How to Start a Limited Liability Partnership Business?
Minimum Requirements to Set 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.
Stepwise Process of LLP Registration
- Obtain Partner’s DSC & DPIN: The application for LLP Registration is completely online. So, it must be authenticated using the Digital signature of partners. Moreover, Designated Partners must have their DPIN before appointment. These are essential for filing the necessary documents online and ensuring the authenticity of the partners.
- Name Approval of LLP: Choose a unique name for your LLP and submit it to the Registrar of Companies (ROC) for approval. It’s important to ensure that the name adheres to the prescribed naming guidelines and isn’t already registered by another entity.
- Apply for LLP Registration: After obtaining the DPIN and securing name approval, you can proceed to file the LLP registration application with the ROC. This application includes details about the partners, their contributions, and the LLP’s registered office address.
- Upload Documents: Uploading the prescribed documents required for LLP Registration is crucial for completing the application process. Documents include the KYC documents of partners, proof of registered office address, NOC from the owner of office property and legal drafts like MOA & AOA.
- Submit Application & Pay Application Fee: Once all documents required for LLP Registration are uploaded and the application is duly filled out, you need to submit it to the ROC. Along with the application, you must pay the prescribed application fee, which varies based on the LLP’s capital contribution.
- Get LLP Registration Certificate: The completed application is examined by the ROC. If every detail and document is found to be correct, it registers your LLP and grants a Certificate of Incorporation in its name.
- Submit LLP Agreement: After the LLP is registered, you must draft an LLP agreement that outlines the rights, duties, and responsibilities of the partners and the LLP itself. This agreement should be submitted to the ROC within 30 days of registration. It’s a crucial document for governing the LLP’s operations.
What are the Documents Required for LLP Registration in India?
Digital Signature Certificate & DPIN
Partner’s Documents Required for LLP Registration
Partners' Identity Proof
- Voter ID
- Driver’s licence
- Aadhaar card
Partners’ Address proof
- Bank Statement
- Electricity bill
- Telephone bill
- Water bill
Registered Office Documents Required for LLP Registration
- Proof of Registered Office Address: During incorporation, a proof of Registered Office address must be submitted. For this, the applicant can provide any recent utility bill in the company’s name. The bill must not be older than 2 months from the date of application and must contain the accurate registered address on it.
- No Objection Certificate: No Objection Certificate is issued by the owner of the office property. The owner declares that he does not have any objection to the company opening its registered office on his property. It is drafted in a specific format and signed by the property owner. The NOC is a crucial document required for LLP Registration.
Q1: What are the key documents required for LLP Registration?
The essential documents required for LLP registration include Digital Signature Certificates (DSC) and Designated Partner Identification Numbers (DPINs) for partners, proof of registered office address, identity and address proofs of partners, and NOC from the owner of office property. These documents are necessary to establish the authenticity of the LLP and its partners.
Q2: Do foreign partners in an LLP also need to provide documents for registration?
Yes, foreign partners in an LLP must provide their KYC documents for LLP registration, which must be legalised in the country of origin. These documents are crucial to meet regulatory compliance and ensure the legitimacy of foreign partners.
Q3: Can I use my residential address as the registered office address of LLP?
Yes, you can use your residential address as the registered office of LLP. The registered office documents required for LLP registration include proof of address, and a No Objection Certificate (NOC) from the property owner.
Q4: How do I obtain a Digital Signature Certificate (DSC) and DPIN for LLP registration?
DSC and DPIN of partners are essential documents required for LLP Registration. DPIN can be acquired by filing an application on the MCA website. It has lifetime validity without any need for renewal. DSC can be acquired by filing applications to licensed agencies. These are issued for a maximum validity of 3 years, after which they can be renewed for continuity.
Q5: What happens if I don't provide all the necessary documents for LLP registration?
Failure to provide the documents required for LLP registration can result in delays or complete rejection of LLP application. It’s crucial to ensure all documents are complete and accurate to avoid complications in the registration process.