Limited Liability Partnership is a separate legal entity and an alternative form of business that gives the benefits of Limited Liability and flexibility of partnership. LLP is called a hybrid between a Company and Partnership Firm because it contains elements of both.
In layman language, LLP means a partnership formed and registered under the Limited Liability Partnership Act, 2008.
Minimum requirements of LLP Registration
1. Minimum 2 Designated Partners (DP)
2. Atleast 1 of the DP shall be Indian resident
3. If a body corporate is DP then it has to nominate a natural person
4. Designated Partner Identification No. (DPIN/DIN) and Digital Signature Certificate(DSC) of both the DP.
5. Name of the LLP should be unique and not similar to existing LLP or trademark
Benefits of LLP Registration
1. As depicted from its full form, the liability of the partners is limited upto the contribution made by them. No partner is liable for the actions of the other partner.
2. It provides flexibility without imposing detailed legal and procedural requirements. Registration process of LLP is very simple and there is no minimum contribution limit prescribed by the Ministry.
3. LLP enjoys the status of going concern as it doesn’t cease to exist after death or retirement of a partner.
4. Being a separate legal entity LLP can sue and be sued by others. It can acquire, own, hold and transfer property in its own name.
5. No audit required if total turnover of LLP is less than Rs. 40,00,000 (Rupees Forty Lakhs) and total capital contribution is less than Rs. 25,00,000 (Rupees Twenty-Five Lakhs).
6. Less regulatory compliances as compared to Company.
7. There is no restriction on lending money to the partners. LLP can give and take loan from its partners.
8. No Dividend Distribution Tax is payable as the provision of “Deemed Dividend” under the Income Tax Act is not applicable to the LLP.
9. Being a registered entity, a LLP can easily borrow money from banks and financial institutions.
Documents required for Online Limited Liability Partnership Registration
| S. No. | Particulars | Documents Required |
| 1 | DPIN/DIN
(In case of Indian Applicants) |
Self-Attested copy of Pan card |
| Self-Attested copy of Passport or Voter Id Card | ||
| Self-Attested copy of permanent and present address proof i.e., Bank Statement, Electricity Bill, or Telephone Bill not older than 2 months | ||
| Cross Signed Passport size photograph | ||
| Educational Qualification | ||
| Occupation | ||
| Mobile No. | ||
| E-mail ID | ||
| 2 | Digital Signature Certificate (DSC)
(In case of Indian Applicants) |
Mobile No. |
| E-mail ID | ||
| Self-Attested copy of Pan card | ||
| Self-Attested copy of Passport or Voter Id Card or Aadhar Card | ||
| 3 | Registered office address proof | Address proof i.e., Electricity Bill, Property Tax paid receipt, Gas Bill, etc not older than 2 months |
| Ownership documents (If self-owned) | ||
| Rent Agreement (If rented) | ||
| 4 | Consent letters | Consent letters duly signed by all the Partners |
| 5 | Subscriber sheet | Duly signed by all the Partners of LLP |
| 6 | If body corporate is partner | Copy of Board resolution passed to become partner of LLP |
| 7 | If proposed Name of LLP is similar to some trademark application or registered trademark | Approval of the applicant of trademark alongwith a copy of registration certificate, if registered |
| 8 | If proposed Name of LLP is similar to existing Company or LLP | Copy of Board resolution passed by existing Company or consent of existing LLP as proof of no objection |
| 9 | If proposed Name includes words that require approval of regulated authority | In principal approval of regulatory authority |
| 10 | If proposed Name includes any prohibited words under the Emblems and Names (Prevention of Improper Use) Act, 1950 | Copy of approval from Central Government |
| 11 | If proposed partner is already Partner or Director in other LLPs or Companies | Interest in other entities |
Registration Procedure for Online Limited Liability Partnership Firm
1. Decide 2 proposed names and check the name availability.Apply for name reservation in web-based Form RUN-LLP. The proposed names should be unique and shall end with either ‘Limited Liability Partnership’ or ‘LLP’. In case the proposed names are similar to existing Company or LLP then attach copy of Board Resolution by the existing Company or approval of existing LLP as NOC. Specify the activities to be undertaken by the proposed LLP in the form.
2. Name reservation can also be applied in Form FiLLiP. Since the Form FiLLiP allows only 1 name therefore it is advisable to file Form RUN-LLP and get the name approved prior filing the application for incorporation. The reserved name remains valid for 90 days from the date of name approval to file application for incorporation of LLP.
3. Post approval of Name by CRC, file application for incorporation of LLP in Form FiLLiP. In case any of the proposed Partner is not having DPIN, the application for allotment of DPIN shall also be filed in Form FiLLiP at the time of incorporation. Maximum 2 DPIN can be allotted through FiLLiP.
4. Attach relevant documents, affix DSC of designated partner, get it certified by practising professional and file the form with prescribed fee for registration of LLP.
5. Once all the requirements are fulfilled, the Registrar will issue Certificate of Incorporation. The DPIN will also be allotted simultaneously if applied.
6. After incorporation of LLP, an initial LLP agreement is to be filed within 30 days of incorporation of LLP. The applicant has to file the information in Form 3 (Information with regard to Limited Liability Partnership Agreement and changes, if any, made therein).