Limited Liability Partnership is a type of partnership firm which is mostly preferred by entrepreneur. It is the easiest form of business structure with the benefit of limited liability. LLP registration gives freedom to partners to form a partnership structure where the liability of each partner is limited to the amount they contribute into the business. Limited liability partnership firm registration means that if the partnership fails, creditors cannot ask for partner’s personal property or income.

LLPs or Limited Liability Partnership is a type of business structure which offers extra benefits in comparison to partnership firm. It provides limited liability to its partners at a very nominal compliance costs. Moreover, the Partners of the firm can organize their internal structure like a partnership firm.

In short, LLP is a separate legal entity from its member that has the power to extend all its assets keeping the liabilities of partners limited. Hence, a Limited Liability Partnership is a hybrid of a company and a partnership firm.

LLPs or Limited Liability Partnership is a type of business structure which offers extra benefits in comparison to partnership firm. It provides limited liability to its partners at a very nominal compliance costs. Moreover, the Partners of the firm can organize their internal structure like a partnership firm.

In short, LLP is a separate legal entity from its member that has the power to extend all its assets keeping the liabilities of partners limited. Hence, a Limited Liability Partnership is a hybrid of a company and a partnership firm.

• Enjoys The Status Of Corporate Bodies

As per Section 3 of the Limited Liability Partnership Act, 2008, under LLP registration a firm is a corporate body which has come into force with effect from April 1, 2009. The Indian Partnership Act 1932 is not applicable to LLP.

• Perpetual Succession

A Limited Liability Partnership firm has a benefit of perpetual succession and can continue its existence even after the retirement, death, insanity of one or more respective partners in the firm.

• Shares Limited Liability

The most important feature of LLP is limited liability that all its partners should entertain which means their personal assets are safe and won’t be used to pay the losses or debt of the firm. Apart from it, innocent partners of a Limited Liability Partnership firm are not liable to pay for the wrong deeds done by some other partner.

• Fewer Credentials Are Required

A person can start an LLP firm with just two partners out of which one should be an Indian resident. The designated partners of limited liability partnership firm can either be an individual or a corporate body. Moreover, there is no specific capital requirement to incorporate a limited liability partnership firm registration.

• Quicker Decision Making Process

An agreement is printed on a stamp paper and signed by all the partners that define their roles and duties in the firm. It helps them in the decision making process.

• Easy Online Registration And E-Filling

MCA has simplified LLP registration and made it an easy online procedure. The forms and the documents are filed electronically on the official MCA portal. A designated partner of a limitedliability partnership firm has to obtain DSC to sign these documents and forms.

• Easy Conversion

If a public or private company or a partnership firm decides to emerge as a limited liability partnership, they can easily convert as per the provisions of the applicable act.

• Efficient Business Management

The business is managed by the respective partners as per their roles and duties. The designated partners of the firm are responsible for the legal compliances.

• Profit Sharing Business

Profit is equally shared amongst all the partners of a limited liability partnership firm. An LLP registration cannot be incorporated for a charitable purpose. Its purpose is to carry on business activities with an aim to earn profit.

LLP registration is an easy online procedure that can be accomplished within 4 registration steps and 3 post incorporation steps.

Here is the step by step guide for Limited Liability Partnership firm Registration:

• Firm’s Name: Apply For Name Approval

The third step under LLP registration is reserving a name for the limited liability partnership firm. For that, an applicant has to file LLP-RUN form. The name should be unique and non-offensive. For this, you can use the free name search facility available on the MCA Portal. The system is quite helpful and provides a list of names resembling with your firm’s name. This would help you to select an appropriate name. An applicant can provide up to 2 names that would be further analyzed by the registrar of companies. In case of rejection/objection, you can re-submit your form after 15 days of the rejection.

1. Login On MCA Website: – You have to create a login account on MCA Website whereas the pro-existing users can utilize earlier account also. You have to click on the emblem “RUN” in MCA Service after Login. An online form will be displayed where an applicant have to fill the information online which can’t be downloaded.

2. Details To Be Mentioned In Online Form: You have to provide information, such as- Entity type LLP, LLPIN (when an existing company desires to change its name and is utilizing RUN to reserve a new name for approval), Proposed name (under the Auto Check Facility), Comments (cite Objects of the proposed LLP and any other pertinent information Like Trade Mark etc.), Choose File (Any relevant attachment)

3. Choose File – PDF And Submission On MCA Website: – It is available to upload the PDF documents. User shall submit the Form with MCA website after completion of above steps.

4. Payment Of Fees And Validity Of Reserved Name: It must be noted that there is no option of pay later challan in the Online form “RUN”. Therefore, the applicant has to pay fees right away after submission of form, and the challan shall be generated afterwards. Moreover, the reserved name will be valid for 20 days from the date of approval of Firm’s Name.

Note: – It Must Be Noted That The DSC And The DIN Shall Not Be Needed For Filing The Online Form RUN, DSC & DIN not required for filing of RUN form for reservation of Name. Only account of MCA portal is mandatory. Moreover, only one Resubmission of application is permitted in case of reservation of Name. Two Names can be inserted in RUN form. You must note that it Is Not Mandatory To Attach Documents While Reserving Name

• Firm’s Incorporation

Once the name has been reserved for the limited liability partnership firm registration you can move ahead to the incorporation of your LLP. For this, you have to file FiLLiP i.e. Form for incorporation of Limited Liability Partnership. It is filed with the registrar of the firm of the respective state in which the registered office is situated. Applicant has to pay a particular amount of incorporation fees as per the Annexure “A”.

All the documents and applications are duly checked by the authorities and if all goes well, incorporation certificate will be issued.

Here is a list of documents required for registration:

Documents Of Partners :

• ID Proof/PAN Card of the Partners
• Residential Proof of the partners
• Copies of Passport size Photograph
• Passport (in case of Foreign Nationals/ NRIs)

Documents Of LLP :

• Copies of the Proof of Registered Office
• DSC-Digital Signature Certificate

Documents of Partners :

• ID Proof/PAN Card/ Of Partners

All the partners of the firm are needed to provide their PAN card at the time of registering Limited Liability Partnership.

• Residential Proof Of Partners

Partner must submit anyone out of Passport, Driver’s license, Voter’s ID, or Aadhar Card. Moreover, the name & other details as per address proof & PAN card must be exactly same.

• Photograph

Partners should also provide their passport size photograph, preferably on white background.

• Passport (In Case Of NRIs/Foreign Nationals)

Foreign nationals & NRIs have to submit their passport by mandatorily for becoming a partner in Indian Limited Liability Partnership. Passport has to be duly notarized by the concerned authorities in the country of such foreign nationals & NRI, in addition Indian Embassy placed in that country can also authorize the documents. They have to submit a proof of address also which will be a bank statement, driving license, residence card/any government issued identity proof including the address.

Documents of LLP :

Proof Of Registered Office Address 

Proof of registered office must be submitted during the LLP registration within 30 days of its incorporation.

If the designated registered office is taken on rent, in that case the rent agreement and a NOC- no objection certificate from the landlord must be submitted. No objection certificate will act as the consent of the landlord to give permit the LLP to use the place as ‘registered office’ and operate its business.

In addition, anyone document out of utility bills like electricity, gas, or telephone bill must be submitted along with the application. Those bills must contain complete address of the located premise and owner’s name & the document shouldn’t be older than past 2 months.

Digital Signature Certificate

One of the designated partners of the LLP needs to opt for a DSC (digital signature certificate) as all documents & applications will be digitally signed by the concerned signatory.

Post Incorporation Compliances

Just like registration procedure, post compliances are also important. Once the LLP has been incorporated, you have to fulfill post incorporation compliances that are for single time only.

• LLP Agreement

LLP agreement is an important document that defines the rights and duties of all the respective members who are the part of LLP firm. It helps to avoid future conflicts and disputes in partners and hence help in maintaining peace and prosperity.

It has to be filed on the MCA portal within 30 days of LLP incorporation. It shall be printed on a stamp paper and signed by all the partners of the firm. Value of the stamp paper varies from state to state.

• PAN And TAN

Apply for PAN and TAN after the incorporation because without it firm cannot open a bank account for carrying out further transactions.

• Open A Bank Account

Once you have got your PAN, open a bank account in the name of your LLP registration firm to carry out financial transactions.

It usually takes around 15 days to complete the whole process starting from obtaining a DSC to submission of LLP agreement. The fees may vary from state to state.