You are probably already familiar with what the best business structure is for your business as an entrepreneur. We assist you in not only making the final choice but also in understanding the registration process in a simple way if you have selected Limited Liability Partnership (LLP).
LLPs have the advantages of both Partnerships and Private Limited Companies. They are a good combination of both structures. But let’s get the basics out of the way first!
- The LLP Act 2008 first introduced the concept of LLP in India.
- It gives designated partners flexibility while maintaining the separation of their legal identities from their companies.
- A partner is only responsible to pay the amount he or she contributed to the company.
- Comparatively, LLP businesses have fewer compliance requirements to adhere to than other types of businesses.
- An LLP business structure requires at least two partners, of which one must be an Indian citizen residing in India for at least 182 days in the year preceding the formation of the firm.
- An LLP agreement must contain provisions specifying the rights and responsibilities of the partners, as well as the provisions of the agreement as a whole.
The reasons cited above explain why LLP registration has become one of India’s most popular business structures. It takes around 15-18 working days to register an LLP. This process is simple and straightforward. For the registration process to go smoothly, you will need the assistance of a practicing professional. Vakislearch can help! Get started today!
Step 1: Obtaining a Digital Signature Certificate (DSC)
Due to the online nature of the LLP registration process in India, all designated partners must procure DSCs. A DSC will be used to digitally sign all documents before they are submitted to MCA. To apply for DSC, every designated partner should supply a PAN card, proof of identity, proof of address, and a passport-sized photo.
Step 2: Obtain the Director Identification Number (DIN)
LLP-designated partners must also complete the DIN. This is done by completing the DIR-3 form. DINs are assigned by state ROCs (Registrar of Companies). Along with the self-attested copies of Aadhaar and PAN cards, the DSCs of the designated partners and the professional are also required.
Step 3: Approval of the LLP’s name
Choosing the name options for the company is an extremely important step at this stage. RUN-LLP forms (Reserve Unique Name – Limited Liability Partnership) need to be filed on the MCA site. We check every name for availability before we submit it to make sure it’s absolutely unique and fewer chances of it being rejected for some reason or another. When submitting the form, you may submit two name options for approval. In the event that your first two name choices are rejected, you can submit two more name suggestions.
Step 4: LLP Incorporation
In India, you must file a Form for the incorporation of a Limited Liability Partnership (FiLLiP) in order to register an LLP company. If the designated partners do not have DIN, then they should fill out the appropriate form in order to obtain it. A certificate proving business operations in India will be issued as soon as the FiLLiP is accepted. In addition, all Indian LLP firms are assigned the LLPIN (Limited Liability Partnership Identification Number) which has seven digits.