Limited Liability Partnership (LLP) Registration Online

LLP Registration is a widely recognized and preferred business structure globally. Both LLPs and Private Limited companies are registered with the Ministry of Corporate Affairs under the Central Government. Choose to register your LLP with Filing Buddy with no hassles.

LLP is a preferred form of partnership in a business structure because of limited liability. Creditors or Investors cannot claim partners' personal assets, property, or income, in case the business fails.

A Limited Liability Partnership (LLP) is a partnership in which the partners have limited liability. Each partner is liable to the extent of their capital contribution to the LLP and not personally liable for the debts or obligations of the LLP. 

LLP is governed by the Limited Liability Partnership Act 2008. An LLP is considered a separate legal entity, which means it has its own legal identity, and its existence is not dependent on the partners. LLP registration needs two designated partners responsible for the management and operations of the LLP. The registration requires obtaining a Digital Signature Certificate (DSC) and Designated Partner Identification Number (DPIN), selecting a name for the LLP and filing the incorporation documents with the Ministry of Corporate Affairs (MCA). 

• Limited liability:

In an LLP or Limited Liability Partnership, partners have limited liability implying that liability is limited to the amount of their contribution to the entity. This protects the personal assets of LLP, and they are not required to pay for any losses or debts. Innocent partners are not held accountable for the misconduct or negligence of other partners or the entity.

• Separate legal entity:

An LLP enjoys the benefits of being a separate legal entity, meaning it can own assets, sue, and be sued in its own name. This feature also ensures that a partner's liability is limited to their contribution, shielding them from any costs incurred by other partners' misconduct or negligence.

• Flexible agreement:

Partners in an LLP have the flexibility to draft their agreement as they see fit, as long as it adheres to the rules and regulations, rights, and duties. The flexibility allows the partners to customize the agreement to their business needs.

• No manager/owner distinction:

An LLP is a more accessible legal structure to adopt. The partners own, manage, and run the business, which differs from a private limited company where the directors may vary from shareholders. However, angel investors and venture capitalists only sometimes invest in firms registered as LLPs.

• Less compliance needed:

An LLP requires only three compliances per year, making it easier to manage and run when compared to a private limited company, which has many more compliance requirements and regular audits.

• Easy to wind up:

In addition to being easy to start, winding up an LLP is straightforward and takes around two to three months. In contrast, it can take more than a year to close a private limited company.

• Separate legal entity:

LLP is a separate legal entity from its partners, which means it can own assets, enter into contracts, and sue or be sued in its own name.

• Limited liability:

The liability of partners in an LLP is limited to their capital contribution, which means they are not personally liable for the debts or obligations of the LLP.

• Flexible management structure:

LLPs have a flexible management structure where partners can actively participate in the management and operations of the business.

• No minimum capital requirement:

There is no minimum capital requirement for LLP registration in India, which means the partners can start with any capital.

• Taxation:

 LLPs are taxed as a partnership firm, which means they are not subject to corporate tax. The partners are taxed on their share of the profits.

• Easy to incorporate:

 LLP registration in India is a simple and easy process, with fewer compliance requirements than a company.

• Audit requirement:

 An audit is required for LLPs with an annual turnover of more than Rs. 40 lakhs or a capital contribution of more than Rs. 25 lakhs.

• Compliance requirements:

LLPs must comply with various statutory requirements, such as filing annual returns, maintaining proper books of accounts, and conducting audits.

Here is a step-by-step guide to registering an LLP in India with ease:

• Step 1:

Designated partners apply for DSC (Digital signature certificate)

• Step 2:

As the next step applies for a Director Identification Number (DIN)

• Step 3:

The LLP-Reserve Unique Name (LLP-RUN) form is used to reserve a name for the proposed LLP. The Central Registration Centre will handle the form under Non-STP. It's recommended to check the name's availability on the MCA portal before proposing it.

• Step 4:

Incorporating the LLP occurs in this step:

File the incorporation form and required documents with the Registrar of the State.

Pay the LLP registration fee according to Annexure A.

If the designated partner nominee doesn't have a DIN or DPIN, the Designated partner nominee can use this form to register for DIN or DPIN.

Only two individuals can apply for the DIN/DPIN allotment.

The reservation application can also be made via FiLLiP.

After the proposed name is approved, it can be used in the registration form.

• Step 5:

File the LLP agreement, which serves as the foundation for the LLP. It governs the mutual rights and duties of the LLP and its partners.

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