LLP Registration in 5 Easy Steps

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LLP Registration in 5 Easy Steps 

The Limited Liability Partnership Act came into force in 2008. It introduced a new form of organization for entrepreneurs, i.e LLP, in the year 2010. LLP is a partnership formed and incorporated under the LLP Act 2008. It incorporates the benefits of both partnership firm and company. This is one of the reasons that it has become a preferred form of organization for entrepreneurs. 

LLP is a separate legal entity where the members hold limited liabilities to the extent of their capital contribution. An LLP is required to have a minimum number of 2 partners but there is no such requirement for maximum partners. Among the partners of the LLP, at least two shall be designated partners, who shall be individuals. From the two designated partners, at least one partner shall be a resident in India. 

The process of incorporation or registration of an LLP is very easy as well as cheap. In this article, we will understand the registration of LLP in a few easy steps.  


Benefits of Incorporating an LLP 

The following are the advantages of forming an LLP: 

  • The liability of partners in an LLP is limited as compared to the liability of partners in partnership firms, which is unlimited. 
  • The cost of formation of an LLP is low and it is also very easy to form an LLP.
  • There is no requirement for minimum capital contribution by partners in the LLP.
  • The partners of the LLP cannot be sued for any dues pending against the LLP. 
  • The partners of the LLP are only responsible for their own acts. They can not be held liable for the acts of other partners or the LLP. 
  • The compliances and restrictions applicable on LLP are low as compared to compliances enforced on companies.  
  • The business structure of the LLP is very flexible which enables it to add more limited partners at any time. 
  • Income received by the partners from LLP is not taxable under the income tax act. Only the personal income of the partners is chargeable to tax. 

Documents Required for Registering an LLP

For the registration of an LLP, both the LLP and the partners need to submit some important documents which are as follows: 


Documents of Partners: 

PAN card or any other identity proof of all partners: PAN card acts as a primary identity proof of any person. Hence all partners need to submit their PAN cards at the time of registration of LLP. In case, any partner does not have a PAN card he or she can submit any other ID proof.

  • Address proof of all partners: For the address proof the partners can submit any document from among the Voter ID card, Driving license, or Aadhar card. It should be noted that the details mentioned in these documents must be the same as that of PAN. 
  • Residence proof of all partners: For the residence proof of the partners, they can submit documents like a bank statement, mobile bill, telephone bill, electricity bill, etc. Note that the bills to be submitted should not be older than 3 months. 
  • Photographs: A passport size photo of the partners should also be submitted at the time of registration. 
  • Passport: If any partner is a non resident of India then it is necessary to submit his or her passport at the time of registration. The address proof of such non resident shall also be submitted along with the passport. 


Documents of LLP: 

  • Address proof of the registered office of the LLP: It is necessary to submit the address proof of the LLP at the time of registration. If the registered office is rented or leased, then the rental agreement or lease deed shall be submitted along with the consent of the owner or landlord of the office. The identity proof of the owner or landlord shall also be submitted along with the other documents. Note that the address proof shall not be older than 2 months. 
  • Digital Signature Certificate: At the time of registration of LLP, it is necessary to submit the digital signature certificate of one of the partners along with the documents. 

How to Register an LLP in 5 Simple Steps.? 

The process to register an LLP is as follows: 

Step 1: Obtain Digital Signature Certificate 

The process of registration of an LLP is online, therefore it is necessary to obtain a digital signature certificate. A digital signature certificate of the designated partner of the LLP should be obtained before applying for the registration of LLP. 

Step 2: Apply for DIN 

Once the partners have obtained their digital signature certificate, the next step is to apply for a DIN. The partners can apply for the DIN by filing Form DIR 3 along with the scanned copies of Aadhar or PAN card. 

Step 3: Name reservation 

The next step in the LLP registration process is to reserve the name of the LLP. For this LLP-RUN i.e. Limited Liability Partnership - Reserve Unique Number is filed which is processed by the Central Registration Centre. Although, it is advisable to use the free name search facility provided on the MCA portal before filing the LLP-RUN. 

While using the search facilities, the system provides a list of closely resembling names of existing LLPs. This helps the LLP to choose a unique name that is not similar to any existing LLP or company. It is necessary to choose a unique name because the registrar only approves the names which are unique and are not undesirable in the opinion of the central government. 

A prescribed amount of fees is charged while filing the LLP-RUN form. This form is then approved or rejected by the registrar. In case of a rejection, the LLP can resubmit the form within a period of 15 days after rectification of the defects. 

An LLP can propose two names in the forms for the approval of the registrar. 

Step 4: Incorporation of LLP 

Once all the above steps are done, the main process of incorporation begins which is as follows: 

  • File the Form for Incorporation of Limited Liability Partnership i.e. FiLLiP, with the registrar, who has the jurisdiction in the state where the registered office of the LLP is situated. 
  • Pay the incorporation fees as prescribed in Annexure A. 
  • In case any designated partner of the LLP does not have a DIN or DPIN, then he or she can also apply for the allotment of DIN or DPIN along with FiLLiP. 
  • The application for allotment of DIN or DPIN is only allowed to be filed by two designated partners. 
  • Once the proposed name of the LLP is approved by the Central Registration Centre, it shall be filed as the name of the LLP. 

Step 5: File LLP Agreement 

At the last and final step, the Limited Liability Partnership (LLP) Agreement is filed. This agreement governs the mutual rights and duties of the partners of LLP. The LLP agreement is filed online in Form 3 on the MCA portal within 30 days from the date of incorporation of the LLP. The  LLP can print the LLP Agreement on the stamp paper. 

Cost Involved in Registration of LLP 

The cost involved at each step of the LLP registration process is as follows: 


 

Steps 

Cost involved

Step 1 (DSC)

Approximately Rs 1500 to Rs 2000 for 2 partners 

Step 2 (DIN)

Rs 1000 for 2 partners

Step 3 (Name Reservation)

Rs 200

Step 4 (LLP Incorporation)

If the capital contribution is up to Rs 1 lakh theN Rs 500 and if the capital contribution is between Rs 1 lakh and 5 lakh then Rs 2000

Step 5 (LLP Agreement)

If the capital contribution is up to Rs 1 lakh theN Rs 50 for Form 3 and stamp duty. 

 


The Limited Liability Partnership Act came into force in 2008. It introduced a new form of organization for entrepreneurs, i.e LLP, in the year 2010. LLP is a partnership formed and incorporated under the LLP Act 2008. It incorporates the benefits of both partnership firm and company. This is one of the reasons that it has become a preferred form of organization for entrepreneurs. 

LLP is a separate legal entity where the members hold limited liabilities to the extent of their capital contribution. An LLP is required to have a minimum number of 2 partners but there is no such requirement for maximum partners. Among the partners of the LLP, at least two shall be designated partners, who shall be individuals. From the two designated partners, at least one partner shall be a resident in India. 

The process of incorporation or registration of an LLP is very easy as well as cheap. In this article, we will understand the registration of LLP in a few easy steps.  


Benefits of Incorporating an LLP 

The following are the advantages of forming an LLP: 

  • The liability of partners in an LLP is limited as compared to the liability of partners in partnership firms, which is unlimited. 
  • The cost of formation of an LLP is low and it is also very easy to form an LLP.
  • There is no requirement for minimum capital contribution by partners in the LLP.
  • The partners of the LLP cannot be sued for any dues pending against the LLP. 
  • The partners of the LLP are only responsible for their own acts. They can not be held liable for the acts of other partners or the LLP. 
  • The compliances and restrictions applicable on LLP are low as compared to compliances enforced on companies.  
  • The business structure of the LLP is very flexible which enables it to add more limited partners at any time. 
  • Income received by the partners from LLP is not taxable under the income tax act. Only the personal income of the partners is chargeable to tax. 

     

Documents Required for Registering an LLP

For the registration of an LLP, both the LLP and the partners need to submit some important documents which are as follows: 


Documents of Partners: 

  • PAN card or any other identity proof of all partners: PAN card acts as a primary identity proof of any person. Hence all partners need to submit their PAN cards at the time of registration of LLP. In case, any partner does not have a PAN card he or she can submit any other ID proof.
  • Address proof of all partners: For the address proof the partners can submit any document from among the Voter ID card, Driving license, or Aadhar card. It should be noted that the details mentioned in these documents must be the same as that of PAN. 
  • Residence proof of all partners: For the residence proof of the partners, they can submit documents like a bank statement, mobile bill, telephone bill, electricity bill, etc. Note that the bills to be submitted should not be older than 3 months. 
  • Photographs: A passport size photo of the partners should also be submitted at the time of registration. 
  • Passport: If any partner is a non resident of India then it is necessary to submit his or her passport at the time of registration. The address proof of such non resident shall also be submitted along with the passport. 


Documents of LLP: 

Address proof of the registered office of the LLP: It is necessary to submit the address proof of the LLP at the time of registration. If the registered office is rented or leased, then the rental agreement or lease deed shall be submitted along with the consent of the owner or landlord of the office. The identity proof of the owner or landlord shall also be submitted along with the other documents. Note that the address proof shall not be older than 2 months. 

Digital Signature Certificate: At the time of registration of LLP, it is necessary to submit the digital signature certificate of one of the partners along with the documents. 
 

How to Register an LLP in 5 Simple Steps.? 

The process to register an LLP is as follows: 

Step 1: Obtain Digital Signature Certificate 

The process of registration of an LLP is online, therefore it is necessary to obtain a digital signature certificate. A digital signature certificate of the designated partner of the LLP should be obtained before applying for the registration of LLP. 

Step 2: Apply for DIN 

Once the partners have obtained their digital signature certificate, the next step is to apply for a DIN. The partners can apply for the DIN by filing Form DIR 3 along with the scanned copies of Aadhar or PAN card. 

Step 3: Name reservation 

The next step in the LLP registration process is to reserve the name of the LLP. For this LLP-RUN i.e. Limited Liability Partnership - Reserve Unique Number is filed which is processed by the Central Registration Centre. Although, it is advisable to use the free name search facility provided on the MCA portal before filing the LLP-RUN. 

While using the search facilities, the system provides a list of closely resembling names of existing LLPs. This helps the LLP to choose a unique name that is not similar to any existing LLP or company. It is necessary to choose a unique name because the registrar only approves the names which are unique and are not undesirable in the opinion of the central government. 

A prescribed amount of fees is charged while filing the LLP-RUN form. This form is then approved or rejected by the registrar. In case of a rejection, the LLP can resubmit the form within a period of 15 days after rectification of the defects. 

An LLP can propose two names in the forms for the approval of the registrar. 

Step 4: Incorporation of LLP 

Once all the above steps are done, the main process of incorporation begins which is as follows: 

File the Form for Incorporation of Limited Liability Partnership i.e. FiLLiP, with the registrar, who has the jurisdiction in the state where the registered office of the LLP is situated. 
Pay the incorporation fees as prescribed in Annexure A. 
In case any designated partner of the LLP does not have a DIN or DPIN, then he or she can also apply for the allotment of DIN or DPIN along with FiLLiP. 
The application for allotment of DIN or DPIN is only allowed to be filed by two designated partners. 
Once the proposed name of the LLP is approved by the Central Registration Centre, it shall be filed as the name of the LLP. 

Step 5: File LLP Agreement 

At the last and final step, the Limited Liability Partnership (LLP) Agreement is filed. This agreement governs the mutual rights and duties of the partners of LLP. The LLP agreement is filed online in Form 3 on the MCA portal within 30 days from the date of incorporation of the LLP. The  LLP can print the LLP Agreement on the stamp paper. 

Cost Involved in Registration of LLP 

The cost involved at each step of the LLP registration process is as follows:

Steps 

Cost involved

Step 1 (DSC)

Approximately Rs 1500 to Rs 2000 for 2 partners 

Step 2 (DIN)

Rs 1000 for 2 partners

Step 3 (Name Reservation)

Rs 200

Step 4 (LLP Incorporation)

If the capital contribution is up to Rs 1 lakh theN Rs 500 and if the capital contribution is between Rs 1 lakh and 5 lakh then Rs 2000

Step 5 (LLP Agreement)

If the capital contribution is up to Rs 1 lakh theN Rs 50 for Form 3 and stamp duty. 

 


Author : Simran

Date     : 12-Jul-2022


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