LLP Registration in India

Q. Who is best benefited by LLP registration in India?

Ans:- Limited Liability Partnership Registration in India is a suitable structure for service and consulting businesses like HR.

Q. What is a Limited Liability Partnership (LLP)?

Ans:- Limited Liability Partnership (LLP) is a type of partnership that contains feature of conventional partnership and company form of organization. It is regulated by a contractual agreement between the partners under the Limited Liability Partnership Act, of 2008.

Q. What is the eligibility for LLP Registration in India?

Ans: The following are LLP registration requirements in India or to register LLP company in India:

• Minimum Person Requirement- A minimum of 2 people are required to register an LLP in India and those 2 people become designated partners in LLP.
• Minimum Capital Requirement- The capital of the business depends on the need of the business and statutorily no minimum capital is required to start the LLP. 
• Unique Name-The name of the LLP should be unique and should not be similar to any existing LLP, company, or trademark.
• Resident Designated Partner- Among designated partners, one person must be a resident Indian.
• Notes
• 1) PAN cards for Indian nationals (mandatory)

Q. What are the required documents for LLP Registration/LLP Incorporation in India?

Ans:- The following are the documents required for LLP registration-

Q. What are the procedure for Limited Liability Partnership Registration in India?

Ans:- The following are the procedure for LLP registration in India-

• Step 1: Reservation of name of company
• Step 2: Take DSC of Designated Partners
• Step 4: Preparation of documents and e-application
• Step 5: Get a certificate of LLP registration, PAN, and TAN
• Step 5: Open a Bank Account of company

Q. What are the benefits of LLP Registration in India?

Ans:- The following are the benefits of LLP company registration in India-

• Separate Legal Existence: LLP itself are separate legal entity from its partners.  So LLP in its name can enter into contracts with entities/parties.
• Limited Liability of Partners: The financial liability of partners is limited up to the amount of capital contribution done by them.
• Lower Compliance Agreement:  Compliance requirement in LLP is very low as compared to private companies. Unlike companies, its audit requirements are exempt up to certain turnover or contribution.
• Flexible Operation: In LLP, partners’ roles are clearly defined through LLP agreement, which ensures flexibility in the operation of LLP.

Q. What are concepts of “Limited Liability Partnership”?

Ans:- The following are the concepts of Limited Liability Partnership-

• LLP is an alternative corporate business form that gives the benefits of the limited liability of a company and the flexibility of a partnership.
• The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its name.
• The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.
• Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct.
• Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity.

Q. What are structure of LLP?

Ans- LLP shall be a body corporate and a legal entity separate from its partners. It will have perpetual succession.

Q. What are advantage of LLP form of business?

Ans- LLP form is a form of business model which:

• is organized and operates based on an agreement.
• provides flexibility without imposing detailed legal and procedural requirements
• enables professional/technical expertise and initiative to combine with financial risk-taking capacity in an innovative and efficient manner

Q. What are difference between “LLP” and “Traditional Partnership firm”?

Ans- The follwoing are the difference between “LLP” and Traditional Partnership Firm-

• Under a “traditional partnership firm”, every partner is liable, jointly with all the other partners and also severally for all acts of the firm done while he is a partner.
• Under LLP structure, the liability of the partner is limited to his agreed contribution. Further, no partner is liable on account of the independent or un-authorized acts of other partners, thus allowing individual partners to be shielded from joint liability created by another partner’s wrongful acts or misconduct.

Q. What is the difference between “LLP” and a “Company”.

Ans- The following is the difference between ‘LLP’ and ‘company’-

• A basic difference between an LLP and a joint stock company lies in that the internal governance structure of a company is regulated by statute (i.e. Companies Act, 1956) whereas for an LLP it would be by a contractual agreement between partners.
• The management-ownership divide inherent in a company is not there in a limited liability partnership.
• LLP will have more flexibility as compared to a company.
• LLP will have lesser compliance requirements than a company.

Q. What are the steps to incorporate LLP?

Ans- The following are steps to LLP registration in India or LLP formation in India:

• Name reservation– The first step for Limited liability partnership firm registration (LLP) is reservation of name of LLP. Applicant has to file eForm 1, for ascertaining availability and reservation of the name of a LLP business.
• Incorporate LLP– After reserving a name, user has to file eForm 2 for incorporating a new Limited Liability Partnership (LLP).
• E-form- e-Form 2 contains the details of LLP proposed to be incorporated, partners’/ designated partners’ details, and consent of the partners/ designated partners to act as partners/ designated partners.
• LLP Agreement- Execution of LLP Agreement is mandatory as per Section 23 of the Act. LLP Agreement registration is compulsory & required to be filed with the registrar in eForm 3 within 30 days of incorporation of LLP in India.

Q. Can an existing partnership firm be converted to LLP?

Ans- Yes, an existing partnership firm can be converted into LLP by complying with the provisions of clause 58 and Schedule II of the LLP Act. Form 17 needs to be filed along with Form 2 for such conversion and incorporation of LLP.

Q. Can an existing company be converted to LLP?

Ans- Yes, any existing private company or existing unlisted public company can be converted into LLP by complying with the Provisions of clause 58 and Schedule III and IV of the LLP Act. Form 18 needs to be filed with the registrar along with Form 2 for such conversion.

Q. Can a listed company be converted to LLP?

Ans- No, only private / unlisted public company can be converted into LLP.

Q. How to check LLP registration number?

Ans- The following are the steps to check LLP registration-

Step 1: Go to “www.mca.gov.in” website

Step 2: Go to “MCA Services”

Step 3: Click “Master Data”

Step 4: Click “View company or LLP master Data”

Step 5: Search “ company or LLP Name”

Q. How to download LLP registration certificate?

Ans- The following are the steps to get LLP certificate-

Step1: Go to “www.mca.gov.in” website

Step 2: Go to “MCA Services”

Step 3: Go to “Document Related Services”

Step 4: Click “Get Certified Copies”

Step 5: Click “LLP” option and fill LLP details

Yes, you can get a discount on the product/service as per the company policy.

Max up to 20%, as allowed from time to time on this product/service.