Process of LLP Registration in India: 5 Simple Steps

Limited Liable Partnership (LLP) registration is a business structure today’s entrepreneurs prefer! LLP is defined under the Limited Liability Partnership Act of 2008, under section 2(1)(n).

Since LLP offers more flexible compliance to business owners or partners, it is the first choice of new startups & businesses in India. The concept of LLP is too recent & started in 2008 in India under the Companies Act 2013.

Understand the simple process of LLP registration in India with this article. You’ll learn benefits & compliances required for LLP firms in India.

What is LLP Registration in India?

The Limited Liable Partnership (LLP) is a type of business structure that consists of characteristics of a Private Limited & Partnership Firm. It is a new business form that offers the benefits of the limited liability of a company & flexibility of a partnership firm.

LLP is a Legal Entity that can enter into any contract & can hold property in its name. Every partner in an LLP firm is shielded from other partners’ misconduct or wrongful decisions. LLP continues to exist irrespective of changes in partners.

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What is the Process of LLP Registration in India?

We've explained simple process of LLP Registration.

Step 1 – Obtain a Digital Signature Certificate (DSC)

The designated partners of the proposed LLP should obtain DSC for all document filing purposes. As document filing is done online every time, DSC is compulsory for all partners.

Actax India makes the process easier by taking care of getting DSC for designated partners from certified agencies. The price for DSC varies on the service providers. You should obtain Class 3 DSC.

We offer DSC at a cost of ₹1,500/- only per DSC…

Step 2 – Get Director’s Identification Number (DIN)

You should apply for DIN for all the designated partners of the proposed LLP. You’ve to apply for DIN using the DIR-3 Form. You’ve to attach a few documents (ID Proof/PAN Card/Address Proof) & you can use the same DIN to get appointed as Director for other companies.

Step 3 – Get Your Company Name Approved for LLP Firm

Reserve Unique Name for Limited Liability Partnership (RUN-LLP), under this you have to reserve unique names for your LLP business. The name approval process is carried out by the Central Registration Center (CRC). It is recommended to check for the name availability for your new firm by using the Check Company Name tool provided by MCA.

You can provide 6 names for your LLP registration in the Name Approval Process. CRC checks for availability based on other factors & allows you the name suggested. If it is rejected, you’ll be given 14 days to rectify & re-apply for Name Approval.

Government Fee for Name Registration of LLP

If the contribution is Less than INR 1,00,000 – ₹ 500/-
If the contribution is between INR 1,00,000 to 5,00,000 – ₹2000
If the contribution is between INR 5,00,000 to 10,00,000 – ₹4000
If the contribution is more than ₹10,00,000, then the fee is ₹5000.

Step 4 – LLP Incorporation

Using FiLLiP (Form for Incorporation of Limited Liability Partnership) you can apply for incorporation of LLP. This form (Form 2) is filed by the registrar whose jurisdiction is the place of incorporation. The name approved in the Name Approval stage is used for the same. The FiLLiP is an integrated form & the fee to file the form is as per ‘Annexure A’.

Know more about Company formation & Registration. Check the cost of LLP registration in India here!

Step 5 – File LLP Agreement

Within 30 days from the Date of Incorporation, you are required to file the partnership agreement on MCA Portal using Form – 3 online. The Partnership agreement governs all mutual rights & duties of designated partners & between LLP & partners. The stamp duties to file form-3 differ for different states.

Actax India can help you in drafting & filing LLP agreements in less time.

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What are the Benefits of Registering LLP in India?

Registering a firm as an LLP consists of loads of advantages. Here are a few that help you to decide about the requirements of LLP for your business operations.

1. No harm to Personal Properties:

Any business loss or damage shall not harm your possessions. The liability is only limited to each partner according to his/her shares.

2. Runs on an Agreement:

The entire LLP is ruled as per the terms & conditions agreed in the partnership agreement.

3. Flexible:

The distribution of profits among the partners in an LLP firm is decided upon by the partnership agreement.

4. No Minimum Investment Required:

There is no mandatory or compulsory rule by the Corporate Ministry on contribution or investment. You can start with as much as a low investment.

5. LLP Runs on 2 Compliances Per Year

If you set up LLP in India, it requires only 2 annual compliances to be filed.

Filing Annual Return by May 30 of every year.
Filing Solvency statement by October 30 of every year.

Consult Experts Before Starting LLP Registration in India.

These major & simple processes of incorporating LLP in India, give you the basic knowledge & understanding. Many experts in the market help you in incorporating LLP but our concern is to provide a strong refinement of the process & make it streamlined for future benefits. Consult experts & understand clearly the Pros and cons of LLP formation in India.

Our Actax Experts help you with proper consultation & guidance based on your business model, we suggest the right business structure to choose & then help you register your business in India.