(NOC from the owner,Utility Bills,Rental Agreement/Registry Proof/House Tax Receipt)
Minimum Requirements for limited liability Partnership(LLP) Registration
Minimum 2 Partners
No Capital Requirement
At least one Designated Partner as Indian Resident
DPIN for all Partners
Limited Liability Partnership (LLP) Deliverables
Issue of Certificate of Incorporation
Issue of LLP Agreement
Issue of PAN and TAN
PROCESS TO BE FOLLOWED FOR LIMITED LIABILITY PARTNERSHIP REGISTRATION
One needs to follow these steps to start an LLP in India.
Apply for DIN and DPIN All the partners in an LLP need to procure the Digital Identification Number (DIN), or the Digital Partner Identification Number (DPIN) through the DIR-3 Form.
Obtaining Digital Signature Certificate (DSC)
It is a must for all partners to register and acquire Digital Signature Certificate (DSC) for the purpose of LLP registration. The same will be issued by a licensed Certifying Authority (CA).
New User Registration
To make use of any paid services or file eForms for the purpose of LLP registration, it is mandatory to register in the portal as a user in the relevant user category.
Limited Liability Partnership Registration
The first and the foremost thing are to get the name approved for LLP registration in the portal. Once the name is approved, the registration form has to be submitted. When the form is approved by the concerned official of the Ministry, one will receive an email regarding the status of the form which will get changed to Approved.
Filing of LLP Agreement
An initial agreement has to be filed within 30 days of incorporation of an LLP.
A LLP is a legal entity and a juristic person established under the Act. The partners are distinct from the entity and both can sue each other and get sued in the process.
A LLP has ‘perpetual succession’, that is continued existence until it is brought on the terms of the dissolution by mutual agreement within the partners. Partners may come and go, but an LLP goes on.
Audit not Required
Entrepreneurs earning a turnover of less than 40 Lakhs and capital contribution of less than 25 Lakh need not get their accounts audited .Therefore, LLPs are ideal for startups and small businesses that are just starting their operations and want to have minimal regulatory compliance related formalities.
The ownership of a LLP can be easily transferred to another person. All you need is to induct them as a Designated Partner of the LLP. LLP is a separate legal entity separate from its Managing Partners, so by changing the Managing Partners, the ownership of the LLP can be changed.
An LLP being a juristic person, can acquire, own and enjoy property in its own name. And this is entirely distinct from its partners. No Partner can make any claim upon the property of the LLP so long as the LLP is a going concern.
The biggest advantage is Limited Liability, which means the status of being legally responsible only to a limited amount for debts of a LLP. Unlike proprietorships and partnerships, in a LLP the liability of the members in respect of the LLP’s debts is limited. The personal assets of the directors are safe if the company goes bankrupt.
Once an LLP is registered, it will be active and in existence as long the compliances are met regularly. If in case, the compliances are not met then the LLP will become dormant and its name will be struck off from the register over a period of time.