LLP is also known as a partnership where the liability of the owners or shareholders is limited. LLP is short for a Limited Liability Partnership. In an LLP, suppose a legal case arises, in such a situation, the shareholders or the other partners reserve the right to be sued and to sue. That’s why it is known as a Limited Liability Partnership. To know more about LLP Firm registration in India, read below.
LLP Firm Registration
In India, the registration of an LLP is managed and regulated by the Limited Liability Partnership Act, 2008. Limited Liability Partnership introduced to help manage the business with ease. It also limits the liability of shareholders or the owners of the partnership.
LLP over Partnership
An LLP first bought up in 2010. Post its introduction it has more than one lakh registration of a Limited Liability Partnership. An LLP is better if compared to a partnership. It is because an LLP requires less investment for formation as compared to a partnership.
An LLP in India limits the liability of an owner. It means it used only for a small loss or harm done by them instead of the whole damage done by the partnership owners. It also lets the shareholders sue the other members.
An LLP Firm Registration India a separate entity from a partnership. It means that if a partner commits a wrong, then the other one is not liable for the illegal performed by the wrongdoer.
LLP Registration Eligibility
If you have a business that meets these eligibility requirements, you can register your firm as an LLP:
- There shall be a minimum of two partners to form an LLP. However, there is no limit on the maximum number of partners the firm can have.
- Out of both the two partners, at least one shall be a designated partner who is a resident of India.
- DPIN for all partners of the business.
- DSC for the designated partner.
- At the initial stage, it is not necessary to share the number of funds for the business. However, the shareholders or owners of the business shall have mutually agreed upon paying such amount for the firm.
- The funds mentioned above shall not be less than Rs 1 lakh.
- Address proof of LLP.
Documents Needed For LLP Firm Registration
You must have the following documents for registering your firm under for an LLP: For partners of the firm,
- Aadhar Card/Voter’s Id card
- PAN card/Passport if you are not a resident of India
- Passport Size Photographs along with your signature
- Bank Statement
- Partners are required to attest a copy of Aadhar Card and PAN Card, along with a copy of the Bank Statement.
- LLP Registration fees depend on the firm you get registered.
How To Do LLP Firm Registration
You can follow these steps and register your form as an LLP:
- In the first step, you need to obtain a Digital Signature. The application process of filing all the documents for recording an LLP and everything is to perform digitally. So getting a DSC is a must. Also, know about Private Limited Company Registration, GST Registration, Labour License Registration, and Trademark Registration details here.
The organizations that assign or certify digital signature mentioned here. One of the partners of the company shall before its LLP registration, obtain its all designated partners’ DSC. It received from a government certifying agency. While getting the digital Signature certificate, please make sure that you are obtaining either a class 2 or a class 3 category DSC.
- In the next step, you need to fill up a DIR-3 form for obtaining a DIN of all the designated partners. Click here to download a DIR-3 form. Fill up all the asked details and club together all the required documents. After filling up the way, the form has to sign by a full time working Company Secretary.
- Now you need to file the official name for your LLP that is LLP Registration name check. You can select a unique name for your LLP by searching the other reserved names for LLP Firm Registration process. You can check if your name is unique and not previously used by clicking here. After selecting the final name for your company, you need to fill up an LLP-RUN (Reserve Unique Name) form. The registrar passes your LLP Firm Registration form only if it meets the guidelines of the Central Government. Also, if the registrar finds that your LLP’s name similar to an existing firm, your LLP Firm application gets rejected. However, you can resubmit your form after rejection within 15 days. Also, there is an option for suggesting two names in one go for LLP.
LLP Registration Name
- In the next step, a registrar who has jurisdiction over your proposed area of partnership has to fill up a form. The name of the form is FiLLiP. Through this form, the applicant can request the reservation of LLP Firm name and allotment of DIN if the designated partner of the company doesn’t have a DIN. In case your name is approved, and you have given two names for the LLP Registration form, then both the names recorded for the suggestion of the LLP’s name.
- In the last step, you need to fill a Form-3. One can get the form by clicking here. This Form-3 protects your firm’s right, rules, and regulations. It lays down all the duties framed by the director of the company, and the partners of the company shall follow the same. Please note that the Form-3 must file within 30 days from the date of filing up the FiLLiP.
Essential Points To Get LLP Firm Name
Please remember to take a note of a few things as mentioned below before you finalize the last name of your LLP or before incorporating your LLP:
- The name of your partnership firm must be unique.
- Please note that your name doesn’t contain any abbreviations or adjectives. Such names get rejected and filling again takes time.
- The trademark of your firm shall be different from any existing company.
Benefits of LLP Registration 2020
Once you register your firm as an LLP, you get these LLP Registration benefits:
- An LLP is an individual entity, not a shared one as a partnership firm.
- There are no limitations for minimum capital investment for an individual.
- The documentation required in filing an LLP is lesser as compared to a partnership firm. Also, the process for LLP Firm Registration is less time taking and less exhaustive than a partnership.
- The possession of an LLP can quickly transfer to another person.
- The cost of registering an LLP is less.
We above gave all the details about the LLP Firm Registration and how to get LLP done. For more other information, check Timesalert.