LLP Formation

LLP stands for a limited liability partnership.

LLP is a body corporate formed and incorporated under the LLP Act, 2008. In this business structure, partners get the benefits of limited liability and flexibility of a partnership. It is a legal entity separate from its partners. LLP Formation has been quite popular among entrepreneurs as it is a hybrid between a company and a partnership, and an LLP Registration provides the best of both worlds.

Limited Liability Partnership Key Features

• Irrespective of changes in partners, the LLP continues to exist
• It can purchase, sell, possess, own, enjoy, and transfer properties and can enter into contracts in its name
• The entity must have at least two partners, and at least one of these partners must be a resident of India
• The firm must have at least two individuals as designated partners
• There is no limit on the maximum number of partners in the entity
• All the partners can manage the business of an LLP; however, only designated partners are solely responsible for all compliances and penalties
• The entity is liable to the full extent of its assets, but each partner is liable to the extent of his/her agreed contribution in the LLP
• An agreement between the partners or between the partners and the LLP govern the determination of mutual rights and duties of all the partners within an LLP
• The partners are not mutually liable for any other partner’s wrongful business misconduct or decisions

What are the minimum requirements to be satisfied to become eligible for LLP registration?

• At least two partners must be there to register an LLP. There is no limit on the maximum number of partners in an LLP.
• At least one designated partner of LLP must be a resident of India. An individual is considered a resident in India if he or she stays in India for at least 182 days during the preceding financial year irrespective of their citizenship.
• The name of the entity must be unique. It must not match with the existing name of any trademark, company or LLP.
• Any amount of capital is okay for incorporation as an LLP. The minimum capital cannot be less than INR 10,000.0, while there is no restriction on the maximum capital amount that can be invested in the LLP.

What are the documents required for LLP Formation in India?

Following are the documents required to register LLP firm in India:

• 1. PAN of all partners
• 2. Address proof of all partners
• 3. Identity proof of all partners
• 4. Latest passport size photographs of all partners
• 5. Stamp paper for LLP agreement of the state where LLP is to be incorporated
• 6. Proof of registered office
• 7. Address proof of the registered office of the LLP, especially a utility bill
• 8. NOC or rent agreement from the owner of the premise; even if a partner is an owner, NOC is required from him/her
• 9. All documents must be self-attested

LLP Registration Process

LLP formation procedure is as follows:

• Application for obtaining Digital Signature Certificate
• Application for obtaining Director Identification Number (DIN) for the partners
• Approval for the name of the LLP
• ROC Filing for incorporation as LLP
• Issuance of LLP Registration Certificate
• Filing of LLP Agreement with the Registrar of Companies (ROC)
• Application for PAN and TAN of LLP
• Opening of bank account