Limited Liability Partnership Registration

What is LLP Company

As the name suggests this type of partnership has limited liability on all partners and flexibility in partnership. In limited liability partnership each partner is responsible for their own misconduct. The limited liability partnership can continue its business irrespective of the changing status of partners and hold different properties in its own name. This partnership is a distinct legal body and is accountable for its assets but the liability of the partners are limited to the agreed amount. Further each partner is liable for its own negligence. The agreement is constructed for the mutual rights shared and duties of the partners within a LLP. Minimum 2 partners are required in LLP and there is no limit on the maximum number of partners.

Merits of LLP Company Registration

• No requirement of minimum capitalThere is no boundation on the amount to be invested as capital which could be in any form be it tangible assets like land, machinery or any other intangible form.
• Easy set upThe limited liability partnership company is easy to build as it requires minimal formalities compared to any other private limited company. Agreements for the registration of limited liability partnership are customized according to the needs, responsibilities of the partners concerned. This benefit allows more flexibility to the partners in the enterprise.
• Registration cost is less The value for the registration of LLP and cost of the compliances is less compared to other companies. This benefit makes it cost-effective to maintain the enterprise which inturn brings continuity in the business.

Process of Registration of a LLP Company

• STEP 1: DSC (Digital Signature Certificate)The first step for registering an LLP is the procurement of DSC (Digital Signature Certificate) which is a secure digital key containing the user's name, pincode, country, email address, name of the certifying authority. This is mandatory for all the partners in the limited liability company. For the application of DSC every partner of an LLP has to show their PAN card, identity proof,passport size photo and address proof. These documents are filled online.
• STEP 2: Application of Director Identification Number This is the second step for the registration of limited liability partnership (LLP). After the formation of a digital signature certificate, the DIN number of the designated partners are registered. DIN stands for Director Identification Number which is a unique 8 digit number required for any present or future director of a company. The address on the adhaar card and bank account should be the same for the registration of the DIN number.
• STEP 3: Name approval applicationThis is the third step which includes searching for names available for the enterprise. The authority checks if the name under which you want to register is available and later reserves it for the enterprise. Usual site for checking the availability of names is the MCA portal. The approval of the name is in the hands of the registrar and the central government. The names that hold resemblance to other partnership firms will not get an approval from the registrar.
• STEP 4: Incorporation of LLP This is the fourth step for the registration of LLP in which one has to fill an application form for the fourth step. You have to fill the basic information in this form for example SRN (Service Request Number) of the approved name, name of the category your business falls under,etc. The amount of the registration fees depend upon the capital invested by the company such as for capital upto 1lakh the registration fees is Rs 500.
• STEP 5: file LLP agreement This is the fifth and last step for the registration of LLP. After receiving the certificate of LLP registration, the company has to fill and deposit the LLP agreement within 30 days. This agreement deals with the profit and loss ratios of different partners and their responsibilities for the company. This agreement has to prepared on stamp paper and an amount of stamp duty has to be paid to the designated authority. Stamp duty is different in all states for example Rs 100 in north east states, Jammu Kashmir and Himachal Pradesh.