Limited Liability Partnerships (LLP) have become a famous business structure among entrepreneurs in India. An LLP offers limited liability protection to its partners, and at the same time, it has the flexibility of a partnership firm. In India, the process of LLP registration has been made easy by the government, and it can be done online. We will go through the step-by-step process of LLP registration online in India.
What is LLP Registration?
LLP registration is legally incorporating a limited liability partnership in India. It involves obtaining a unique LLP identification number (LLPIN) and registering the partnership with the Ministry of Corporate Affairs (MCA).
Understanding LLP Registration Online in India
Before starting the registration process, it is essential to understand what LLP registration online is and why it is required. LLP registration is a legal process of forming a limited liability partnership in India. It is mandatory for any business that wants to operate as an LLP in India. The LLP registration process in India can be done online through the Ministry of Corporate Affairs (MCA) website.
Documents for LLP Registration Online in India
To complete the LLP registration India, the following documents are required:
- PAN Card of all Partners
- Aadhar Card of all Partners
- Passport-size photograph of all Partners
- Address proof of Partners
- Address proof of the registered office
- Digital Signature Certificate (DSC) of Partners
- LLP Agreement
Steps involved in LLP Registration Online:
Step – 1 Obtaining (DSC)
The next step is to obtain a Digital Signature Certificate (DSC) for all partners. A DSC is a digital certificate used to sign electronic documents and transactions. It can be obtained from any of the government-approved agencies.
Step -2 Create a Login Account on MCA Portal
Once you have obtained the DSC, the next step is to create a login account on the MCA portal. You can accomplish this by visiting the MCA website and selecting the “New User Registration” option.
Step -3 Check Availability of Name
Before registering an LLP, you need to check the availability of the Name you have chosen. You can do this using the MCA portal’s ‘Name Availability’ option. Your Name must not be similar to an existing LLP or a trademark.
Step -4 Fill out the LLP Registration Form
Once you have checked the availability of the Name, the next step is to fill out the LLP registration form. The form requires you to provide details such as the Name of the LLP, the registered office address, the details of the partners, and the LLP agreement.
Step -5 Upload the Documents
After filling out the form, the next step is to upload the required documents, including the DSC, PAN card, Aadhar card, address proof, passport-size photograph, and an LLP agreement.
Step -6 Pay the Fees
The last step is to pay the registration fees online. The fees vary depending on the contribution made by the partners. Once the fees are paid, the LLP registration process is complete.
LLP Registration Process
Registering for Digital Signature Certificate (DSC)
Before starting the LLP registration process, partners must obtain a digital signature certificate. A DSC is an electronic signature that is used to sign documents digitally. It ensures the document’s authenticity and the identity of the person signing it.
Applying for Director Identification Number (DIN)
The partners of an LLP need to obtain a Director Identification Number (DIN). A DIN is a unique serial number given to company directors by the Ministry of Corporate Affairs (MCA). Every LLP partner must have a DIN.
Choosing a Name for the LLP
The next step is to choose a name for the LLP. The Name should be unique and not similar to any other LLP or company. The Name should also not violate any trademark laws.
Ensure that All Documents are in Order
Ensuring that all documents required for LLP registration are in order is essential. This includes the Memorandum of Association, LLP agreement, and other documents the MCA requires.
Filing of LLP Registration Application
The LLP registration application must be submitted to the Registrar of Companies (RoC) in the state where the LLP will be established once the partners have secured the DSC and DIN.
The application should contain the following information:
- Name of the LLP
- Registered office address
- Business activities
- Details of partners
- Details of designated partners
- LLP agreement
Payment of LLP Registration Fees
After the application is filed, the partners must pay the LLP registration fees. The fees depend on the amount of capital invested in the LLP.
Approval of LLP Registration Application
The Registrar of Companies (RoC) will review the application, and if everything is in order, they will approve the LLP registration application. Once the LLP is registered, the partners will receive a Certificate of Incorporation.
Benefits of LLP Registration:
Limited Liability Protection: LLP provides its partners with little liability protection, which means that the partners’ assets are not at risk if the partnership faces legal or financial issues.
Separate Legal Entity: LLP is considered a separate legal entity, meaning it has a distinct legal identity from its partners. This helps maintain transparency and accountability.
No Minimum Capital Requirement: LLP has no minimum capital requirement, meaning the partners can start the business with any amount of capital they wish to invest.
Tax Benefits: LLPs enjoy tax benefits, such as the exemption from Dividend Distribution Tax and lower tax rates than companies.
Easy to Manage: LLP is easy to manage as it has no mandatory annual filings and is not required to maintain extensive records.
In Conclusion, LLP registration online in India is a simple and easy process that provides several benefits to the partners, such as limited liability protection, tax benefits, and easy management. Following the above steps, anyone can quickly register an LLP in India and start their business journey.
