will make you understand why LLP would be an ideal choice for your business needs:

1- Less Compliance and Cost

LLP company registration, especially online, is faster and more affordable compared to other business types. Moreover, there are exceedingly few compliances that an LLP has to follow. The LLP must file only two statements each year: the Annual Return and the Statement of Accounts and Solvency.

2- No Minimum Capital Requirement

A minimum capital requirement is not necessary to incorporate an LLP. Partners can incorporate an LLP with any amount of capital they contribute. 

3- No Taxes on LLP

LLPs are subject to pass-through taxes, meaning that the partners bear the direct taxation of the LLP's revenue. By doing this, businesses that divide their gains to shareholders avoid paying double taxes.

4- Flexible structure

When it comes to ownership and management structures, LLPs are comparatively adaptable. One partner can easily transfer their shares to another. The partners alone decide how to manage the partnership. 

What are the Requirements for LLP Registration?

For LLP registration online or offline in India, the following requirements must be met:

• The name of any LLP must be unique and not similar to any other registered company, LLP, or trademark. 
• You need a minimum of two partners to incorporate an LLP. 
• Designated partners need a DSC and DPIN.
• Partners must sign an LLP agreement outlining their rights and liabilities.
• Provide proof of the LLP's registered office.
• Partners must contribute capital for incorporation.

Documents Required for LLP registration

To register an LLP, two sets of documents will be required, that is documents of the partners and documents of the LLP. The important documents that will be required at the stage of incorporation are listed below:

Documents of Partners 

Every partner of the Limited Liability Partnership will be required to submit the following documents:

• PAN cards and identity documents for each partner.
• Provide address proofs for all the partners, such as driver's license, passport, or voter ID.
• Partner's passport-sized photograph on the white backdrop.
• If any foreign citizen or NRI wishes to join the LLP, they must also provide their passports.

Documents of LLP

The LLP must mandatorily submit the following documents for registration: 

• You need to show proof of the registered office address. You must complete this when you register or within 30 days after forming the LLP. 
• If the registered office occupies a rented space, the landlord must provide an NOC.
• Provide a utility bill (dated within the last two months) as proof of business address.
• Obtain a Digital Signature Certificate (DSC) to sign LLP documents.

LLP Registration Process

LLP company registration in India, especially online, is simple and requires minimal compliance. Look at the steps below to understand the whole process:

Step 1: Obtaining a Certificate of Digital Signature (DSC)

Getting the digital signatures of each of the LLP's selected partners is the first stage in registering the LLP. All documents submitted by the LLP must have a digital signature. The digital signatures on all the important documents facilitate the registration process and take relatively less time. 

Government organizations with certification, such as the National Informatics Center, IDRBT Certifying Authority, E-MUDHRA, CDAC, and NSDL, can provide the necessary digital signatures. Your application will determine the cost that you'll have to bear for availing this certificate. 

Step 2: Select and reserve a unique name for LLP

The applicant must complete the Limited Liability Partnership-Reserve Unique Name (LLP-RUN) form. This form can be processed at the Central Registration Center.

You need to register a new limited liability partnership. First, check the Ministry of Corporate Affairs (MCA) website for existing names. Then, submit a name that is not already taken. This makes the registration process smooth and fast.

You should already have a list of businesses that share the same name as your proposed limited liability partnership. Make sure that the name you select, must not be same or resemble with any existing company. In order to reserve a name, file the LLP-RUN form with the requisite fee. 

Step 3: LLP Incorporation

To set up an LLP, you must complete the Limited Liability Partnership (FiLLiP) form. This form needs to be filed with the registrar. You also need to pay a required fee. Two individuals must file this application together.

Step 4: Submit the LLP Agreement

The partners' rights and obligations are governed by this agreement. You can submit Form 3 electronically through the MCA Portal.

File Form 3 within thirty days of incorporation. Also, register the LLP agreement on stamp paper in the state where the LLP is incorporated. Be sure to check your state rules when forming an LLP in India.

Step 5: Grant of Incorporation Certificate 

After properly verifying the application and documents submitted, the registrar issues the certificate of incorporation and the LLP firm comes into existence. 

LLP Registration Fees

LLP registration fees in India vary based on authorized capital and are paid to the Ministry of Corporate Affairs (MCA):

• Up to ₹1 lakh: ₹500
• ₹1–5 lakh: ₹2,000
• ₹5–10 lakh: ₹4,000
• Above ₹10 lakh: ₹5,000

Why LLP is Preferred Over a Partnership?

There are certain points that make business owners prefer LLP over partnership: 

• First and foremost, an LLP combines the features of both a company and a partnership. 
• The liability of all the partners of the partnership firm is limited. In a partnership, partners have unlimited liability. This means their personal assets can be used to cover the firm's losses. 
• In LLP, there is no restriction on the maximum number of partners. On the other hand, in a partnership, there can be a maximum of 50 partners. 
• Registering a partnership firm is not required. However, if the partners choose, they can register their firm with the Registrar. In contrast, an LLP is registered with the Ministry of Corporate Affairs.
• Many people view the LLP business structure as more credible and reliable compared to the partnership business. 

How Much Time is Required for LLP Registration in India?

• The time taken for registering an LLP depends upon the departmental approval and the accuracy of the application filed. Moreover, the process starts with getting a DSC by filing Form-3. In most cases, the process takes between 10 to 15 days.
• You don’t need to worry about anything. PSR Compliance specializes in LLP registration online, making the process smooth and seamless for businesses across India.
• For knowing the exact time and details required in the LLP incorporation process, please contact our experts and initiate the process most effectively. 

How PSR Compliance can help you with LLP Registration?

Step 1: Connect with Us
Reach out to us via email at Support@psrcompliance.com or call us at +91-7065883416 for expert guidance on LLP registration.

Step 2: Understand the Process
We’ll explain the LLP registration process, ensuring you have a clear understanding of all the steps involved.

Step 3: Assistance with Documentation and Fees
Our team will help you prepare the required documents, such as the PAN card, address proof, and partnership agreement. We’ll also guide you through the applicable fees for a smooth registration experience.

Step 4: Submit Your Application
We ensure that your LLP application is accurately filled and submitted to the Ministry of Corporate Affairs (MCA), minimizing errors or delays.

Step 5: Receive Your LLP Certificate
Once approved, we’ll ensure you receive your LLP incorporation certificate and other essential documents without any hassle.

Choose PSR Compliance for expert support in registering your LLP. We make the process fast, reliable, and easy!

Frequently Asked Questions

Q1. What is LLP registration?

LLP registration is the process of legally registering a Limited Liability Partnership (LLP) under the Ministry of Corporate Affairs (MCA) in India. It involves submitting documents and getting a unique name to make the LLP a separate legal entity with limited liability for its partners.

Q2. What to do if only one partner is left in an LLP?

If only one partner remains in an LLP, the LLP can normally operate for six months while searching for another partner. If even after six months, the LLP still has one partner, then that partner will become personally liable for the acts of an LLP. Moreover, the NCLT may also wind up such an LLP. 

Q3. What is an LLP Agreement?

An LLP agreement is a document signed by the partners. It outlines the rights and responsibilities of each partner. Every partner and the LLP must adhere to this agreement. 

Q4. Can I add more partners in LLP after its registration?

Yes, you can add or remove partners in the LLP. You must follow the LLP agreement and local laws. These laws are based on the state where the LLP was formed. 

Q5. Do I need MOA and AOA for LLP incorporation?

LLP has the features of a company, but it is not a company registered under the Companies Act, 2013. Therefore, it does not require MOA and AOA for incorporation.