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LLP Registration in India


LLP Registration in India :-

Limited Liability Partnership  (LLP) are commercial vehicles which combine the features of partnership and company form of business .The concept of Limited Liability Partnership (LLP)  has been introduced in India by way of Limited Liability Partnership Act, 2008 (notified on 31st March 2008).

A Limited Liability Partnership combines the advantages of both the Company and Partnership into a single form of organization. In an LLP one partner is not responsible or liable for another partner's misconduct or negligence. In an LLP, all partners have limited liability for each individual's protection within the partnership, similar to that of the shareholders of a limited company. 

LLP is a separate legal entity, liable to the full extent of its assets; the liability of the partners would be limited to their agreed contribution in the LLP. Further, no partner would be liable on account of the independent or un-authorized actions of other partners, thus allowing individual partners to be shielded from joint liability created by another partner’s wrongful business decisions or misconduct.

Benefits of LLP :-

·           1.   Separate legal entity

·            2. Easy to establish

·            3.  Flexibility without imposing detailed legal and procedural requirements

·            4. Perpetual existence irrespective of changes in partners

     5. Internationally renowned form of business in comparison to Company.

   6.  No requirement of minimum capital contribution

    7.  No restrictions as to maximum number of partners

     8. LLP & its partners are distinct from each other

    9. Partners are not liable for Act of other partners.

  10. Personal assets of the partners are not exposed except in case of fraud .

11. Easy to dissolve or wind-up

12. Professionals like CS / CA / CWA / Lawyers can form Multi-disciplinary     Professional LLP .

13. No requirement to maintain statutory records except Books of Accounts

14. Less Cost of formation (Compared to a company)




Stage I – Partners :-

 To form a LLP, there Minimum two partners and at least two shall be designated partners having DIPN. In case of body corporate as partners, their nominee can be act as designated partners. Out of two designated partners, one must be resident in India. (Who has stayed in India for a period of not less than one hundred and eighty two days during the immediately preceding financial year)


Stage II - Obtaining DPIN & Digital Signature :-

 DPIN can be obtained by making an application online with MCA . After submitting the online application, signed physical copy of Form 7 has to be submitted to Ministry of Corporate Affairs along with certified copies of address proof and Identity proof of the applicant.Digital Signature can be obtained from any of the Certifying Authorities in India.



Stage III - Name filing :-

 After finalization of name, an application of name availability has to be filed in form 1 with MCA for approval. Please note that selection of name is subject to Guidelines issued by MCA.

Stage IV - Agreement :-

 LLP agreement has to be drafted line with LLP Act. It is not mandatory to file LLP agreement at the time of registration and same can be file with in 30 days. If no agreement is framed, provisions of Schedule I of the LLP Act shall be applicable.


Stage V  - Filing of Incorporation Documents :- The following documents along with required attachments has to be filed with MCA

Form 2  :    Details of partners, registered office etc

Subscription Sheet: All partners are required to subscribe their names along with signatures to the subscription sheet, which shall be witnessed by any chartered Accountant/Company Secretary/Advocate in practice.

Form 4 :           Consent of Partners - Consent of each partner to become a partner of Liability Partnership

Form 3:           LLP agreement – this can be filed with in 30 days from the date of registration

Above said documents are required to be filed after signing digitally. After verification, registrar will register all documents and issue Certificate of Incorporation.

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