LLP Registration in India
Do it Right. | Get Expert Help!
Registration of an LLP is easy and online. Talk to LLP Incorporation experts at setindiabiz to understand the eligibility requirements, cost and timeline, stepwise process, and List of Documents required for LLP Registration in India.
Consult with an Expert
IMPORTANT DISCLAIMER
We are a professional consulting firm specialising in company registration, taxation, accounting, payroll, compliance, and intellectual property rights (IPR) services to assist new and existing businesses in India. We provide our professional services at a reasonable fee, explaining the eligibility, process, and documents required for setting up and maintaining a business. We also prepare and file necessary applications with relevant government agencies such as the Registrar of Companies (ROC) and the Income Tax Department. We do not directly provide government documents or represent ourselves as a government agency.
Trusted By Leading Brands
Are you a Professional?
Join as a Professional Partner &
receive preferred rates on most
setindiabiz offerings.
receive preferred rates on most
setindiabiz offerings.
Overview of LLP Registration in India
- Professional Fee
₹ 3499/- (Best Fee Guaranteed by Setindiabiz)
- Government (ROC) Fee
The government fee to incorporate the LLP depends on three factors, and our experts will help you calculate the cost of LLP Registration in India. The factors affecting cost are as follows:
- Number of Partners
- Initial Capital
- State
- Cost Calculator
- Timeline
7-10 Working days
- Minimum Requirements
- Partners: Minimum 2, Maximum: No Limit
- Designated Partner: 2 to 15.
- Two Partners & Two Designated Partners
- A Registered Address and Unique Name
- Adequate Capital (No Min or Max Limits)
- Stepwise Process
- Online & Paperless Process
- Government Portal: www.mca.gov.in
- Prescribed Form: Form 2 of LLP Act
- Digital Authentication by Partners DSC
Get Started with LLP Registration in India
Limited Liability Partnership is a new form of Partnership Structure introduced in India under the LLP Act of 2008. The purpose behind its introduction is to overcome all traditional partnership flaws and provide a better alternative to startups. The flaws an LLP overcomes include unlimited liability, no separate management structure, and limited existence of the firm. These flaws bring immense challenges in operating a firm and for the want of a better alternative, the LLP was introduced.
LLP is Best Suited For:
Partnership Businesses
Having Multiple Partners
Seeking Continued Existence
Flexibility in Management
Easy Transfer of Ownership
Play Video about LLP Registration | Complete Guide on Limited Liability Partnership Registration | SetIndiaBiz
Eligibility Criteria for LLP Incorporation in India
2 To Unlimited Partners
The partners of the LLP are natural and legal partners who invest capital in the LLP.
2 to 15 Designated Partners
Designated partners play a crucial role in the overall management of the LLP and ensure compliance.
One Resident Partner
One designated partner of the LLP must be a resident of India during every financial year.
Unique Name of LLP
The name of the LLP must be unique and distinct from others, whether a company or LLP.
Pre Defined Contribution
There is no minimum or maximum capital requirement for registration of LLP. However, there must be some capital.
Legal Object of Activity
The proposed business activity of the LLP must be Legal and well-defined in the LLP Agreement.
List of Documents For LLP Registration
List of Documents
We at Setindiabiz understand the importance of correct documentation in ensuring a smooth and successful Incorporation of the Limited Liability Partnership (LLP). To make it easier for our clients, we have compiled a table below listing all the documents required for the LLP Incorporation process.
Documents of Partner
- Passport size colour photo
- PAN Card (Mandatory)
- Proof of Identity (any one of the below)
- Passport
- Aadhar Card
- Driving License
- Voter ID
- Proof of Residence (Any one of the below)
- Bank Statement
- Electricity Bill
- GAS Bill
- Telephone Bill
- Mobile Bill
Proof of Registered Address
- Proof of Property Ownership
- Electricity Bill
- Telephone Bill
- GAS Bill
- Mobile Bill
- NOC from the Owner of Premises
Note: Address proof for the partners and registered office premises should be the latest issued documents. In any case, older than 60 days are not acceptable. The bill must have the full name and complete address on it.
Note:
- Partners, including both Partners and Designated Partners
- We recommend you send the soft copies of all documents. Also, please send us the filled questionnaire that our startup advisors will share with you. We will verify the information and legal documents sent to us. Don’t hesitate to contact us for clarification and a copy of the prescribed NOC format.
How to Register LLP in India? - Stepwise Process
With the digitisation of all MCA services, the LLP Registration process has become quicker, easier and way more hassle-free. There is no requirement for visiting the ROC’s Office to submit the required application and documents now. The entire process has been shifted online and can be completed in just a few simple steps.
STEP
01
Documentation for LLP Incorporation
The LLP Registration process in India begins with preparing all the required documents, such as Partners Pan, Aadhar, Current address proof and the address for registration of the LLP along with NOC from the owner of the premises. For your convenience, we have provided a detailed list of these required documents in the List of Documents above. Our expert advisors are available for assistance.
STEP
02
Make a Digital Signature for all the partners.
After arranging all the required documents, the next step is to obtain the Digital Signatures of all partners. Digital Signatures are required to sign and authenticate the application for LLP Registration. The digital signature of class 3 is required.
STEP
03
Select & Reserve a unique LLP Name
Your LLP’s name should be unique and not identical to or similar to any already existing company, LLP, or trademark in India. The proposed name should conform to the MCA guidelines. Once you have selected an appropriate name, you are required to get it approved and reserved by the ROC. You can use the FiLLiP or the RUN-LLP (Reserve Unique Name) forms for this. Both these forms are available on the MCA website.
STEP
04
Apply for LLP Registration Online
The application for Limited Liability Partnership Registration online can be found on the MCA website. Once you access the application (FiLLiP), you can fill out all the details. To complete it, also upload the scanned, self-attested copies of the documents. Next, attach a Class 3 Digital Signature of the authorised designated partner and submit the form after paying the prescribed fee.
STEP
05
Incorporation of LLP.
The submitted application reaches the Registrar of Companies and, upon thorough examination, is either approved or rejected. If approved, the ROC immediately grants the LLP a Certificate of Incorporation, confirming its registration. In addition to the certificate, the LLP also receives its LLPIN, PAN, and TAN.
STEP
06
Submit the LLP Agreement
LLP Agreement is a constitution that defines the terms and conditions mutually agreed upon between its partners. It must be submitted within 30 days after the incorporation. The submission of the LLP Agreement marks the completion of the process.
Benefits of LLP Registration in India
A Limited Liability Partnership was introduced to overcome all the flaws of a traditional Partnership structure. So, most of its features closely resemble a Limited Company rather than a traditional Partnership Firm. This enables it to offer multiple benefits that a Firm does not. The table below lists all such LLP benefits for your comprehensive understanding.
Limited Liability
Liability of Partners is limited as per the terms mentioned in the LLP Agreement. Their personal assets are not at risk while paying-off the LLP’s liability.
Attractive for Investors
A distinct legal identity of the LLP lends it credibility and makes it attractive for investors. Investors can inspect the LLP’s data before investing their capital into it.
Preferred by Creditors
Banks and Financial Institutions prefer to lend funds to businesses that are registered with the government. This is because their credentials and financial status are verifiable in real-time.
Easy to Incorporate
An LLP is quick, easy and affordable to incorporate, thanks to a 100% online mode of application. Every step is completed online from filing to documents and authorised signature.
Lower Compliances
An LLP is only required to file its annual returns and financial statements to the ROC every financial year. Such a low level of compliance makes operating an LLP extremely affordable and hassle-free.
Flexible to Manage
An LLP is managed according to the terms of the LLP Agreement. Also, partners from among themselves choose and appoint designated partners as the sole authority to control the management.
Partnership Firm vs LLP Registration
If you’re looking forward to setting up a Partnership business, an LLP can be your best choice! To know why, refer to the table below. We have compared a traditional partnership firm with an LLP here, highlighting both their advantages and disadvantages. Weighing LLPs advantages and disadvantages against a Partnership Firm will help you make an informed choice among the available options.
Limited Liability Partnership (LLP)
Pros
- Limited Liability
- Perpetual Existence
- Distinct Legal Identity
- Low Compliances
- Quick & Affordable Incorporation
- Low Tax Rate
- High Investment Potential
- Separate & Flexible Management
Cons
- Ownership Transfer Can be Challenging
- Lack of Strong Management Structure
- High Penalties for Non-Compliances
- Public Disclosure of Records & Documents
Partnership Firm
Pros
- Optional Registration
- Low Compliance
- Flexible in Operating
- Simple Formation
Cons
- Unlimited Liability for Partners
- Limited Existence
- Limited Investment Potential
- No Transfer of Ownership
- No Separate Management
- No Tax Benefits for Partners
FAQs on LLP Registration
1. What are the benefits of LLP registration for Small Businesses?
An LLP is the most suitable structure for small businesses in India, as there are fewer regulations to comply with. For instance, auditing its account books is optional until the turnover exceeds 40 Lac or the capital exceeds 25 Lac.
2. Is the LLP structure suitable for my business?
The decision to choose a business structure depends on several factors. These include the number of owners, amount of capital, mode and scale of operations, objective of business, etc. As an entrepreneur, we recommend that you closely analyse all LLP advantages and disadvantages before you decide. If you need further help, contact us.
3. What is the LLP Registration cost in India?
The LLP Registration cost depends on the number of partners, capital, and the location of the LLP’s registered office address. Contact setindiabiz startup advisors through chat or call to know the exact cost of LLP Incorporation in your case. The expenses to set the LLP are primarily towards the following items
- Digital Signature
- Professional Fee: Starts@₹3499/- at setindiabiz
- ROC Fee: Varies on the capital level
- Stamp Duty on LLP Agreement: Varies based on capital and the state.
4. What is an LLP Identification Number (LLPIN)?
LLPIN is a unique number allotted to the LLP by the Registrar of Companies for its identification. It is allotted after the LLP registration and mentioned on the Certificate of LLP registration as well.
5. Is an LLP a better business type for raising funds from private investors?
It is easier to raise funds for an LLP than for a traditional partnership. This is because it restricts the liability of its owners to a pre-fixed, mutually agreed-upon ratio. On the contrary, a conventional partnership burdens its partners with unlimited or 100% liability. Moreover, unlike a traditional partnership, the existence of an LLP does not depend on the life of its partners.
6. Who contributes capital to LLP?
The capital in an LLP must be introduced by its partners. The share of capital contribution is mutually decided among partners and is mentioned in the LLP deed.
7. What is the minimum and maximum capital required to start an LLP?
The LLP Act does not prescribe any minimum or maximum capital limits for a limited liability partnership. This means you can start an LLP with any amount of capital
8. What is the process for LLP registration?
We have discussed the step-wise process in great detail above in the process section; the LLP Registration Process in 4 steps:
- Step 1: Documentation
- Step 2: Select & Reserve the name of the LLP
- Step 3: Fill Out the FiLLiP Form for LLP registration online
- Step 4: Issue of Certificate of Incorporation
9. What are the key LLP documents required for Registration?
LLP documents required for Registration include the KYC documents of all partners. Also, the registered address proof of LLP is needed. The no objection certificate (NOC) from the owner of the registered office address must accompany this. After incorporation, you must also submit the stamped and notarised LLP deed to the ROC.
10. What is the LLP's annual compliance?
The LLP must maintain proper books of account. The designated partners of the LLP are obligated to prepare the annual financial statement within 180 days of the end of the financial year. The following annual compliance must be done within its due date; non-compliance with this can lead to serious legal implications.