The Ultimate Guide to Registering LLP in India

The concept of LLP (Limited Partnership) LLP (Limited Partnership) was introduced in India rather late. The LLP concept was first introduced in India under the LLP Act 2008. The underlying fundamental principle underlying the introduction is to maintain a business enterprise that provides for the limited liability of the owners.

    

An LLP protects members' personal assets from liabilities. In an LLP, one partner is not responsible for any misconduct or negligence of the other partners. This means that LLP partners are only required to pay back the number of their contributions and are not personally liable for any losses in the business. Designated Partners are directly responsible for complying with all provisions of the Limited Liability Partnership Act and the provisions specified in the LLP Agreement.

    

Information about the LLP agreement must be completed and submitted in form 3 (Information about the agreement of a limited liability company and amendments, if any). The Draft LLP Agreement under Section 23(3) - Section 23(3) of the LLP Law [1] provides that a written agreement made before the incorporation of an LLP between the signatories of the articles of association and they must be on stamped paper. As you can in this article, the format of the LLP agreement is very simple and convenient, you can simplify it as you need to specify the main details of your business and your agreement must be signed by all partners. As you could see in the previous article, the LLP agreement is an important document for an LLP company, because without filing an LLP agreement, your registration certificate can be revoked by the authority, so you should consider the fact that you must file these documents within a period, which is 30 days from the date of registration of your business.

    

It should be noted that Form 2 for registration and signature document must be filed with the ROC after the name has been reserved for the LLP by the registrar. You then need to submit this form to the registrar to reserve a name for a new or existing LLP, along with the fee set. Once your LLP's name has been approved, you can proceed with registering your LLP by completing the appropriate form.

    

If the proposed name is approved by the Central Registrar, the approved name must be listed as the name of the LLP. An LLP-RUN (Limited Partnership Reserve Unique Name) is submitted to reserve an LLP Offer Name to be processed by the Central Registrar under Non-STP. Every limited liability company must have the words "Limited Liability Company" or the abbreviation "LLP" as the last words of its name, and even an LLP can be wound up with the consent of the partners.

    

This type of LLP registration offers limited liability for its partners that is not available in a regular partner company. Registering an LLP is a great advantage as it offers the best terms between business and partnership. An LLP is a hybrid form that combines the benefits of both partnerships and companies. The Limited Liability Company (LLP) has become the preferred form of organization among entrepreneurs as it combines the benefits of both a partner company and the business into a single form of organization.

    

FiLLiP (Limited Liability Company Registration Form) is the next form that must be submitted to register a limited liability company in India. LLPIN (Limited Liability Partnership Identification Number), a 7-digit number assigned to all LLPs registered in India. Partner and LLP documents are required to register an LLP.

    

To create an LLP, you will need at least two partners (one of them must be a resident of India). The corporate structure of an LLP requires a minimum of 2 partners, of which at least one partner must be an Indian citizen who has lived in India for at least 182 days immediately before the year. If a foreigner wants to have an LLP in India, he needs at least one Indian citizen as a partner.

    

PAN Card / Partner ID LLP Partners must provide their PAN when registering with the LLP. Documents required to register an LLP include proof of partner's office and address, DSC, and proof of partner's identity. To register a business as an LLP, training documents must be filed with the appropriate government agency and the required registration fees must be paid.

    

Before starting the registration process, LLP partners must be digitally signed. An individual can also apply for a DPIN using the registration form if they are designated as a designated partner in an LLP and do not have a DIN or DPIN. DIN is another mandatory document for the company's designated partners.

    

An LLP allows its partners to enter or leave the partnership without any tax burden. The LLP structure basically offers the benefits of two forms of business structures: partnerships and limited liability companies. LLP limits the partner's personal liability for errors, omissions, incompetence, or negligence of LLP employees or other agents.

    

If you are considering forming an LLP, you must register your LLP. After all, without an LLP agreement, you cannot be allowed to form an LLP company, because without registering an LLP, you cannot legally register your LLP company. If you are part of an existing partner company, you must complete Form 17, "Application and Declaration", to convert the company into an LLP.