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One Person Company Registration

Register as an LLP in India


LLP (Limited Liability Partnership) is a hybrid structure that combines the advantages of both a traditional partnership firm and a company. It is governed by the Limited Liability Partnership Act, 2008, and offers reduced compliance requirements, along with structured roles and responsibilities, similar to a partnership. LLP also provides the benefits of a company structure, such as the partners' limited liability and a separate and continuous legal existence. Therefore, LLP Registration is a popular business formation option for professional services firms such as Chartered Accountants, Company Secretaries, Management Consulting Businesses, Recruiting Firms, and other service-based companies. If you are looking for LLP Registration, ProTax Solutions is an excellent choice. They have a team of expert CA, CS, and lawyers, a dedicated account manager, and a 24-hour query resolution policy. Additionally, their startup-friendly pricing and quick registration process make them an ideal choice. They provide a 100% online LLP registration process and post-incorporation support, with thousands of happy customers across all states in India. They also offer exclusive partner deals on web hosting, payment gateways, and other services. However, transferring ownership and providing ownership options to employees (ESOP) is more complicated in an LLP. Suppose you are a high-growth startup seeking external funding. In that case, Private Limited Company Registration may be a better option for you.

Why Should You Register Your Business as a Limited Liability Partnership?


Partners' Liabilities are Limited

Registering as a Limited Liability Partnership (LLP) provides a significant advantage over a Partnership Firm as it creates a separate legal entity. As a result, the LLP structure offers the partners limited liability protection. If the business experiences a loss or goes bankrupt, the partners' liability is limited to their capital contribution as per the LLP agreement. Additionally, individual partners are not held accountable for the misconduct or negligence of other partners.

Operational Flexibility

LLP Agreement, deed among partners of an LLP, clarifies operating structure including rights and responsibilities of the partners. Typically, LLP has a “Designated Member” who would control day-to-day operations. It can have individuals or existing businesses as members. Further, this structure allows to clearly define the roles and responsibilities of the partners. It could also help in protecting the partner’s interest in case of loss because of an unlawful act of any other partner.

Separate Legal Existence

Registering as a Limited Liability Partnership (LLP) under the LLP Act of 2008 creates a distinct legal identity separate from its partners. This enables the LLP to enter into contracts with other entities, own assets, borrow funds, and take legal action in its own name. The LLP provides flexibility to operate independently and perpetually regardless of the change or death of partners.

Lower Compliance Requirement

An LLP has comparatively lower compliance requirements in contrast to Private Limited Companies. It is not mandatory to conduct an audit until a certain level of turnover or contribution is achieved. LLPs are exempted from complying with board meetings, statutory meetings, and other requirements that companies need to abide by. Besides, the professional services for ensuring compliance are available at more affordable rates than those required by companies, making it a budget-friendly business formation option.

Documents Required for LLP Registration in India


PAN Card

PAN Card of all partners Foreign nationals may provide passport

Partners Address Proof

Aadhar Card/ Voter ID/ Passport/ Driving License of all partners

Photograph

Latest Passport size photograph of all partners

Business Address Proof

Latest Electricity Bill/ Telephone Bill of the registered office address

NOC from owner

No Objection Certificate to be obtained from the owner of registered office

Rent Agreement

Rent Agreement of the registered office should be provided, if any

Note

In case of NRI or Foreign National, documents of the partner must be notarized or apostilled

Start Your LLP – Quick and Easy!

1. Answer Quick Questions
  • Spare less than 10 minutes to fill in our questionnaires
  • Provide basic details & documents required for registration
  • Make payment through secured payment gateways
2. Experts are Here to Help
  • Assigned Relationship Manager
  • Procurement of Digital Signatures (DSC)
  • Application for LLP Name Reservation
  • Certificate of LLP Incorporation
  • Application for Director Identification Number (DIN)
  • Application for PAN and TAN
  • Drafting of LLP agreement and other required documents
3. Wow! LLP Registration was Easy
  • Your business is registered, get-set-grow!
  • All it takes is 15 – 18 working days to register and incorporate your LLP in India*
*Subject to Government processing time

How Long does It Take?

Day 1 - 2
  • Application for Digital Signature Certificate
Day 3 - 5
  • Checking LLP Name availability
  • Application for Name Reservation under “LLP-RUN”
  • Reservation of LLP Name
Day 6 - 10
  • Drafting the LLP incorporation document
  • Filing application for LLP registration
  • Application for DIN allotment of Designated Partners
  • Certificate of LLP Incorporation
Day 11 - 14
  • Application for PAN and TAN of LLP
  • Drafting of LLP Agreement
Day 15 - 18
  • Payment of Stamp Duty
  • Filing of LLP Agreement
  • Government processing time

Questions You May Have on LLP Incorporation in India

Frequently Asked Questions


To register an LLP, it is mandatory to have at least two individuals appointed as Designated Partners, with one of them being a resident of India. Additionally, a business address in India must be provided as the registered office address for the LLP.

There is no minimum capital requirement for starting an LLP in India. The LLP can be established with any amount of capital as required by the business. However, each partner must make a financial contribution to form the LLP. The capital contribution amount is specified in the LLP Agreement, and the stamp duty amount is determined based on the total contribution amount.

To The availability of a name for LLP is a crucial aspect when registering an LLP online. To reserve a unique name, the partners need to fill out an online form called "LLP-RUN" (Reserve Unique Name). They can provide a maximum of two names in order of preference to reserve one. If the names do not meet the criteria of uniqueness, relevance, or other necessary requirements, the registrar may ask the applicants to submit a new application with a different name.

The LLP Act, 2008 does not impose any restrictions on the citizenship or residential status of Partners in LLP. This implies that Foreign Nationals, Foreign Companies & LLPs can also register an LLP in India. The only requirement is to have at least one Designated Partner who is an Indian resident and over the age of 18. This is to ensure that the individual is legally competent to enter into a contract. Additionally, the proposed Designated Partner must have a DIN.

The DPIN (Designated Partner Identification Number) concept is no longer applicable for LLP incorporation. Instead, the MCA assigns a unique number called DIN (Director Identification Number) to individuals who apply for it. This enables them to become Directors in any company or Designated Partners in LLP. The application for DIN allotment is made along with the incorporation application in FiLLiP, with a maximum of 2 DINs allowed. .

A Digital Signature Certificate (DSC) is required for LLP registration and is issued by Certified Authorities in the form of a token. The designated partner must affix their DSC to any online form submitted for the incorporation of a Limited Liability Partnership (LLP) in India.

The register an LLP in India, the partners are required to provide a place of business in India along with the necessary documents. The place of business can be either a residential or commercial property. This address is mainly used for communication purposes by the MCA and other relevant authorities and is also published on their portal.

Once an LLP is incorporated in India, the partners must sign an LLP agreement that outlines all aspects of the business, such as each partner's duties, rights, roles, and responsibilities. The LLP agreement must be filed within 30 days of receiving the certificate of incorporation, and failing to do so will incur a penalty of ₹ 100 per day until the date of filing.

A Limited Liability Partnership registered in India can engage in multiple businesses as long as they are relevant to each other. The activities must be related or in the same field. It is not permissible to carry out unrelated activities, such as interior designing and legal consultancy, under the same LLP. The business activities must be mentioned in the agreement and approved by the RoC.

LLPs must fulfill the requirement of carrying out a lawful business with an intention to make a profit. Consequently, it is not permissible to register an LLP for undertaking "Not-For-Profit" activities.

Once the Certificate of Incorporation for the Limited Liability Partnership (LLP) is issued, the PAN and TAN can be applied for. The physical copy of the PAN will be sent to the Registered Office once it is dispatched by the Income Tax Department.

If an LLP's turnover exceeds ₹ 40 lakhs and/or its capital contribution exceeds ₹ 25 lakhs, it must have its financial statements audited by an eligible statutory auditor.

The stamp duty on the LLP Agreement in India is determined by the capital contribution amount. The rate of stamp duty varies from state to state, depending on the location of the registered office. Our package cost includes an amount of ₹ 500. It is important to note that notarization of the agreement is not a statutory requirement by the MCA for incorporation of an LLP. While banks may require notarization, it is not mandatory.

After completing the online LLP registration, the partners need to open a bank account in the name of the LLP for conducting business transactions. No additional requirements need to be met for this purpose, but the partners must deposit the agreed amount of capital contribution as and when required. Additionally, the LLP must fulfill its annual compliance filing obligations every year.

An LLP in India can have a body corporate as a partner. However, the LLP must appoint at least one designated partner who acts as an authorized representative of the body corporate in the LLP, along with any two partners or nominee.

Foreign Direct Investment (FDI) is permitted in LLP under the automatic route in sectors allowed by the Foreign Investment Promotion Board (FIPB). However, Foreign Institutional Investors (FIIs) and Foreign Venture Capital Investors (FVCIs) are not allowed to invest in LLPs. Additionally, LLPs are not permitted to avail External Commercial Borrowings (ECB).

It is possible to convert an existing partnership firm or an unlisted company into an LLP. There are several benefits to converting a partnership firm into an LLP.

The LLP's daily transactions are recorded in its books of accounts by the designated accountant/s. An independent auditor verifies the accounts recorded to ensure that all statutory compliance requirements are met and provides an audit report. Please note that ProTax Solutions is responsible only for the accounting services provided by them, but they can assist in appointing an independent auditor for the business if required.

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