Documents required for LLP Registration in India

Limited Liability Partnership (LLP) is a somewhat new sort of business element presented in India through the LLP Act, 2008. LLPs are generally famous among independent companies and with late unwinding of FDI rules identifying with LLP, the interest to register a LLP among NRIs and Foreign Nationals has additionally expanded. In this article, we give subtleties and portrayals of the documents needed for LLP registration in India.

Table of Contents

What is Limited Liability Partnership (LLP)?

A Limited Liability Partnership (LLP) is a type of business that offers the joined highlights of ‘company’ and ‘partnership’ business structures. This business structure was presented in India in April 2009 with the enactment of the Limited Liability Partnership Act, 2008.

A LLP joins the upsides of both ‘Company’ and ‘Partnership’ in a solitary business substance. In a LLP, a partner isn’t capable or obligated for another partner’s offense or carelessness. All things considered, all partners have limited liability, restricted to their own demonstrations of bonus or omission, like investors’ liabilities in a limited company.

Notwithstanding, dissimilar to company investors, LLP accomplices reserve the option to deal with the business straightforwardly. A LLP likewise restricts the individual obligation of a partner for the blunders, exclusions, inadequacy, or carelessness of the LLP’s workers or different agents. The administration of the everyday business is laid out in the LLP Agreement, giving partners the opportunity to control issues of the business.

LLP registration is managed by the Ministry of Corporate Affairs (MCA) through the Office of the Registrar of Companies. The joining system is completely electronic, like the organization registration process, for example, applications and documents are recorded electronically and the Registrar issues a carefully marked Certificate of Incorporation (COI).

What are the benefits of LLP?

  • Limited Liability: Partners’ obligation of the LLP is restricted and it is restricted uniquely to their commitment by them to the LLP.
  • Separate Legal Entity: LLP is a different lawful entity and a juristic individual particular from its partners and both can sue one another and be sued.
  • Coherence of presence of the LLP: LLP keeps on existing even after the demise of the partner.
  • Negligible regulatory compliance: Regulatory compliances are exceptionally less in the event of LLP when contrasted with company type of entity.
  • Property Ownership: LLP partakes in the option to possess, appreciate and transfer property. The privileges can be practised by the LLP in its own name.
  • No Audit Requirement: There are no audit necessity up to turnover of under 40 Lakhs and capital commitment of under 25 Lakh.
  • The transferability of proprietorship: The responsibility for LLP can be effortlessly transferred to someone else. In any case, the transferee ought to be accepted as a Designated Partner of the LLP.
  • Tax assessment: Both Partners and LLP can give advance to one another. There is no dividend tax in the event of LLP.

Documents required for LLP registration in India

The following documents are obligatorily needed for Indian Nationals joining an LLP:

  • PAN Card: PAN Card duplicate of the proposed Partners of the LLP will be needed for the LLP registration process. The Department of Income Tax in India gives the PAN or Permanent Account Number which is an unique ID number
  • Address Proof: Notwithstanding the PAN Card duplicate, the proposed Partner should likewise present an address verification and residential evidence. The address verification submitted should have the name of the Partner as referenced in the PAN Card and the most current location. The record should likewise not be older than 2 months. The following documents are adequate address proof for Indian Nationals.
    • Identification
    • Voter Identity Card
    • Ration Card
    • Driving License
    • Electricity Bill
    • Phone Bill
    • Aadhaar Card
  • Residential Proof: Notwithstanding the address verification, submit residential proof to register an LLP. Residential verification is utilized to approve the current location of the Partner. The accompanying documents are OK residential proof:
    • Bank Statement
    • Electricity Bill
    • Phone Bill
    • Mobile Bill

The following documents are obligatory for Foreign Nationals registering an LLP:

  • Visa: In the event of Foreign Nationals, a Passport is compulsory to submit as proof of character. The Passport should likewise be notarized or apostilled in the country it was given. In the event that the report is in an unknown dialect, then, at that point, decipher with an authority interpreter to English and authorized or apostilled. Further, assuming the Passport doesn’t contain the date of birth of the holder, then, at that point, an extra document demonstrating the date of birth of the Partner should be given, appropriately guaranteed or verified or legally approved or apostilled.
  • Address Proof: Notwithstanding the notarized or apostilled Passport duplicate, the foreign national should present address proof that is likewise legally approved or apostilled. The address proof submitted should have the name of the Partner as referenced in the Passport and the most current location of the Partner. Further, the document should likewise not be older than 1 year for foreign nationals. The following documents are OK address proof for Foreign Nationals.
    • Driving License
    • Residence Card
    • Bank Statement
    • An officially sanctioned type of ID containing the location.
    • On the off chance that the document is in an unknown dialect, then, at that point, it should be deciphered by an authority interpreter and legally approved or apostilled.
  • Residential Proof: Notwithstanding the address verification, present residential evidence during the LLP registration interaction to approve the current residence of the Partner. As a material for addressing evidence, the residential verification should likewise contain the name of the Partner as referenced in the Passport and should not be more established than one year. The following documents are satisfactory residence confirmation:
    • Bank Statement
    • Electricity Bill
    • Phone Bill
    • Mobile Bill
  • Proof of Registered Office Address: Proof of registered office must be submitted during registration, or inside 30 days of its consolidation. Assuming the registered office is taken on lease, lease arrangement and a no objection certificate from the landowner must be submitted. No objection certificate will be the assent of the landowner to permit the LLP to utilize the spot as ‘registered office’.
    In addition, anybody report out of service charges like gas, power, or phone bill should be submitted. The bill ought to contain total location of the reason and proprietor’s name and the record shouldn’t be more established than 2 months.
  • Digital Signature Certificate: One of the assigned partners needs to pick a digital signature certificate additionally since all documents and applications will be carefully signed by the approved signatory.

Process of LLP registration in India

  • Issue of Digital Signature Certificate (DSC): DSC is important to sign the e-application for registration of LLP. Photograph, ID and Address evidence is needed with the DSC structure for DSC issuance.
  • Name Approval: Name registration of LLP is needed for application for registration of LLP. The name of LLP ought to be one of a kind and not be like the current or applied organization, LLP or brand name. In Form LLP_FiLLiP (eForm-2) name registration can be applied at the same time with the application for LLP registration.
  • Incorporation Certificate of LLP: After DSC, Name registration or LLP_FiLLiP (eForm-2) fuse reports are submitted to MCA for registration of LLP, the Registrar issues the certificate of incorporation after his/her satisfaction. Assuming Partners as of now have supported DPIN then that will be utilized and in case Partners don’t have endorsed DPIN then DPIN will be supported at the same time with Registration of LLP.
  • LLP Agreement documenting with Registrar: After incorporation of LLP, the partners of the LLP should go into a LLP Agreement and record it with the ROC inside 30 days of Incorporation. Non-accommodation of LLP Agreement brings about a punishment of Rs. 100 for every day of postponement.
  • Application for PAN and TAN of LLP: PAN and TAN are needed to be taken for the smooth running of the business.
  • Bank Account Opening Support: A LLP should have a current account in its business name, to do the transaction of business.

Final Word

Limited Liability Partnership (LLP) is a more up to date type of business that is a combination of a company and a partnership firm. While it has the advantages and qualities of a private limited company, it very well may be worked deftly actually like an ordinary business.

Compliances are lesser in LLP when contrasted with an company, yet the partners have limited responsibility since LLP goes about as a separate legal entity from its partners.

Copyright © 2022 Goyal Mangal & Company.