New procedures have been introduced by the MCA for LLP registration, which includes the FiLLiP (Form for Incorporation of Limited Liability Partnership) form that must be filed with the CRC of the MCA that has jurisdiction across India for LLP registration. Each state used to register LLPs under its authority previously.
The FiLLiP program includes:
- A request for DPIN allocation;
- Reserving the name of the Limited Liability Partnership;
- Other required documents must be filed.
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Features & Benefits of Limited Liability Partnership (LLP) Registration
In the service sector, LLPs have a number of advantages and features that make them an increasingly popular form of business. Since 2008, when the concept of LLP was introduced in India, we have seen big corporations turn to LLPs. SMEs, however, find LLPs to be very suitable because they save money on compliance costs.
When an LLP Company registration is registered, the liabilities of the individuals who invest money in the business (also known as partners) are limited to the amount they have invested, which means the partners’ personal property will remain secure. In normal partnership firms, this feature is not available. Having a limited liability business entity registered with the Ministry of Corporate Affairs builds confidence in young entrepreneurs.
Entity distinct from the corporation
By keeping yourself and the LLP separate, LLP allows you to maintain both identities at length. According to the law, LLPs and their Representatives are separate entities, so LLPs can sue and be sued in their own name without the name of their designated partners.
Succession without interruption
If either the Partners or the ROC decides to close the LLP, it will continue to exist. This is what makes the registered LLP different from partnership firms were on the death of partners, the partnership firm ceases to exist. However, if the registered LLP is registered, even the death of all its partners/designated partners will not affect its existence.
Transferability and easy exit
When all or some of the partners of an LLP decide to leave, they can do so by simply transferring their contributions. It is also very easy to change management during the life of an LLP. Partners are free to decide whether or not to continue at any time based on this information.
Investing in real estate
As a legal entity, LLPs can own property on their own through their Legal Representatives, including Intellectual Property (IPR) such as trademarks, copyright, patents, and designs. As with a natural person, an LLP may also mortgage property to a bank or other financial institution in the same manner.
The documents required for the registration of a limited liability partnership
It is necessary to prepare a certain set of documents to begin the registration procedure for your start-up as a limited liability company (LLP) under the supervision of the Central Registration Centre (CRC). MCA regulates LLPs under the LLP Act, 2008, as well as the Registrar of Companies in the state where the LLP has its registered office address.
A majority of the documents filed with the Department are drafted by us for your convenience. Here is a list of documents you must provide:
1. Identification proof
In the case of Indian nationals, the identity proof needs to be a copy of the PAN card, and a copy of the passport apostilled or notarized for foreign nationals. All documents must be self-attested as well.
2. Providing proof of address
A driving license, passport, or voter ID is required to prove address, while a bank statement, electricity bill, mobile bill, or telephone bill is required to prove the address for partners or designated partners.
3. Details of contact
All partners/designated partners must have their own mobile number and email address, not those of any professional or close family members. Additionally, one LLP email address is required.
4. The educational qualification
The proposed designated partners’ educational qualifications should be provided. It is not necessary to provide proof. The CRC does not ask for copies of proof of educational qualifications.
5. The registered office of the company
It is also necessary to provide a recent copy of a utility bill, gas bill, mobile or telephone bill, and an agreement or lease/sale deed from the landlord with his/her consent to use the building for registered offices.
6.Draft FiLLiP+ documents
Finally, based on the above documents provided, we prepare the draft documents in accordance with the LLP Act, 2008 and its applicable laws which must be submitted to CRC (MCA). CCL’s experience makes LLP Registration very easy and simple. No need to visit any location and the procedure can be completed from the comfort of your home, as it is completely online.
Frequently Asked Questions
Does an LLP have to have a minimum number of members?
A minimum of two persons are required to form an LLP. It is not important that partners should be different from designated partners in an LLP. In an LLP, two persons can act as both partners and designated partners at the same time. As part of most initial LLPs, both partners and designated partners may be the same individual, which means an individual can become both a partner and a designated partner.
How much capital does an LLP need to operate?
It is up to startups to decide how much capital they wish to keep during LLP registration. However, most registered LLPs keep a minimum amount of capital of $10,000.
Choosing an LLP name and reserving it?
The process of reserving a name for your LLP is quite simple and straightforward, and our professionals will guide you in making the best choice according to the requirements for LLP incorporation and trademark law.
What is the Designated Partner Identification Number, and who can become one?
DPINs are unique identification numbers assigned by the MCA to individuals allowing them to become designated partners or directors in any limited liability company. After obtaining DPINs/DINs, anyone over the age of 18 can become a designated partner/director. There are no specific rules regarding citizenship or residency, so even foreign nationals can become designated partners.