LLP Registration in India

Section 2(e) of the LLP Act, Specifically defines the word "Business" which says [ Business includes every trade, profession, service and occupation ] The definition specifically exclude Manufacturing, Production etc. hence you are advised to pursue only those activities which are not in the nature of Manufacture or Production as such.

We have prepared a detailed and easy to understand comparative table showing availability of features and advantages of one form of business to that of others. The same can be found at the end of this page. Click here to go there.

For incorporation of an LLP under The Limited Liability Partnership Act, 2009, anyone from below mentioned list of the document is acceptable as Identity Proof of the partner or designated partner of the proposed LLP.

• Passport
• Driving License
• Voter ID Card

A Limited Liability Partnership is incorporated with a physical address to be declared as the registered office of the newly registered LLP. Following are the list of the document which is acceptable as proof of premises where the registered office of the LLP is situated. The premises proof should not be older than two months.

• Electricity Bill
• Gas Bill
• Telephone Bill
• Mobile Bill
• NOC from the Owner of Premises

For LLP formation in India, following are the forms on which partners need to sign, All the forms/formats to be printed on plain A-4 size paper and signature should be preferable with a blue ink pen.

• Consent of All Partner for LLP Incorporation
• Subscriber Sheet for LLP Registration

Before an LLP occupies any premises as its registered address, a no objection certificate must be obtained from the owner of the premises. Similarly, at the time of filing for LLP registration, we need a NOC from the current owner of the premises along with proof of ownership as explained above.

• Format of NOC

A registered office is required to be declared at the time of LLP incorporation and to be maintained by the LLP, which must be capable of receiving and acknowledging all communications and notices as may be addressed to it. Further, the statutory records of the LLP also need to be maintained at the registered address of the LLP. Hence having registered address at co-working space is not acceptable unless this is a lockable area.

Limited Liability implies that the partners of the LLP are not personally liable to pay debts of the business. They are only responsible for the outstanding shares of the capital of the LLP.

Apart from the concept of Limited Liability as explained above an LLP have following significant features

• The LLP will continue to exist, no matter how many partners, designated partners join or leave.
• An LLP can Sue and be Sued in its name.
• A legal entity like an LLP has a separate identity from its partners.
• Like a person, an LLP can purchase, sell, own, possess, enjoy and transfer property rights to anyone in its name.

The digital signature is an equivalent of physical or paper certificates in digital format. As the application For LLP Registration is filed online with Digital Signatures of the designated partners, hence the process starts with the issuance of the digital signature for all the designated partners. Photo, ID and Address proof is to be submitted along with Form for the issuance of DSC.

It is a permanent number issued by the registrar of companies, as a unique identification number to the designated partners of the LLP. No person can hold an office of the designated partner unless he is issued a DIN. For allotment of DIN, an application to MCA is made with Photo, Attested ID and Address proof duly attested by CA, CS or CMA

The partners of the LLP bind themselves concerning their mutual rights and obligation, capital contribution ratio, profit sharing ratio in a document which is known as LLP Agreement. After incorporation of LLP, the partners need to execute the same and file a copy with the registrar of companies within 30 days of Incorporation, failing which a penalty of Rs. 100 day is imposed for each day of delay.

The Income-tax Department allots a unique 10 Digit alphanumeric number as a permanent account number, also known as PAN Number. To comply with TDS provisions, every taxpayer needs to obtain a Tax Deduction Account Number. To open a Bank A/c, the LLP need to submit a prescribed application along with KYC of LLP and all its partners.