Comprehensive Guide to LLP Registration in India

Limited Liability Partnership (LLP) Registration in India has gained popularity among entrepreneurs due to its combination of benefits from partnership firms and companies. Governed by the Limited Liability Partnership Act, 2008, LLPs offer limited liability to partners, perpetual succession, and ease of compliance. Here’s a comprehensive guide to LLP registration:

Features of LLP:

1. Separate legal entity like companies.
2. Minimum two partners required.
3. No upper limit on the maximum number of partners.
4. Minimum of two designated partners, with at least one resident in India.
5. Limited liability of each partner.
6. Low cost of formation and less compliance burden.
7. No requirement of minimum capital contribution.

Advantages of LLP:

1. Separate legal entity status enhances credibility.
2. Limited liability protects partners’ personal assets.
3. Low cost and simplified compliance procedures.
4. No minimum capital requirement facilitates easier incorporation.

Disadvantages of LLP:

1. Penalties for non-compliance can be hefty.
2. LLP dissolution may occur if minimum partners’ requirement isn’t met.
3. Difficulty in raising capital due to absence of equity shareholders.

LLP Registration Process:

1. Obtain Digital Signature Certificate (DSC) for designated partners.
2. Apply for Designated Partner Identification Number (DPIN) for partners.
3. Reserve LLP name using RUN-LLP.
4. Incorporate LLP using FiLLiP form with Registrar of Companies.
5. File LLP agreement within 30 days of incorporation.

Documents Required for LLP Registration:

1. PAN Card/ ID Proof of Partners.
2. Residence Proof of Partners.
3. Passport (for Foreign Nationals/ NRIs).
4. Proof of Registered Office Address.
5. Digital Signature Certificate.

LLP Forms:

• FiLLiP: Incorporation of LLP.
• RUN LLP: Reservation of LLP name.
• Form 3: LLP agreement.
• Form 8: Statement of Account and Solvency.
• Form 11: Annual Return of LLP.

Checklist for LLP Registration:

• Minimum two partners with DPIN.
• Unique LLP name not resembling existing entities.
• Capital contribution details.
• LLP Agreement.
• Proof of registered office.

Cost Involved for LLP Registration:

• Registration plan includes drafting of LLP deed, DSC, DPIN, incorporation certificate, government fees, stamp duty, and notarization.

Time Involved for LLP Registration:

• Approximately 10 days from obtaining DSC to filing Form 3, subject to departmental approval.

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