Limited Liability Company Registration Starts From ₹999 Rs.599 40%

What is an LLP (Limited Liability Partnership) ?

A Limited Liability Partnership (LLP) is a legal business structure that combines the features of a partnership and a corporation. It offers the benefits of limited liability to its partners, which means their personal assets are protected in case the LLP faces financial difficulties. LLPs are commonly chosen by professionals such as lawyers, accountants, and consultants who want to work together while enjoying the benefits of limited liability.

LLP Registration Agreement and Its Importance

• The LLP registration agreement is a crucial document that governs the rights, duties, and obligations of partners in an LLP. It outlines various aspects of the partnership, including profit-sharing ratios, capital contributions, decision-making processes, admission and retirement of partners, and dispute resolution mechanisms.
• The LLP registration agreement serves as the foundation for the LLP's operations and helps establish a clear understanding between partners. It provides transparency and clarity in the management and functioning of the LLP, minimizing the potential for conflicts and disputes.
• It's essential to draft the LLP agreement carefully, ensuring that it complies with the provisions of the LLP Act and meets the specific requirements and objectives of the partners. Consulting with a legal professional experienced in LLP matters can help ensure that the agreement covers all necessary aspects and provides a solid framework for the LLP's operations.

LLP Registration Process

The LLP registration process involves several steps that must be followed to establish a legally recognized LLP. Here is a step-by-step guide to help you navigate the process:

1. Choose a Name: The first step in Limited Liability Partnership registration is to choose a unique name for the LLP and reserve it with the Registrar of Companies (RoC). The name should comply with the guidelines provided by the RoC and should not be similar to any existing LLP or company name. The name can be reserved through an online application or by submitting a physical form to the RoC.
2. Obtain Digital Signature Certificates (DSC): Partners of the LLP must obtain digital signature certificates, which are used for online filing and signing of documents. DSCs can be obtained from certified authorities.
3. Obtain Designated Partner Identification Number (DPIN), Director Identification Number (DIN): LLPs must have at least two designated partners, who will be responsible for compliance with legal and regulatory requirements. The designated partners must obtain a Designated Partner Identification Number (DPIN) or a Director Identification Number (DIN) from the Ministry of Corporate Affairs. This can be done by submitting an online application along with the necessary documents.
4. Prepare LLP Agreement: LLP registration requires the preparation and execution of an LLP agreement. This agreement specifies the rights, duties, and obligations of partners, as well as the profit-sharing ratio and other terms and conditions of the partnership. The agreement must be printed on non-judicial stamp paper and signed by all the partners. It should also be notarized and filed with the RoC within 30 days of LLP registration.
5. File Incorporation Documents: Prepare the necessary incorporation documents, including Form 2 (Incorporation Document and Subscriber's Statement) and Form 3 (Details of LLP Agreement). These forms, along with the LLP agreement, must be filed with the Registrar of Companies (ROC).
6. Pay Registration Fees: LLP registration involves the payment of registration fees, which vary based on the capital contribution of the LLP. The fees can be paid online or through a demand draft drawn in favor of the Registrar of Companies. The payment receipt must be attached to the incorporation documents at the time of submission.
7. Obtain Certificate of Incorporation: Once the ROC verifies and approves the incorporation documents, they will issue a Certificate of Incorporation. This certificate serves as proof of the LLP's legal existence.
8. Apply for PAN and TAN: After obtaining the Certificate of Incorporation, apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the LLP. These are required for tax-related purposes.

Documents Required for LLP Registration

To successfully register an LLP, you need to gather and submit several essential documents. Here is a checklist of the documents typically required:

1. Identity and Address Proof of Partners: Partners must provide their PAN card, passport, voter ID, or driver's license as identity proof. They also need to submit address proof documents such as Aadhaar card, passport, utility bills, or bank statements.
2. Proof of Registered Office Address: A document proving the ownership, lease, or rental agreement of the registered office address must be submitted. This can include a sale deed, lease agreement, or utility bill in the name of the owner or tenant.
3. LLP Agreement: The  agreement, as mentioned earlier, is a crucial document that outlines the rights and responsibilities of partners and other important provisions.
4. Digital Signature Certificates (DSC): LLP registration requires the use of digital signatures for signing the incorporation documents. Each designated partner must obtain a Class 2 Digital Signature Certificate (DSC) from a certified agency.
5. Form 2: This form includes details of partners, registered office address, and consent of partners. It must be signed by all partners.
6. Form 3: This form contains the LLP agreement and must be signed by all partners.
7. Payment Receipts: Proof of payment of LLP registration fees must be provided
8. PAN and TAN: Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN)

LLP Registration Fees

The registration fees for LLPs vary depending on the capital contribution and the state in which the LLP is registered. Here is a general overview of the fees involved:

• For Limited Liability Partnership with a capital contribution of up to Rs. 1 lakh: Rs. 500
• For Limited Liability Partnership  with a capital contribution of Rs. 1 lakh to Rs. 5 lakhs: Rs. 2,000
• For Limited Liability Partnership with a capital contribution of Rs. 5 lakhs to Rs. 10 lakhs: Rs. 4,000
• For Limited Liability Partnership with a capital contribution of Rs. 10 lakhs to Rs. 50 lakhs: Rs. 5,000
• For Limited Liability Partnership with a capital contribution of Rs. 50 lakhs to Rs. 5 crores: Rs. 10,000
• For Limited Liability Partnership with a capital contribution of Rs. 5 crores to Rs. 10 crores: Rs. 20,000
• For Limited Liability Partnership with a capital contribution of more than Rs. 10 crores: Rs. 30,000

It's important to note that these fees are subject to change and may vary based on the state in which the LLP is registered. Additionally, professional fees for assistance with LLP registration may also apply.

Conclusion

For successful LLP registration, it's crucial to have all your documents in order. With the help of trusted services like BTHAWK Compliance, you can streamline the process and establish your LLP efficiently. By following the right steps, submitting the required paperwork, and paying the necessary fees, you can confidently set up your business with ease. BTHAWK Compliance provides expert guidance to make registration hassle-free and professional. Trust BTHAWK Compliance for a smooth and seamless LLP registration experience.

Kindly be informed that the information shared above is strictly intended for educational purposes only. It is highly recommended to seek the guidance of a skilled professional for any financial transactions or compliance services to guarantee legal adherence and mitigate any potential challenges.