Eligibility of LLP Registration
To be eligible for LLP (Limited Liability Partnership) registration, the following conditions must be met:
Minimum number of partners:An LLP must have at least two partners, but there is no maximum limit.
Minimum capital: There is no minimum capital requirement for registering an LLP.
Residency of partners: At least one partner must be a resident of India.
Age of partners: The partners must be at least 18 years old.
Business activities: The LLP must engage in lawful business activities.
Document Required for LLP Registration
The following documents are typically required for LLP (Limited Liability Partnership) registration:
Proof of identity and address of partners: This can be in the form of a passport, PAN card, voter ID, or driving license.
Proof of business address: This can be in the form of a rental agreement or a utility bill.
LLP Agreement: A document that outlines the terms and conditions between partners and their respective rights and obligations.
Fees: The fees for LLP registration vary based on the capital contribution of the partners and the size of the business.
Procedure of registering LLP registration
The procedure for registering a Limited Liability Partnership (LLP) typically involves the following steps:
Choose a unique business name: The name of the LLP must be approved by the Registrar of Companies (ROC) and must not be similar to an existing company or trademark.
Appoint partners and designate a partner:The LLP must have at least two partners, and one of them must be designated as the responsible partner.
File the LLP Agreement: The LLP Agreement is a document that outlines the terms and conditions between partners and their respective rights and obligations.
Obtain Digital Signature Certificates (DSC) and Director Identification Numbers (DIN): The designated partners must obtain a DSC and DIN.
File incorporation documents with the ROC: The LLP Agreement, along with other required documents, must be filed with the ROC.
Pay the fees: The fees for LLP registration vary based on the capital contribution of the partners and the size of the business.
Obtain the certificate of incorporation: Once the ROC approves the incorporation documents, a certificate of incorporation will be issued, which serves as proof of the LLP's registration.
LLP Amendment Act 2021
The LLP Amendment Act 2021 is a legislation that was passed by the Indian government in 2021 and made several changes to the Limited Liability Partnership (LLP) Act of 2008. The amendment aimed to make the process of starting and running an LLP easier and more convenient for businesses. Some of the key changes introduced by the Amendment Act are:
Increased flexibility: The amendment allows LLPs to alter their LLP agreements, making it easier for partners to make changes to their business arrangements.
Simplified compliance requirements:The Amendment Act reduces the number of compliances required under the LLP Act, making it easier for LLPs to meet their legal obligations.
E-Form filing: The Amendment Act allows for the filing of most forms related to LLP registration and compliance to be done online, making the process faster and more convenient.
Introduction of alternative dispute resolution mechanism: The Amendment Act introduced an alternative dispute resolution mechanism, allowing LLPs to resolve disputes between partners more efficiently.
Increased powers of the Central Government: The Amendment Act gives the Central Government increased powers to regulate LLPs, including the ability to make rules and regulations for their functioning.
These are some of the major changes introduced by the LLP Amendment Act 2021 in India. It's important to note that the act may have undergone further amendments or changes since 2021 and I recommend checking with a local authority or professional for the most up-to-date information.
PSR Compliance Assistance
The process of registering a LLP Registration involves adhering to many requirements, preparing documents, and complying with pre-incorporation and post-incorporation compliances. Moreover, complying with specific MCA mandates is imperative to avoid incurring hefty penalties and late fees. This process can seem daunting and confusing without professional assistance. PSR Team provides expert service in the online registration process of one’s company on the MCA website. Our team of experts will assist you every step of the way in your journey to get your company registered.