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BusinessLegal

LLP Registration – Online Process and Documents Required

Limited Liability Partnership is a combination of company and partnership firm, it has features of both the entity. This concept was introduced in 2009 by the central government to promote the business as a partnership firm. It requires 2 persons as a designated partner to start the procedure of LLP Registration, the partner can be Indian as well as a foreign citizen but there is no minimum capital requirement which means it can be started with Rs. 10000/- as well.

As a limited liability company, it is also an independent legal entity that can own property on its behalf; whether it is movable or immovable property as a trademark, limited liabilities of partners. The partner is not personally responsible for the activities of other partners, nor is LLP. LLP responsible for the activities of Partners who approach their personal capacity means that the death of the partners does not affect the life of the LLP.

After LLP registration the LLP has to do annual compliances every year like preparation of balance sheet, profit & loss A/c, audit report, ROC filing, Designate partner KYC, ITR filing etc. to avoid penalties. The LLP has to pay income tax @ 30% on the profit earned during the year. There is no need to do a tax audit until its turnover exceeds Rs. 40 Lakhs and capital contribution Rs. 25 Lakhs.

Documents Required For LLP Registration:

  1. Partner/Designated partner:
  2. PAN
  3. Id proof (voter id/ passport/ driving license); anyone
  4. Address proof (bank statement/ electricity bill/ mobile bill/ telephone bill); anyone but should not be older than 2 months
  5. Registered office address:
  6. Sale deed or house tax receipt if owned
  7. Rent agreement if rented
  8. Utility bill (electricity bill/ mobile bill/ gas bill/ telephone bill); anyone but should not be older than 2 months
  9. NOC from the owner of the property

Procedure to Register LLP in India:

  1. Name reservation: Name is the main important part of the business and it should be unique and approved by the government. The name should be unique and not similar to the existing company or LLP.
  2. Digital Signature: All the designated partner must have DIN & DSC before registration. If any designated partner doesn’t have DIN then he/she can directly apply for the DIN in the application for LLP registration means now there is no need to apply DIN separately.
  3. Preparation & signing of documents: After the name is approved there are certain documents that shall be drafted and the same shall be signed by the partners of the LLP.
  4. Submission of final form: After completion of all the above steps a final form shall be submitted for incorporation. A final form should be submitted within 3 months from the date of name approval along with fees and documents to the MCA (Ministry of Corporate Affairs).
  5. Certificate of Incorporation: If all the documents are correct and accepted by ROC then they record the name of the LLP in their database.
  6. PAN allotment: After getting the certificate of incorporation we apply for PAN allotment to the NSDL department.
  7. LLP initial agreement: Within 30 days of incorporation the LLP has to submit their initial agreement to the registrar after notarized on requisite stamp paper.

Also Read:- Difference between LLP & Partnership Firm

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