What is LLP Registration?
Limited Liability Partnership (LLP) is a partnership firm whereby the liability of all the partners is limited. It must have at least two partners for its registration. LLPs are governed under Limited Liability Partnership Act, 2008. According to LLP Act, 2008, every LLP has to register itself as LLP in order to get the status of legal person. So the first step to form an LLP is to get Registration from Ministry of Corporate Affairs (MCA). Thus, LLP Registration Process is a key concept to understand before getting LLP Registration.
What is the Eligibility for LLP Registration?
Essential requirements to get LLP Registration –
- There must be at least two designated partners.
- One of the designated partners must be a Resident of India.
- It must have a unique name which is not similar to the name of any other firm or business.
- There is no Capital limit for LLP partners thus they can invest according to the needs of business.
What are the documents required for LLP Registration?
Documents required for LLP Registration –
A. For partners
- Latest Passport size Photograph
- Copy of PAN Card or Passport
- Copy of Identity proof
- Digital Signature Certificate
- Address proof
B. For Firm(Click here to draft your LLP Agreement)
Which Forms are required to be filed with ROC for LLP Registration?
Forms to be filed before ROC for LLP Registration –
|RUN-LLP||Reservation of name of the LLP|
What is the Process of LLP Registration?
1. Digital Signature Certificate
The first step for LLP Registration is to obtain a Digital Signature Certificate by the designated partners of the Firm.
2. Name of LLP
Then the Designated Partners must choose a unique name for the proposed LLP and then to get it registered by filing Form RUN-LLP with ROC. Thereafter, LLP shall be known with such name only and it shall become a separate legal entity after the incorporation.
ROC may approve such name only if the Central Government does not find it undesirable and copied.
3. LLP Firm Incorporation Compliances
Thereafter, the LLP shall file an incorporation form with the ROC. This Form is called as FiLLiP which stands for Form of Incorporation of Limited Liability Partnership. It is an integrated form, thus it includes an application for
- Designated Identification Partners Number (DIPN)
4. Opening of Bank Account in the name of LLP
LLP shall also open a Bank account in the name of LLP and then all the banking transactions of LLP shall be conducted through such account only.
5. Start the Business operations
Now, LLP can start its business operation as it has successfully incorporated under LLP Act, 2008.
What are the benefits of LLP Registration?
1. Limited Liability –
Unlike Partnership firm, the liability of the partners of LLP is limited to the extent of contribution made by them to the LLP.
2. Separate Legal Entity –
When the LLP is registered, it becomes a separate legal entity. Thus, LLP is different from its partners so that both of them can sue and be sued.
3. Perpetual Existence –
LLP has a feature of perpetual existence so the firm continues to exist even after the death of all the partners.
4. Less Compliances –
Next benefit of LLP is that it has less regulatory LLP Compliances as compared to Private Limited Company.
5. Easy Conversion –
LLP Act, 2008 empowers the LLPs to convert into private limited or public limited company easily and similarly any partnership firm can also convert into LLP Firm.
6. No Audit –
LLP is a type of Partnership in which partners have limited liability and this is why it more preferred among entrepreneurs. Registration of LLP is a must condition to initiate the LLP business operations. LLP Registration requires several compliances and thus LLPs require professionals’ help for such compliances. If you are also looking for help for LLP Registration then Manthan Experts is the right choice. Get assistance with LLP Registration from our experts’ team.