What is the LLP Registration Process and Why is it Required?
Advantages of LLP Registration Process in India
- Legal Recognition and Credibility: LLP registration process provides legal recognition to the business entity. It establishes the LLP as a separate legal identity distinct from its partners. This enhances the credibility of the LLP and instils trust among clients, suppliers, and investors.
- Limited Liability Protection: One of the other key benefits of the LLP registration process is limited liability protection for partners. LLP registration ensures that the personal assets of partners are protected while paying off the business liabilities and debts. This means that partners are not personally liable for the LLP’s obligations, reducing their financial risks while operating the business.
- Perpetual Succession: LLP registration process ensures perpetual or continued existence of the LLP. This indicates that the LLP continues to exist even if there are changes in the partners. The LLP can enter into contracts, hold property, and conduct business operations in its own name, irrespective of changes in the partner composition.
- Flexibility and Ease of Operations: LLP registration provides flexibility in terms of management and decision-making. It allows partners to define their roles and responsibilities in the LLP agreement. The LLP structure also offers ease of operations, as it has fewer compliance requirements compared to its other corporate counterparts like companies.
- Tax Benefits: LLP registration offers tax advantages. LLPs are treated as separate entities for tax purposes, allowing partners to take advantage of tax planning strategies and deductions available to the business.
- Access to Funding and Business Opportunities: LLP registration enables the LLP to access funding from banks, financial institutions, and venture capitalists. It also opens up opportunities for collaborations, contracts, and government tenders, as many organisations prefer to engage with registered entities as opposed to unregistered ones.
LLP Registration Process in India: A Step-by-Step Guide
Step 1: Obtain the DPIN of all Designated Partners
Step 2: Obtain DSC of all Partners
Step 3: Name Approval of the LLP
Step 4: Apply for LLP Registration
Step 5: Making the payment and retaining the SRN
Step 6: Issuance of the Certificate of Incorporation
Step 7: Submission of the LLP Agreement
Key Documents for LLP Registration Process In India
|Documents of all Partners||Registered Office Address|
Q1: How long does the LLP Registration process take in India?
LLP Registration process takes about 2 weeks to complete. However, the process can be delayed if the application and documents are not filed correctly, or if the ROC Office is backed up with workload.
Q2: What is the overall cost of the LLP Registration process?
The cost of the LLP Registration process in India depends on the paid capital of the business. It ranges between Rs.500 to Rs.5000. Read our detailed guide on LLP Registration Fees in India for more information.
Q3: Who registers an LLP in India?
LLPs are registered by the Registrar of Companies, an office under the Central Ministry of Corporate Affairs.
Q4: Is the LLP Agreement filed during the LLP Registration process?
No. LLP Agreement is not filed during the LLP Registration process. It is filed within 30 days from the date of LLP registration.
Q5: What purpose does DSC have in the LLP Registration process?
DSC or Digital Signature is used to sign the LLP Registration form FiLLiP (Form 2) by the authorised designated partner. The designated partner must use a Class 3 DSC for this purpose.