An LLP can be easily registered online. To learn about the eligibility requirements, cost and timeframe, step-by-step procedure, and List of Documents required for LLP Registration in India, speak with Consult Value’s LLP Incorporation specialists.
Get Started with LLP Incorporation in India
The LLP Act of 2008 established limited liability partnerships (LLPs), a novel type of partnership structure, in India. Its introduction aims to address all the shortcomings of traditional partnerships and give companies a better option. The limitations of an LLP include limited firm life, no distinct management structure, and limitless liability. These shortcomings make running a business extremely difficult, so an LLP was created as a better option.
LLP is Best Suited For:
- Partnership Businesses
- Having Multiple Partners
- Seeking Continued Existence
- Flexibility in Management
- Easy Transfer of Ownership
| Name Filing What’s Included: Name Availability Search Drafting of Main Object Selection of NIC 2008 Code Option to give two Name Filing of RUN Form Reply to upto two resubmissions | Standard Pack All of Name Approval Pack + DSC & DIN for two persons Incorporation Document Drafting Filing of FILLIP Form Incorporation Certificate LLP e-Pan & e-Tan LLP Agreement Drafting Filing of Form-3 |
Eligibility / Checklist for LLP Incorporation
The LLP Act of 2008 established limited liability partnerships (LLPs), a type of partnership structure, in India. Its introduction aims to address all the shortcomings of traditional partnerships and give companies a better option. The limitations of an LLP include limited firm life, no distinct management structure, and limitless liability. These shortcomings make running a business extremely difficult, so an LLP was created as a better option.
- Minimum Two Partner- An LLP must have a minimum of two partners in order to be registered. The maximum number of partners that an LLP may have been unlimited. The partners split profits and make capital contributions.
- 2 to 15 Designated Partners- Designated partners are in charge of the LLP’s overall management and control, and they are also in charge of compliance and tax payments. An LLP may have two to fifteen designated partners.
- Resident Designated Partner- At least one designated partner of the LLP must reside in India each fiscal year in order to maintain responsibility, since the designated partners are in charge of the LLP’s overall compliance.
- Unique Name of LLP- The LLP’s name needs to be original and different from those of any other company, LLP, or trademark that is already registered in India. At the time of LLP incorporation, we assist you in conducting a name availability search.
- Pre-Defined Contribution- The partners shall choose their capital based on the needs of the firm; the LLP Act does not specify a minimum or maximum amount. The LLP Agreement’s ROC Fee and stamp duty are impacted by the capital.
- Legal Object of Activity- The LLP’s proposed primary business activity needs to be clearly defined and lawful. It should be thoroughly explained in the LLP Agreement and provided in the FILLIP Form at the time of LLP incorporation.
Timeline for LLP Registration- Timeline for LLP Registration: Documentation, the ROC’s availability of the LLP’s name, and the number of partners all affect how quickly an LLP can be incorporated. With more than 20 years of combined experience, our staff is better equipped to assist with LLP incorporation in India quickly and effectively.
Documentation & Making of DSC (1 – 2 Days)
The Aadhar OTP is the basis for the online digital signature issuance process. Obtaining video authentication is one of the prerequisites. We project that it will take one to two days for each LLP partner to receive their DSC.
Name Search & Main Objects Drafting (1 – 3 Days)
We help you thoroughly search for a suitable name for the LLP. It generally takes one to three days to discuss possible name availability with the promoters.
Filing for Incorporation (3 – 4 Days)
Evidence of registered office and evidence of partner identity and residence are attached to the application for LLP incorporation, which is submitted on the required FILLIP form. Following name clearance, this procedure may take one to two days.
Incorporation Certificate (4 – 7 Days)
The ROC office reviews the application and any supporting documentation after the FILLIP form is submitted. The LLP Incorporation Certificate is granted if everything is determined to be in order.
List of Documents For LLP Registration
At Consult Value, we recognize how crucial accurate documentation is to a Limited Liability Partnership’s (LLP) effective incorporation. We have created a table below that includes all of the documentation needed for the LLP Incorporation procedure in order to make things easier for our clients. We ask that you fill out a questionnaire that our startup advisor will email you, in addition to the list of documents below.
- Passport size colour photo: A recent colour photograph taken from the front against a clear, preferably white background is required from each partner of the proposed LLP.
- PAN Card (Mandatory): The PAN Card, which Indian promoters must provide to the LLP, is issued by the Income Tax Department in India. A No PAN Declaration is submitted if the foreign partners don’t have one.
- Aadhar Card (Mandatory): All LLP Indian partners must have an Aadhar card. During incorporation, make sure the Aadhar is connected to the PAN and mobile number for OTP-based verification.
- Proof of Identity: Any one of the below government-issued valid documents is considered an eligible identity proof document:
- Passport
- Aadhar Card
- Driver License
- Voter ID
- Proof of Residence Each partner must provide confirmation of a current residence address that is no older than two months. Any of the following documents might serve as evidence of address for the LLP Incorporation:
- Bank Statement
- Electricity Bill
- GAS Bill
- Telephone Bill
- Mobile Bill
- Proof of Property Ownership: The registered address must have a lockable space where the LLP’s important legal records will be stored upon incorporation. Please submit any of the following documentation within sixty days of the LLP incorporation filing date in order to prove the premises.
- Electricity Bill
- Telephone Bill
- GAS Bill
- Mobile Bill
- NOC from the Owner The incorporation of a legal entity, such as an LLP, on the property requires the consent of the property owner. The premises owner must provide a NOC, which must be included as an attachment when submitting an application for LLP registration. Do not be afraid to request a sample NOC format.
Note on the Document Submission
It is advised that you submit soft copies of all supporting documentation and a completed questionnaire that you will receive from our startup advisors. At the time of incorporation, we will confirm the data and documents you have supplied us and provide you with advice on their acceptability. Please get in touch with us if you need any clarification or a copy of the required NOC format.
Stepwise Process of LLP Registration
With the digitisation of all MCA services, the LLP Registration process is entirely online and has become quicker, easier, and hassle-free. Here is the stepwise process
Step 1: Documentation for LLP Incorporation
Preparing the necessary paperwork, including the Partners Pan, Aadhar, evidence of current address, and the address for LLP registration, along with the NOC from the property owner, is the first step in the LLP registration process in India. Our knowledgeable consultants are here to help.
Step 2: Make a Digital Signature for all the partners
After arranging all the required documents, the next step is to obtain the Digital Signatures of all partners. Digital Signatures are required to sign and authenticate the application for LLP Registration. Class 3 digital signature is required.
Step 3: Select & Reserve a unique LLP Name
The name of your limited liability partnership should be distinct and not the same as or similar to any other firm, LLP, or trademark that already exists in India. The suggested name ought to adhere to MCA regulations. After you’ve decided on a suitable name, you must have the ROC approve and reserve it. Both the RUN-LLP (Reserve Unique Name) and FiLLiP formats are available. The MCA website offers both of these forms.
Step 4: Apply for LLP Registration Online
The MCA website has the online application for Limited Liability Partnership Registration. Once you get access to the program (FiLLiP), you can complete all the information. Additionally, upload the scanned, self-attested copies of the documents to finish it. After paying the required amount, submit the form with the authorized designated partner’s Class 3 Digital Signature attached.
Step 5: Incorporation of LLP
The Registrar of Companies receives the submitted application and decides whether to approve or reject it after carefully reviewing it. A Certificate of Incorporation, verifying the LLP’s registration, is promptly granted by the ROC upon approval. The certificate is given to the LLP along with its LLPIN, PAN, and TAN.
Step 6: Submit the LLP Agreement
The LLP Agreement is a document that outlines the terms and conditions that the partners have mutually agreed upon. The process must be finished and filed within 30 days of incorporation.
Difference between LLP and Partnership Firm
An LLP can be your best option if you’re planning to start a partnership firm! See the table below to understand why. We have highlighted the benefits and drawbacks of both an LLP and a regular partnership firm. Comparing the benefits and drawbacks of an LLP and a partnership firm will assist you in making an informed decision.
| Limited Liability Partnership (LLP) | Partnership Firm |
| Merits (Pros) Limited Liability Perpetual Existence Branch Office Distinct Legal Identity Low Compliances Quick & Affordable Incorporation Branch Office Low Tax Rate High Investment Potential Separate & Flexible Management Demerits (Cons) Ownership Transfer Can be Challenging Lack of Strong Management Structure High Penalties for Non-Compliances Public Disclosure of Records & Documents | Merits (Pros) Optional Registration Low Compliance Flexible in Operating Simple Formation Low Tax Rate High Investment Potential Separate & Flexible Management Demerits (Cons) Unlimited Liability for Partners Limited Existence Limited Investment Potential No Transfer of Ownership No Separate Management No Tax Benefits for Partners |
Benefits of LLP Registration in India
To address all of the shortcomings of a conventional partnership form, a limited liability partnership was created. Therefore, it is more like a Limited Company than a conventional Partnership Firm in the majority of its qualities. Because of this, it can provide a number of advantages that a firm cannot. All of these LLP benefits are listed in the table below for your thorough comprehension.
- Limited Liability- Partners have limited accountability under the terms specified in the LLP Agreement. Their personal assets are not at risk when the LLP’s debt is paid off.
- Attractive for Investors- The LLP gains credibility and attracts investors with its unique legal character. Before putting money into the LLP, investors can review its data.
- Preferred by Creditors- Banks and Financial Institutions prefer to lend funds to businesses registered with the government. This is because their credentials and financial status are verifiable in real time.
- Easy to Incorporate- Because the application process is entirely online, incorporating an LLP is quick, simple, and reasonably priced. From filing to paperwork and authorized signatures, every step is done online.
- Lower Compliances– An LLP is only required to submit its financial statements and annual returns to the ROC once every fiscal year. Because of this minimal degree of compliance, running an LLP is very simple and inexpensive.
- Flexible to Manage– An LLP is managed according to the terms of the LLP Agreement. Also, partners from among themselves choose and appoint designated partners as the sole authority to control the management
Frequently Asked Questions
Q1. What are the benefits of LLP registration for Small Businesses?
Since there are fewer rules to follow, an LLP is the best form for small firms in India. For example, until the capital surpasses 25 Lac or the turnover exceeds 40 Lac, checking its accounting records is optional.
Q2. Is the LLP structure suitable for my business?
A number of factors influence the choice of business structure. These consist of the number of proprietors, capital, style and size of operations, company goal, etc. Before making a decision, we advise entrepreneurs to carefully weigh the benefits and drawbacks of LLP. Contact us if you require any additional assistance.
Q3. What is the LLP Registration cost in India?
The LLP Registration cost depends on the number of partners, capital, and the location of the LLP’s registered office address. Contact Consult Value startup advisors through chat or call to know the exact cost of LLP Incorporation in your case. The expenses to set the LLP are primarily towards the following items
- Digital Signature
- Professional Fee: Starts@ ₹2499/- at Consult Value
- ROC Fee: Varies on the capital level
- Stamp Duty on LLP Agreement: Varies based on capital and the state.
Q4. What is an LLP Identification Number (LLPIN) ?
The LLPIN is a special number that the Registrar of Companies assigns to the LLP in order to identify it. In addition to being noted on the Certificate of LLP registration, it is awarded following LLP registration.
Q5. Is an LLP a better business type for raising funds from private investors ?
Compared to a regular partnership, an LLP can raise money more easily. This is due to the fact that it limits its owners’ liability to a predetermined, mutually acceptable ratio. Conversely, a traditional partnership imposes unlimited or 100% liability on its partners. Furthermore, an LLP’s survival is independent of the partners’ lives, in contrast to a regular partnership.
Q6. Who contributes capital to LLP ?
In an LLP, the partners are required to introduce the capital. The LLP Agreement specifies the partners mutually agreed-upon share of the capital contribution.
Q7. What is the minimum and maximum capital required to start an LLP ?
A limited liability partnership is not subject to any minimum or maximum capital requirements under the LLP Act. This implies that any amount of money can be used to launch an LLP.
Q8. What is the process for LLP registration ?
We have discussed the step-wise process in great detail above in the process section; the LLP Registration Process in 4 steps:
- Step 1: Documentation
- Step 2: Select & Reserve the name of the LLP
- Step 3: Fill Out the FiLLiP Form for LLP registration online
- Step 4: Issue of Certificate of Incorporation
Q9. What are the key LLP documents required for Registration ?
LLP paperwork needed for All partners’ KYC documents are included in the registration process. Additionally, LLP’s evidence of registered address is required. This must be accompanied by the registered office address owner’s no objection certificate (NOC). Following incorporation, you also need to provide the ROC with the notarized and stamped LLP deed.
Q10. What is the LLP’s annual compliance?
The LLP is required to keep accurate books of accounts. The LLP’s authorized partners have 180 days from the end of the fiscal year to prepare the annual financial statement. The following yearly compliance needs to be completed by the deadline. Serious legal repercussions may result from breaking this.
