Overview

Starting a business in India involves choosing the right structure to balance flexibility, compliance, and liability protection. One of the best options for professionals and small businesses today is the Limited Liability Partnership (LLP). LLP merge the benefits of a partnership and a company, offering partners limited liability while allowing them to manage the business directly.

Limited Liability Partnership registration in India is an excellent choice for entrepreneurs who want the element of flexibility of a partnership with the benefits of limited liability and fewer compliance burdens. By registering an LLP, you create a professional and proper structure that inspires trust, protects your assets and also helps you to simplifies your tax and legal responsibilities.

If you’re planning to register an LLP, don’t hang back to reach out to our expert team. We ensure a hassle-free, affordable, and quick LLP registration experience.

Why

Registering an LLP in India offers numerous benefits:

1. Limited liability: Personal assets of partners are safely protected. Partners’ liability is limited as per their agreed contribution.
2. Separate legal entity: The LLP is distinct from its partners. It can own assets, sue, and be sued in its name.
3. Flexible management: No complex corporate structure; partners can directly manage the business.
4. No minimum capital requirement: Unlike private limited companies, there is no minimum paid-up capital requirement.
5. Lower compliance burden: LLPs have fewer compliance requirements compared to private limited companies, reducing annual costs.
6. Perpetual succession: The LLP continues to exist even if partners change.
7. Tax benefits: LLPs are taxed at a particular flat rate of 30% on profits. Dividend distribution tax (DDT) is not applicable.

Process

Registering an LLP in India is entirely online through the Ministry of Corporate Affairs, viz. (MCA) official portal. Here is the step-by-step Limited Liability Partnership registration process:

1. Obtain Digital Signature Certificate (DSC): Each designated partner must obtain a Class 3 DSC as all documents are digitally signed during registration.
2. Application for Director Identification Number (DIN): If the designated partners do not already have a DIN, it can be applied for in the same form used for LLP registration.
3. Name reservation: File RUN-LLP (Reserve Unique Name – LLP) on the MCA website to get approval for the proposed LLP name.
4. Filing incorporation form: Submit Form FiLLiP, viz. (Form for incorporation of Limited Liability Partnership) along with the required documents, details of partners, and registered office address.
5. LLP Agreement: Within the duration of 30 days of incorporation, file Form 3 with the MCA, attaching the LLP agreement signed by all partners. This agreement defines rights, duties, and profit-sharing ratios.
6. Certificate of Incorporation: Once the Registrar verifies the documents, the LLP will receive a Certificate of Incorporation containing the LLP Identification Number (LLPIN).

Documents

For a smooth registration process, you need the following Limited Liability Partnership registration documents:

For partners:

• PAN card (mandatory for Indian nationals).
• Passport (for foreign nationals).
• Address proof (Aadhaar card, voter ID, or driving license).
• Passport-sized photographs.
• Email ID and phone number.

For registered office:

• Proof of address (electricity bill, rent agreement, or property ownership papers).
• No-objection certificate (NOC) from the property owner.

For the LLP agreement:

• Draft LLP agreement on stamp paper (value depends on the state).

Fees

The LLP registration fees depend on the proposed LLP’s contribution amount and state stamp duty. Here’s a rough estimate:

• Government fees: It depends upon the authorized capital of the LLP and the state of incorporation. It may vary case to case.
• Stamp duty: Varies from state to state.

Timeline

The LLP registration process in India typically takes 10 to 20 business days (around 2–4 weeks), including steps like name reservation, FiLLiP filing, and issuance of the Certificate of Incorporation. The LLP Agreement must be filed within 30 days of incorporation. Timelines may vary slightly based on document accuracy and MCA processing speed.

FAQs