LLP Registration in India
LLP Registration in India has become an alternative form of business that provides the advantages of a Company and the flexibility of a Partnership firm into a single organization. The Concept of LLP in India was introduced back in 2008 by the Limited Liability Partnership Act of 2008. This unique hybrid is suitable for setting small, medium-sized businesses.
It is very easy to manage and incorporate a Limited Liability Partnership in India. To register an LLP minimum of two partners are required, there is no upper limit as such. The LLP agreement states the rights and the duties of the Partners. In an LLP one partner is not responsible for the misconduct and negligence of the other partner. The partners are responsible for the compliances and all the provisions that are specified in the LLP agreement.
Proprietorship vs Limited Liability Partnership (LLP) vs Company
|Definition||Unregistered type of business entity managed by one single person||A formal agreement between two or more parties to manage and operate a business||A Limited Liability Partnership is a hybrid combination having features similar to a partnership firm and liabilities similar to a company.||Registered type of entity with limited liability to the owners and shareholders|
For One Person Company
|Registration Time||7-9 working days|
|Promoter Liability||Unlimited Liability||Limited Liability|
|Governance||–||Under Partnership Act||LLP Act, 2008||Under Companies Act,2013|
|Transferability||Non Transferable||Transferable if registered under ROF||Transferable|
Documents Required For LLP Registration
Passport (Foreign Nationals Only)
Voters Identity Card
Passport Size Photo
Recent Utility Bill
LLP Registration FAQ’s
1. How many people are required to incorporate an LLP?
A Limited Liability Partnership must have a minimum of two Partners and an LLP can have any number of Partners.
2. How to be a Partner in an LLP?
The designated Partner must be a natural person who is above 18 years of age. LLP Act 2018 allows a foreign national including Foreign Companies to incorporate an LLP in India, provided at least one designated partner is Indian.
3. How much capital is required to start a Limited Liability Partnership?
An LLP can be started with any amount of money there is no such minimum requirement. A partner may contribute both tangible and intangible property.
4. What is a Digital Signature Certificate?
A DSC is helpful in identifying the sender or the signee electronically. The Ministry of Corporate Affairs (MCA) has made it mandatory for all the designated partners to apply with the Digital Signatures.
5. What is DPIN?
Designated Partner Identification Number is a unique identification number that is assigned to all existing and proposed Designated partners of an LLP. All the present or proposed Directors must have a DPIN.
6. How long does it take to incorporate an LLP?
The time taken for incorporation depends on the submission of relevant documents by the client as well as the Approvals from the Government authorities. Indiabizfiling can help you Incorporate an LLP in 14-20 days.
7. Can NRIs/ Foreign Nationals be designated partners in LLP?
An NRI can be a designated partner in a Limited Liability Partnership if he has a Designated Partner Identification Number. However, at least one Designated Partner in the LLP must be a resident Indian.
8. Do LLPs allow Foreign Direct Investment (FDI)?
FDI is allowed under automated route in an LLP by the Foreign Investments Promotion Board (FIPB). Note: Foreign Institutional Investors and Foreign Capital Investors are not allowed to invest in LLPs.
9. Can we convert a Partnership Firm into an LLP?
An existing partnership firm or a Company that is unlisted can be converted into an LLP. This conversion into an LLP brings in many benefits.
10. What documents are required for incorporating an LLP?
For the Partners 1. PAN or Passport 2. Any Identity proof 3. Bank statements Registered office proof 4. NOC from the landlord to use the premises of the registered office 5. Any utility bills of the premises which are not less than two months.
11. Is LLP a good idea?
LLP is a combination of both Partnerships and a Limited Company, offering the advantages of both the companies.
12. What are the compliances for LLP?
An LLP is supposed to file 1. LLP Annual return by Filing Form 11. 2. Final Statement of Account and Solvency 3. Income Tax Return.
13. Is it possible for an LLP to raise funds?
An LLP cannot raise funds from the public in any form. In an LLP only partners can contribute their capital and the liability of the Partners is limited to the extent of their contribution.
14. What is LLP registration?
LLP Registration is the registration of an entity that provides the advantages of a Company and the flexibility of a Partnership firm in a Single organization.
15. Which is better LLP or Private Limited Company?
It is always better to incorporate an LLP over a Private Limited Company as though both offer the same features. The cost to incorporate an LLP is less as compared to the Private Limited Company. Similarly, the LLP owner holds the ownership as well as control over the Company. The Compliances in the LLP are fewer as compared to a Private Limited Company.
16. How to start an LLP?
The process of starting an LLP is completely online. All you need to do is submit the documents online. Regular follow-ups will be done by our consultants.
17. How many people are required to incorporate an LLP?
A minimum of two partners is required to incorporate an LLP.
18. What are the benefits of the LLP?
There are various reasons why one should incorporate an LLP. The registration cost is low. No requrement for minimum contributuion. No limits on the owners of the business. It is not necessary to carry audit. There are fewer tax compliances