Guide on Documentation for LLP Registration
Table of Contents
What conditions must be met before setting up an LLP?
- Number of partners: To register an LLP, a minimum of two partners are needed. However, there is no maximum limit on the number of partners that an LLP can have.
- Prescribed Minimum Capital: Although there is no minimum amount of capital prescribed to set up an LLP. However, the partners must infuse sufficient capital for the smooth functioning of the business.
- Number of Designated Partners: Unlike the partners of a Partnership firm, the partners of an LLP are not obligated to control the management of the business. For this purpose, the partners may appoint designated partners, their minimum number being 2, with the requirement of at least 1 who is an Indian Resident. The maximum number of Designated Partners that a firm can have is 15.
- Unique and Valid Name: The name of the LLP must be distinct, original and not identical to the name of an existing company or LLP. Also the name must not be similar to a registered or an applied trademark. Read our blog on name guidelines to know more about how to select a valid name for an LLP.
- Registered Office Address: The LLP must have a registered address for its principal office or place of business before it begins the process of its formation and Registration.
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What are the benefits of forming an LLP?
- Liabilities of partners are limited in the ratio mutually agreed by them.
- Owing to its registration or incorporation, an LLP has a separate legal identity.
- An LLP can make purchases and open a bank account in its name because it has a separate legal identity.
- Forming an LLP is less expensive than forming a company.
- An LLP requires fewer compliances than in a Private Limited Company.
What are the documents required for LLP Registration in India?
Partners' and Designated Partners’ Documents
- Voter ID
- Driver’s license
- Aadhaar card
- Bank statement
- Electricity bill
- Telephone bill
- Water bill
Documents of registered office space of the LLP
- An LLP must have a registered address of its principal office or place of business before beginning the process of its incorporation. If it does not possess a registered office address, it can go ahead with its incorporation with a temporary address, but within 30 days from the date of its incorporation it must have a registered office address and intimate the same to the Registrar of Companies in form INC 22.
- If the registered office is rented, the rent agreement and the No Objection Certificate from the owner must be submitted during LLP registration. The landlord’s approval is required in order to let the LLP utilize the space as its “registered office”.
- In addition, any of the following utility bills can be furnished as documents of address proof – gas, electricity, telephone, or water bill not older than 2 months.
Digital Signature Certificate (DSC)
Stepwise process of LLP registration
- Obtaining a DPIN and DSC of the applicant designated partner
- Arrange all documents required for LLP registration beforehand, to avoid any hassle or hindrance during the process of registration.
- Registration of a Limited Liability Partnership (new registration).
- Reserve the name of the LLP using Form 1 or RUN application
- Fill out Form 2 for LLP registration and submit it with the prescribed documents
- After the registration of the LLP, draft and sign the LLP Agreement, and submit it within 30 days from the date of registration.