Requirements to Register an LLP

To be eligible for registering as an LLP, the following criteria must be met:

1. At least two partners are required to form an LLP (no upper limit)

2. If a body corporate is a partner, a natural person must be nominated to represent it

3. Each partner must have an agreed contribution towards the shared capital

4. LLP should have an authorized capital of at least ₹1 lakh

5. At least one designated partner should be an Indian resident.

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Process of Registration for Limited Liability Partnership (LLP)

1. Minimum Requirements

Minimum 2 Partners are needed to Register an LLP in India, both partners should be the resident of India.

2. DSC Identification Number for Partners

Partners have to apply for the DSC ( Digital Signature Certification), its needed while filings forms & also in future while filing ROC Return and many other things.

3. DIN Identification Number for Partners

Partners have to apply for DIN Number that is mandatory to apply for partnership in Limited Liability Partnership Firm.

4. Name Application in ROC Delhi for LLP Registration

Registration Partners have to apply for the Name Application in ROC through the MCA Portal. Then ROC Approved the Name after the verification depends upon that there is no registered same name of other company or trademark.

5. Filings of Incorporation Documents to ROC

Some forms are filled on MCA Portal after the name verification. During the Filings of forms we have to ensure about all the other things because when there is the chance of resubmission then we have to file again.

6. Issue Certificate of Incorporation by ROC

After Verification of the forms, ROC issued the main Certificate of Incorporation i.e is proof of the registration. After Receiving Certificate of Incorporation we have to open a current bank account in the name of LLP.

7. Drafting and Filings LLP Agreement

After Receiving of Certificate of Incorporation we have to File LLP Agreement to the ROC Office through MCA Portal. LLP Agreement is like a partnership firm agreements in that contain all the details regarding the partners.

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Benefits of an LLP

1. Limited Liability

The members of an LLP are only liable for a small amount of debt incurred by it. On the other hand, for proprietorships and partnerships, the personal assets of directors and partners are not protected if the business goes bankrupt.

2. Separate Legal Entity

An LLP is a separate legal entity from the partners in it. It has an uninterrupted existence that follows perpetual succession, i.e., the partners might leave, but the business remains. The terms of dissolution have to be mutually agreed upon for the firm to dissolve.

3. Flexible Agreement

Transferring the ownership of an LLP is also simple. A person can easily be inducted as a designated partner and the ownership switches to them.

4. Suitable For Small Business

LLPs having a capital amount less than ₹25 lakhs and turnover below ₹40 lakhs per year do not require any formal audits. This makes registering as an LLP beneficial for small businesses and startups.

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Documents Required

1. Photographs of Each Partner

2. PAN Card Copy of Partners

3. Identity Proof (Aadhaar / Voter ID / Driving License / Passport) Any One

4. Address Proof (Bank Statement / Electricity, Mobile, Telephone Bill) Any One (Not older than two month)

5. Utility Bill as Proof of Registered Address (Not older than two month)

6. NOC from the Owner of the Premises