LLP Company Registration
Rs.20000*
What is a Private Limited Company?
A private limited company is a company privately held for small businesses. This type of business entity limits owner liability to their shareholdings, the number of shareholders to 200, and restricts shareholders from publicly trading shares.
DOCUMENTS REQUIRED FOR FILING SPICE+ (INC-32)
The following documents must be filed with SPICe (INC-32) for a private limited company registration:
A. Where director and subscriber are Indian Nationals
An Affidavit on a Stamp Paper is to be given by all the subscribers of the Company to state their willingness to become the shareholders of the Company
Proof of office address – Rental Agreement or Ownership Deed such as Sale Deed
Copies of utility bills such as electricity bill, water bill or gas bill not older than two months
Copies of utility bills that are not older than two months
Copy of approval in case the proposed name of the company contains any word(s) or expression(s) that require approval from central government
If the proposed name is based on a registered trademark or is subject matter of an application pending for registration under the Trade Marks Act, then it is mandatory to attach the trademark registration certificate or trademark application copy
NOC from the owner of the property, if the registered office is on a rented/leased property.
In case of subscribers/ Director does not have a DIN, it is mandatory to attach, proof of identity and address proof of the subscribers
B.Where director/subscriber is a foreign National
Passport
Address proof: It can be driving license, residence card, bank statement, Government issued form of identification containing an address
OUR PVT LTD REGISTRATION PACKAGES INCLUDES
DIN and DSC for 2 Directors
Drafting of MoA & AoA
Government Stamp duty
Company Incorporation Certificate
Company PAN and TAN
Certificate of commencement of business (INC 20A)
ESIC and PF Registration
Limited Liability Partnership (LLP) has become a preferred form of organization among entrepreneurs in India. An LLP incorporates the benefits of a partnership firm and a company. As the name suggests, an LLP is a partnership firm established by a minimum of two partners who enter into an LLP agreement. However, the partners of an LLP have limited liability and the LLP has perpetual succession just like a company.
The concept of the Limited Liability Partnership (LLP) was introduced in India in 2008. The Limited Liability Partnership Act, 2008 regulates the LLPs in India. Minimum two partners are required to incorporate an LLP. However, there is no upper limit on the maximum number of partners of an LLP.
Among the partners, there should be a minimum of two designated partners who must be natural persons, and at least one of them should be resident in India. The rights and duties of designated partners are governed by the LLP agreement. They are directly responsible for the compliance of all the provisions of the LLP Act, 2008 and provisions specified in the LLP agreement.
Features of LLP
It has a separate legal entity just like companies.
Minimum two persons should come together as partners to establish LLP.
There is no upper limit on the maximum number of partners.
There must be a minimum of two designated partners.
Atleast one designated partner must be a resident of India.
The liability of each partner is limited to the contribution made by the partner.
The cost of forming an LLP is low.
Less compliance and regulations.
No requirement of minimum capital contribution.
Advantages of LLP
Separate legal entity
An LLP has a separate legal entity, just like companies. The LLP is distinct from its partners. An LLP can sue and be sued in its own name. The contracts are signed in the name of the LLP, which helps to gain the trust of various stakeholders and gives the customers and suppliers a sense of confidence in the business.
Limited liability of the partners
The partners of the LLP have limited liability. The liability of the partners is limited to the contributions made by them. This means that they are liable to pay only the amount of contributions made by them and are not personally liable for any loss in the business. If an LLP becomes insolvent at the time of winding up, only the LLP assets are liable for clearing its debts. The partners have no personal liabilities, and thus they are free to operate as credible businessmen.
Low cost and less compliance
The cost of forming an LLP is low compared to the cost of incorporating a public or private limited company. The compliances to be followed by the LLP is also low. The LLP needs to file only two statements annually, i.e. Annual Return and a Statement of Accounts and Solvency.
No requirement of minimum capital contribution
The LLP can be formed without any minimum capital. There is no requirement of having a minimum paid-up capital before going for incorporation. It can be formed with any amount of capital contributed by the partners.
HOMESTART-MANAGE-BUSINESSCOMPANY-REGISTRATIONLIMITED LIABILITY PARTNERSHIP (LLP) REGISTRATION IN INDIA
Limited Liability Partnership (LLP) Registration in India
Updated on: May 3rd, 2023 | 19 min read
Limited Liability Partnership (LLP) has become a preferred form of organization among entrepreneurs in India. An LLP incorporates the benefits of a partnership firm and a company. As the name suggests, an LLP is a partnership firm established by a minimum of two partners who enter into an LLP agreement. However, the partners of an LLP have limited liability and the LLP has perpetual succession just like a company.The concept of the Limited Liability Partnership (LLP) was introduced in India in 2008. The Limited Liability Partnership Act, 2008 regulates the LLPs in India. Minimum two partners are required to incorporate an LLP. However, there is no upper limit on the maximum number of partners of an LLP. Among the partners, there should be a minimum of two designated partners who must be natural persons, and at least one of them should be resident in India. The rights and duties of designated partners are governed by the LLP agreement. They are directly responsible for the compliance of all the provisions of the LLP Act, 2008 and provisions specified in the LLP agreement. Features of LLPIt has a separate legal entity just like companies.Minimum two persons should come together as partners to establish LLP. There is no upper limit on the maximum number of partners.There must be a minimum of two designated partners.Atleast one designated partner must be a resident of India.The liability of each partner is limited to the contribution made by the partner.The cost of forming an LLP is low.Less compliance and regulations.No requirement of minimum capital contribution.Advantages of LLPSeparate legal entityAn LLP has a separate legal entity, just like companies. The LLP is distinct from its partners. An LLP can sue and be sued in its own name. The contracts are signed in the name of the LLP, which helps to gain the trust of various stakeholders and gives the customers and suppliers a sense of confidence in the business.Limited liability of the partnersThe partners of the LLP have limited liability. The liability of the partners is limited to the contributions made by them. This means that they are liable to pay only the amount of contributions made by them and are not personally liable for any loss in the business. If an LLP becomes insolvent at the time of winding up, only the LLP assets are liable for clearing its debts. The partners have no personal liabilities, and thus they are free to operate as credible businessmen.Low cost and less compliance The cost of forming an LLP is low compared to the cost of incorporating a public or private limited company. The compliances to be followed by the LLP is also low. The LLP needs to file only two statements annually, i.e. Annual Return and a Statement of Accounts and Solvency.No requirement of minimum capital contributionThe LLP can be formed without any minimum capital. There is no requirement of having a minimum paid-up capital before going for incorporation. It can be formed with any amount of capital contributed by the partners.Disadvantages Of LLPPenalty on non-complianceThe compliance that is to be followed by LLP is minimal. But, if these compliances are not completed on time, then the LLP will have to pay a heavy penalty. Even if the LLP does not have any activity in the year, it is required to file returns with the Ministry of Corporate Affairs (MCA) annually. If it fails to file the returns, then a heavy penalty will be imposed on the LLP.Winding up and dissolution of LLPA minimum of two partners is required to form an LLP. If the minimum number of partners is below two for six months, then the LLP will be dissolved. It may be dissolved if the LLP is unable to pay its debts.
Difficulty to raise capital
The LLP does not have the concept of equity or shareholders like a company. Angel investors and venture capitalists cannot invest in the LLP as shareholders. This is because the shareholders must be partners in the LLP and have to take up all the responsibilities of a partner. Thus, angel investors and venture capitalists prefer to invest in a company rather than an LLP making it difficult for the LLPs to raise capital.
LLP Registration Process
Step 1: Obtain Digital Signature Certificate (DSC)
Before initiating the process of registration, you must apply for the digital signature of the designated partners of the proposed LLP. This is because all the documents for LLP are filed online and are required to be digitally signed. So, the designated partner must obtain their digital signature certificates from government recognized certifying agencies.Here is a list of such certified agencies. The cost of obtaining DSC varies depending upon the certifying agency. Also, you should obtain class 3 category of DSC or you can click here & let a ClearTax expert procure DIN for you. If you go for Limited Liability Partnership company registration with ClearTax, up to 2 DINs are covered in the plan & there is no need to apply for DIN separately.
Step 2: Apply for Director Identification Number (DIN)
You have to apply for the DIN of all the designated partners or those intending to be designated partner of the proposed LLP. The application for allotment of DIN has to be made in Form DIR-3.You have to attach the scanned copy of documents (usually Aadhaar and PAN) to the form. The form shall be signed by a Company Secretary in full- time employment of the company or by the Managing Director/Director/CEO/CFO of the existing company in which the applicant shall be appointed as a director.
Step 3: Name Approval
LLP-RUN (Limited Liability Partnership-Reserve Unique Name) is filed for the reservation of the name of the proposed LLP which shall be processed by the Central Registration Centre under Non-STP. But before quoting the name in the form, it is recommended that you use the free name search facility on MCA portal. The system will provide the list of closely resembling names of existing companies/LLPs based on the search criteria filled up. This will help you in choosing names not similar to already existing names. The registrar will approve the name only if the name is not undesirable in the opinion of the Central Government and does not resemble any existing partnership firm or an LLP or a body corporate or a trademark.The Form 1 has to be accompanied by fees as per Annexure ‘A’ which may be either approved/rejected by the registrar. A re-submission of the form shall be allowed to be made within 15 days for rectifying the defects. There is a provision to provide for 2 proposed names of the LLP.
Step 4: Incorporation of LLP
The form used for incorporation is FiLLiP (Form for incorporation of Limited Liability Partnership) which shall be filed with the Registrar who has jurisdiction over the state in which the registered office of the LLP is situated. The form will be an integrated form.
Fees as per Annexure ‘A’ shall be paid.
This form also provides for applying for allotment of DPIN, if an individual who is to be appointed as a designated partner does not have a DPIN or DIN.
The application for allotment shall be allowed to be made by two individuals only.
The application for reservation may be made through FiLLiP too.
If the name that is applied for is approved, then this approved and reserved name shall be filled as the proposed name of the LLP
Step 5: File Limited Liability Partnership (LLP) Agreement
LLP agreement governs the mutual rights and duties amongst the partners and also between the LLP and its partners.
LLP agreement must be filed in Form 3 online on MCA Portal.
Form 3 for the LLP agreement has to be filed within 30 days of the date of incorporation.
The LLP Agreement has to be printed on Stamp Paper. The value of Stamp Paper is different for every state.
LLP Forms
Form name Purpose of the form
FiLLiP Form for incorporation of LLP
Form 1 Form for reserving a name for the LLP
Form 2A Details of designated partners and other partners of LLP
Form 3 Information about LLP agreement
Form 8 Statement of Account and Solvency
Form 11 Annual Return of Limited Liability Partnership (LLP)
Form 17 Application and statement for the conversion of a firm into LLP
Form 18 Application and statement for conversion of a private company/unlisted public company into LLP
Form 24 Application to the Registrar of Companies for striking off name of LLP
Checklist for LLP Registration
Minimum of two partners.
DSC for all designated partners.
DPIN for all designated partners.
Name of the LLP, which is not similar to any existing LLP or trademark.
Capital contribution by the partners of the LLP.
LLP Agreement between the partners.
Proof of registered office of the LLP.