What is LLP?
LLP company means Limited Liability Partnership, it is a combination or hybrid version of company and partnership firm. It is regulated by a proper authority named the Ministry of Corporate Affairs (MCA) through the Registrar of Companies (ROC). Minimum 2 people are required as a partner to LLP Registration in India, but there is no maximum limit for the appointment of a partner in LLP during its life. The LLP can register with any amount of capital contribution it can be started with Rs. 500/- capital as well. The LLP is very popular in India among startups because in partnership firms. They get the benefit and features of a private limited company.
The LLP has many features like separate legal entity, limited liabilities, perpetual succession, etc. the LLP possesses its own identity under which it can buy, sell, pledge, etc. properties in its name, the properties include land, building, plant & machinery, furniture, brand name registration, patent, etc. The main benefit of the LLP company is that it becomes easy to get financial support in comparison to firms and proprietorship because the government has its all records and information that is why investors show their trust in these companies. But once it is registered it becomes mandatory to do the LLP annual compliance every year within the prescribed time limit to avoid penalties and other consequences.
Documents Required for LLP Company Registration:
- PAN card
- Aadhaar Card
- Identity Proof (Voter Id/Passport/ Driving License); anyone
- Address Proof (Bank Statement/ Electricity bill/ Mobile bill/ Telephone bill); anyone but should not be older than 2 months
Registered Office Proof:
- Sale deed or rent agreement or house tax receipt; anyone
- Utility bill (Electricity bill/ mobile bill/ gas bill/ telephone bill); anyone but should not be older than 2 months
- NOC from the owner of the property.
Procedure to Register LLP In India:
- Name Reservation: Just like the company registration procedure, the LLP registration starts with the name reservation. In one application we can apply two names and one re-submission is allowed in one application. The registrar will reserve such names which will be available. Once it is approved it will be valid for 3 months only.
- Digital Signature Certificate: The designated partners must have DSC before filing the registration form because the forms will not be acceptable by the registrar until it is signed by the DSC.
- Preparation of Documents: After name approval, the documents will be prepared and the same shall be signed by the designated partners, partners and professionals.
- Final Submission: Once all the documents shall be prepared and the DSC procedure is completed a final form shall be filled and submitted to the registrar in whose jurisdiction the registered office of the LLP is situated for their approval.
- Issuance of Certificate: If the registrar is satisfied with the application, then he will issue the certificate of incorporation and the name of the LLP will enter into their database.
- PAN Application: After receiving the certificate of incorporation the PAN allotment application shall be made to the NSDL PAN department.
- LLP Initial Agreement: An LLP agreement shall be submitted to the registrar within 30 days from the date of incorporation of LLP, if LLP fails to do so then there will be a penalty of Rs. 100/- per day. The LLP agreement shall be executed on stamp paper. And the same shall be notarized and signed by all the partners as well as by witnesses.