In recent years, a limited liability partnership or LLP has gained a lot of popularity, Of the many benefits offered by an LLP, the fact that it combines the features of a partnership firm and a private limited company makes it a unique business structure. Today, we are going to talk about the procedure for LLP registration in India under the Limited Liability Partnership Act, 2008.
Essential points for LLP registration in India
- An LLP must have at least two partners. Further, these partners can be either individuals or body corporates.
- The LLP must have a registered office in India. Further, this office should be for sending/receiving communication.
- An LLP must have at least two designated partners to carry out all the acts of the LLP. Further, they must be Indian residents.
- All designated partners must hold a Designated Partner Identification Number (DPIN). The Ministry of Corporate Affairs (MCA) provides the DPIN.
- You must execute a Limited Liability Partnership Agreement between all the partners of the LLP. Also, in the absence of an agreement, Schedule I of the LLP Act, 2008 is applicable.
- The LLP name must be unique.
- You must submit the incorporation form with the prescribed documents to the Registrar.
Process for LLP Registration
Here is a process for LLP registration in India:
Apply for DSC
The first step in the process of registration is applying for a Digital Signature Certificate (DSC) for atleast one designated partner of the LLP. This is important since you will file most LLP documents online that require a digital signature. Therefore, it is better if two designated partners obtain DSC(s) from a recognized agency.
Apply for DPIN
Apart from the DSC, the designated partners also need to hold DPIN. However, as per the latest Form Fillip introduced by the Ministry for registration of LLP, the DPIN shall be allotted along with the registration itself and therefore you don’t need to obtain DPIN separately. Maximum three DPIN can be obtained along with the registration of the LLP.
Reserve LLP Name
Next, you need to reserve a name for your proposed LLP. However, before submitting the name reservation request, you must check for its uniqueness via the name search facility on MCA’s website. This will ensure that the selected name is not already in use. The Registrar approves names that follow certain guidelines. You can provide up to four proposed names for your LLP. (Each attempt two names)
Incorporate the LLP
- File the Form for incorporation of Limited Liability Partnership (FiLLiP) with the Registrar. Also, ensure that the registrar has jurisdiction over the place where your registered office is located. Further, remember that FiLLiP is an integrated form.
- Subscriber’s Sheet, Consent of the designated partners, NOC and proof of Registered office and details of interest of Designated partners in any other entity are the documents to be attached in form Fillip.
- Pay the prescribed fees.
File the LLP Agreement
An LLP agreement is an agreement between the members of the LLP to govern the rights and duties among them. The contents of an LLP Agreement are as follows:
- Name of the LLP
- Names and addresses of all designated partners of the LLP
- Amount of contribution and the interest on the amount
- The ratio of sharing profits
- Remuneration of all partners
- List of the duties and rights of all partners
- The object of the LLP – the proposed business
- Rules that will govern the LLP
- Any other relevant clause for the governing of LLP
Ensure that you file the LLP agreement in Form 3 on the MCA website. Also, the time limit for this form is 30 days from the date of incorporation of the LLP. Further, ensure that the agreement is on stamp paper of value as per your state.
Typically, the entire process of LLP registration takes up to 15 days provided all the documents are in place. We hope that this article helped you understand the process of registering your LLP in India. If you have any further questions or are looking for a professional team to register your LLP, then please drop us a line. Our team will be glad to assist you. Good Luck!