Limited Liability Partnership
Limited Liability Partnership Registration
Limited Liability Partnership (LLP) is considered as one of the easiest forms of business entity introduced under limited liability partnership act, 2008. LLP full form is limited liability partnership. This form of business entity limits the liabilities of its owners and simple to manage.
This business structure is very popular among professional, micro & small businesses (family owned or
closely owned) because of its easy incorporation process & few compliance requirements. Partners in limited liability partnership are not personally liable to the creditors of the company. If any problem occurs,
creditors/banks can only sell the assets of the company but not the director’s personal assets.
LLP Registration
Limited Liability Partnership (LLP) Registration in India. A
minimum of two persons above 18 years of age are required
for LLP registration in India.
Limited Liability Partnership Act 2008
Limited liability partnership act 2008 is the act introduced by the central government to make provisions for the incorporation and regulations for limited liability partnership in India. LLP is a legal entity separate from its partners. As per LLP act, LLP itself enter into contracts as a separate legal entity. In LLP, accounts audit is mandatory in case turnover of a company in any financial year exceeds Rs.40 lakhs & contribution made by partners exceeds Rs.25 Lakhs.
Eligibility For LLP Registration In India
Checklist For Limited Liability Partnership In India
In order to get eligible for LLP registration under limited liability partnership act 2008, you need to
understand and fulfill certain important requirements –
At least two partners
No minimum requirement of capital
Minimum one partner should be an Indian resident
Registered office should not be situated in a commercial space
Minimum 2 members are required for LLP incorporation. No upper limit to the maximum number of
partners for LLP formation.
One of the designated partners in LLP must be an Indian.
DPIN for all partners.
DSC for all partners.
Address proof of LLP registered office (You can even use your rented home as registered office as long as
you are having NOC from the landlord).
No minimum amount of capital required as contribution for LLP company.
The nomination of a natural person in case body corporate is a partner.
Documents Required For LLP Registration
There are various documents which you need to provide in case of LLP registration. Early & Correct
submission of documents leads to fast application approval –
Documents Of Partners
Photograph – Latest passport size photograph of all partners is a mandatory requirement for LLP
registration. Passport size photograph should be clear, preferably with white background.
PAN card of partners – PAN cards of all the designated partners are required at the time of LLP
registration. It serves as a primary identification proof.
Identification proof of partners – You can submit any of the identification proofs in support of your
application for LLP registration –
Voter’s ID card
Passport
Aadhaar card
Driving license etc.
Documents Of LLP
Proof of registered office address – Registered office address proof needs to be submitted at the time
of LLP registration or within 30 days of incorporation. In case the registered office is rented, you need to
submit rent agreement and NOC from the landlord. Utility bills like telephone bill, gas bill, electricity bill
etc. can also be submitted as a registered office address proof but it should not be older than 2-3
months.
Digital signature certificate – It is mandatory for one of the designated partners to opt for digital
signature certificate
Important Forms In Limited Liability Partnership In India
Some of the important forms related to Limited liability partnership are as follows –
RUN-LLP – RUN-LLP form is used to reserve a name for LLP.
Form FiLLip – Form FiLLip is used to submit application for incorporation of limited liability partnership.
Form Appendum to Fillip – This form contains details of designated partners as well as partners of LLP.
Form 4 – Form 4 is used to make modifications in name or address or designation of a partner or in
consultation of becoming a partner. It is also used to give notice of appointment, cessation.
Form 5 – Form 5 is used to submit application for name change.
Form 11 – Form 11 is used to submit annual returns of limited liability partnership to the income tax
department.
Form 15 – Form 15 is used to submit application for change in registered office place.
Form 17 – Form 17 is used to submit application for converting a firm into LLP.
Form 18 – Form 18 is used to submit application for converting private company /unlisted public
company into LLP.
Compliance For LLP Company In India
Every LLP needs to follow the below mentioned compliance requirements –
Post Incorporation Compliances
An LLP is expected to complete the following compliances after LLP registration –
1 Partnership agreement filing
2 Opening of bank account
3 Apply for PAN & TAN
Annual Compliance Requirements
There are many compliance requirements which an LLP needs to fulfill annually –
1 Income tax return submission of all partners
2 LLP annual return submission
3 Statement of accounts and solvency
Factors To Be Considered While Choosing Your LLP Name
For every business entity, company name is very important. It is the first impression for your stakeholders,
suppliers and the buyers. The company name should be short, attractive and relevant. You need to take care of various factors while choosing a name for your LLP -
Simple & short - The name of your company should be concise and short. People should be able to
pronounce it easily and recollect the name as early as they read it or hear it.
Meaningful - Your company name should be related to your business. It should make your brand value
in the market.
Not illegal or offensive - The name of your company should not be offensive/illegal. It should not be
abusive and against the beliefs and customs of any religion or group.
Suffix - In case of a limited liability partnership, your company name should end with suffix “LLP”. For
example - In case of a private limited company, the company name ends with suffix “Private Ltd.”
Unique name - Your company name should not be identical or similar to the name of an existing
trademark or a company.
Blacklist – Abstracts, adjectives and generic awards are denied. Even words like Bank, exchange and
stock exchange are also not allowed to be used.
Check LLP Name Availability In India
Naming an LLP is often complex and a time consuming process because of several rules & regulations which an applicant needs to follow before naming an LLP. As per Companies act 2013 & LLP act 2018, we have to take that name into consideration which is acceptable and compliant with the rules & regulations of these acts. If you want to search your proposed LLP name to identify that whether the name you have selected or any similar name exists, go to MCA portal and search for the name availability.