A Limited Liability Partnership (LLP) is a form of business that offers the combined features of ‘partnership’ and ‘company’ business structures. This business form was introduced in India in April 2009 with the enactment of the Limited Liability Partnership Act, 2008.
A Limited Liability Partnership (LLP) Registration combines the advantages of both ‘Company’ and ‘Partnership’ in a single business entity. In an LLP, a partner is not responsible or liable for another partner's misconduct or negligence. Instead, all partners have limited liability, limited to their own acts of commission or omission, similar to shareholders’ liabilities in a limited company.
However, unlike company shareholders, LLP partners have the right to manage the business directly. An LLP also limits the personal liability of a partner for errors, omissions, incompetence, or negligence of the LLP's employees or other agents. The management of day-to-day business is outlined in the LLP Agreement, providing partners with the freedom to regulate the affairs of the business.
LLP registration is administered by the Ministry of Corporate Affairs (MCA) through the Office of the Registrar of Companies. The incorporation process is fully electronic, similar to the company registration process, i.e. applications and documents are filed electronically and the Registrar issues a digitally-signed Certificate of Incorporation (COI).
Requirements for Limited Liability Partnership Registration
a) Partners
To register a Limited Liability Partnership (LLP) Registration in Delhi, there should be a minimum of two partners. An individual or a body corporate can become a partner of an LLP. An individual partner, who is an Indian National, should have a Permanent Account Number (PAN) allotted by the Income Tax Department.
b) Designated Partners
An LLP should have a minimum two ‘Designated Partners’ who are individuals. At least one of them should be resident in India. ie, stayed in India not less than 182 in the previous calendar year. Proposed Directors must have a Director Identification Number (DIN) issued by the Ministry of Corporate Affairs. Only individuals can be designated as partners in an LLP. Where a body corporate is one of the LLP partners, it shall nominate an individual as its nominee Designated Partner.
c) LLP Name
The name of a Limited Liability Partnership (LLP) shall end with words “Limited Liability Partnership of the acronym ‘LLP’. LLP Name has three parts, ie., ‘The Name’, ‘Activity’ and words “Limited Liability Partnership’ or the acronym ‘LLP’. Proposed LLP name is required to be approved by the Registrar of Companies
d) Registered Office Address
LLP should have a registered office address as its statutory communications. An address proof with No-Objection Letter for use of address as the Registered Office of LLP from the address owner is also required.
e) LLP Objects
Objects of the LLP refer to proposed business activities. LLP can have any legal business activities that are legal. It is advisable to identify the main objects of the LLP in a particular line of business. The name of the LLP must be in line with the main objects. If the name of the LLP is not describing a particular object, then the LLP can have multifaceted objects.
f) Digital Signature Certificate (DSC)
All documents are filed online with Registrar of Companies. Online Filing of documents to be authenticated by using a Digital Signature Certificate of the Director obtained from the Certifying Authority in India.
g) Professional Certification
Services of a Company Secretary, Chartered Account, Cost Accountant is required to make necessary Certifications and declarations for incorporation of a Limited Liability Partnership (LLP).
Documents Required for Limited Liability Partnership (LLP) Registration
1.Designated Partners (Who does not have a DIN)
a. Identity Proof:
i.Indian Nationals – Copy of PAN Card (Self certified)
ii.Non Indian Nationals – Copy of Passport (Self Certified and notarized)
b .Address Proof:
i.Permanent Address Proof: Copy of Passport or Driving License or Aadhaar Card or) or Voter Identity Card or Telephone Bill or Electricity Bill or Bank Statement (Not older than 2 months)
ii.Present Address Proof : Telephone Bill or Electricity Bill or Bank Statement (Not older than 2 months)
c. Passport Size Photos - 3 Nos.
2. Partners (If the Partner is not a Designated partner
a. Identity Proof :
i.Indian Nationals – Copy of PAN Card (Self certified)
ii.Non Indian Nationals – Copy of Passport (Self Certified and notarized)
b. Address Proof:
i.Permanent Address Proof: Copy of Passport or Driving License or Aadhaar Card or) or Voter Identity Card or Telephone Bill or Electricity Bill or Bank Statement (Not older than 2 months)
Notes:
a.All the Copies of documents must be self attested by the applicant
b.In case of non-Indian Nationals, the documents are required to be notarized from the home country.
c.The Telephone Bill / Mobile Bill/Electricity Bill / Bank Account Statement must be in the name of applicant and should not be older than 2 months.
d.In case of documents that are in languages other than English, it should be translated to English with the help of a professional translator, carrying his details (name, signature, address, and seal) If the proposed director has a valid Director Identification Number and if he or she is a proposed shareholder, the address in MCA records and should match with present address proof.
3.Registered Office Address
Copy of Passport or Driving License or Aadhaar Card or Voter Identity Card or Telephone Bill or Electricity Bill or Bank Statement with complete address of proposed registered office of LLP with No-Objection Letter from the address owner for use of address as the Registered Office of LLP is also required.
Limited Liability Partnership Registration Process
LLP Registration Process can be divided into 3 stages and the processes involved are as follows:
Stage-I: Pre-Requisites
Stage-II: Documentation and Registration
Stage-III: LLP Agreement