STARTUP REGISTRATION SIMPLIFIED
Limited Liability Partnership (LLP) is a new corporate structure that combines the flexibility of a partnership and the advantages of limited liability of a company at a low compliance cost. In other words, it is an alternative corporate business vehicle that provides the benefits of limited liability of a company, but allows its members the flexibility of organising their internal management on the basis of a mutually arrived agreement, as is the case in a partnership firm.
Owing to flexibility in its structure and operation, it would be useful for small and medium enterprises, in general, and for the enterprises in services sector, in particular. Internationally, LLPs are the preferred vehicle of business, particularly for service industry or for activities involving professionals.
LLP REGISTRATION PROCESS
Step1: Identify a minimum of 2 designated partners:
For registering LLP, a minimum of 2 partners and 2 designated partners are required. Partners could be individuals, companies or LLPs, but only individuals can become designated partners of LLP. A partner need not be a designated partner of LLP.
Partners are persons who own the LLP and manage it. Designated partners are responsible for compliance under the LLP Act.
Step2: Obtain a Director Identification Number (DIN) for all proposed designated partners.
The proposed Designated Partners must have a DIN allotted by the Ministry of Corporate Affairs, Government of India. DIN can be obtained by filing an online application with a copy of ID and address proof. Indian nationals must have a PAN for applying a DIN.
Step3: Obtain a Digital Signature Certificate (DSC) for all of the designated partners:
During the registration process, all the documents are submitted to the ROC online through www.mca.gov.in. These forms need to be authenticated by signing it using a DSC issued by the Certifying Authority in India. all of the promoters and designated partners should have a digital signature certificate to authenticate documents that are submitted to the ROC.
Step4: Identify the location and contribution of the LLP:
It is important to have a proper address for the LLP's registered office. The address need not be a commercial location for registering a LLP. It could be the residential address of one of the promoters or any other identifiable address. The ROC will send all the correspondence relating to the LLP to the registered office address. The jurisdiction of the ROC will depend on the location of the registered office.
For LLP, there is no minimum contribution requirement.
Step5: LLP Name Application:
The name of the LLP should end with the words "LLP" or "Limited Liability Partnership". Before proceeding with the incorporation process, an application has to be filed for getting the LLP name approval from the ROC. It is preferable to submit the application with multiple names in the order of preference. LLP name application must be in line with the LLP Name Guidelines.
LLP name application is filed in Form 1 to the Ministry of Corporate Affairs, Government of India, to check the availability of the proposed name for registration of a new LLP.
The approved name of LLP shall be valid for a period of 3 months from the date of approval. LLP registration documents have to be executed and filed within this time frame. LLP registration documents have to be executed and filed within this time frame.
Step6: Execution of LLP registration documents:
After the LLP name is approved, the LLP incorporation documents have to be executed by the promoters.
Step7: Consent of all partners:
The proposed partners of LLP should consent to act as the partner or Designated Partner
Step8: Submission of LLP registration documents to the ROC:
Once the documents are executed, the same has to be submitted to the ROC of the respective state for the LLP registration.
Step9: LLP Registration and COI:
The ROC will register the LLP and issue a COI.
The COI is now issued by the ROC in digital form with the DSC. No physical certificate will be issued by the ROC office.
Step10: Execution of LLP Agreement:
By subscribing to the LLP incorporation documents, all partners agree to enter into LLP agreement within 30 days. Hence, all partners need to execute and file the LLP agreement within this time frame.
LLP can commence its business only after obtaining the COI.
Please find below the checklist of documents and information required for to initiate the process:
For DIN & DSC (First Stage):
For Name Approval:
Note: Please note that we generally take 2 - 3 working weeks to complete the entire process of LLP registration, subject to ROC working.