LLP Registration in Delhi

Eligibility for LLP Registration

LLP registration provides a flexible and beneficial business structure with limited liability for partners, making it an attractive option for professionals, small businesses, and startups in India. Eligibility criteria for LLP registration in India are straightforward, ensuring that businesses and professionals meet specific requirements to establish this business structure. Here are the key eligibility points:

Minimum Partners: A minimum of two partners is required to form an LLP. These partners can be individuals or corporate entities.

Designated Partners: At least two designated partners must be individuals, and at least one of them must be a resident of India. Designated partners are responsible for complying with LLP regulations.

Business Activities: LLPs can engage in any lawful business activity except those prohibited by law. Certain sectors may have specific regulations or licensing requirements.

Documents and Compliance: Partners must comply with KYC (Know Your Customer) norms, which include providing identification and address proof documents.

Registration Process: The LLP registration process involves obtaining Digital Signatures Certificates (DSC) for partners, Director Identification Numbers (DIN) for designated partners, and filing the incorporation documents with the Ministry of Corporate Affairs (MCA).

No Minimum Capital Requirement: There is no minimum capital requirement for LLP registration, making it accessible for small businesses and startups.

Residential Status: At least one designated partner must be a resident of India, meaning they have stayed in the country for more than 182 days in the preceding financial year.

Advantages & Disadvantages of LLP Registration

LLP registration offers a balanced approach for businesses seeking limited liability protection with flexibility in management and tax advantages. However, businesses should carefully weigh these advantages and disadvantages against their specific needs and industry requirements before opting for LLP registration. LLP (Limited Liability Partnership) registration in India offers several advantages and disadvantages, which are important for businesses and professionals to consider before opting for this business structure.

Advantages:

• Limited Liability: One of the primary benefits of LLP registration is limited liability protection, where partners are not personally liable for the debts and liabilities of the LLP beyond their agreed contribution.
• Flexibility in Management: LLPs offer flexibility in terms of management structure and decision-making processes, allowing partners to define roles and responsibilities as per their agreement.
• Separate Legal Entity: LLP is a separate legal entity distinct from its partners, which enhances credibility and provides continuity beyond the life of its partners.
• Ease of Compliance: LLPs have fewer compliance requirements compared to companies, making them easier to manage and operate. Annual filing requirements are generally less burdensome.
• Tax Benefits: LLPs are taxed as partnerships, where partners are taxed individually on their share of profits, avoiding double taxation on corporate income.

Disadvantages:

• Limited Capital Contribution: LLPs cannot issue shares or raise equity capital from investors, which may limit their ability to raise funds compared to companies. 
• Perception and Credibility: In some industries, LLPs may be perceived as less credible compared to private limited companies, impacting their ability to attract certain clients or secure contracts.
• Regulatory Changes: LLP regulations may change over time, potentially affecting operational flexibility or compliance requirements.
• Designated Partner Requirements: LLPs require at least two designated partners who must comply with specific regulatory responsibilities, which may be seen as a drawback for some partners.
• Exit and Dissolution: Dissolving an LLP can be complex and may involve legal processes, especially if there are disagreements among partners or creditors involved.

LLP Registration Process

The LLP (Limited Liability Partnership) registration process involves several systematic steps to establish this business entity in India:

Digital Signatures Certificates (DSC):

The first step is to obtain Digital Signatures Certificates (DSC) for all partners who will be signing the incorporation documents electronically. This is necessary as all filings with the Ministry of Corporate Affairs (MCA) are done online and require digital signatures.

Director Identification Number (DIN):

Partners intending to become designated partners in the LLP must apply for Director Identification Numbers (DIN). DIN is a unique identification number assigned to individuals who wish to become directors or partners in companies or LLPs.

Name Reservation:

Choose a unique name for the LLP and check its availability on the MCA portal. The name should comply with naming guidelines and should not infringe on any existing trademarks. Reserve the name using Form 1, along with payment of prescribed fees.

Incorporation Application (Form FiLLiP):

Prepare and file the LLP incorporation application (Form FiLLiP) online through the MCA portal. Include details such as LLP name, registered office address, partners’ details, and proposed business activities. Upload necessary documents, including consent of partners, address proof of registered office, identity proof of partners, and payment of prescribed fees.

LLP Agreement:

Draft an LLP agreement outlining the rights, duties, and responsibilities of partners and operational aspects of the LLP. This agreement must be signed by all partners and notarized.

Submission and Approval:

Submit the incorporation application along with required documents and the LLP agreement to the MCA. Upon verification and approval, the MCA issues a Certificate of Incorporation, confirming the establishment of the LLP.

Post-Incorporation Compliance:

After obtaining the Certificate of Incorporation, comply with post-incorporation formalities such as obtaining PAN (Permanent Account Number), opening bank accounts, and fulfilling any other regulatory requirements.

Annual Compliance:

LLPs must comply with annual filing requirements, including filing of Annual Return (Form 11) and Statement of Accounts (Form 8) with the Registrar of Companies (RoC) each year.

Documents Required for LLP Registration

The documents required for LLP (Limited Liability Partnership) registration in India include:

Identity and Address Proof:

For Partners: Copy of PAN (Permanent Account Number) Card and Passport, Voter’s ID, Aadhaar Card, or Driver’s License.

For Designated Partners: Copy of PAN Card and Passport, Voter’s ID, Aadhaar Card, or Driver’s License.

Residence Proof:

For Partners and Designated Partners: Bank Statement, Electricity Bill, Telephone Bill, or Mobile Bill. The document should not be older than two months.

Registered Office Proof:

Copy of Rental Agreement or Sale Deed of the Registered Office. Along with a No Objection Certificate (NOC) from the Landlord for using the premises as the registered office of the LLP.

Subscription Sheet and LLP Agreement:

Subscription Sheet signed by all partners, indicating their intention to form the LLP and become partners.

LLP Agreement outlining the rights, duties, and responsibilities of partners and operational aspects of the LLP. This document must be notarized.

Digital Signature Certificates (DSC):

DSCs for all partners and designated partners who will sign the incorporation documents electronically. DSCs are required for online filing with the Ministry of Corporate Affairs (MCA).

Director Identification Number (DIN):

DIN for partners who will act as designated partners in the LLP. DIN is obtained by filing Form DIR-3 with the MCA.

Payment Receipts:

Payment receipts for fees paid towards LLP registration, name reservation, DIN application (if applicable), and stamp duty (for LLP agreement, if applicable).

Time Required for LLP Registration

The average time it takes to register a Limited Liability Partnership (LLP) in Delhi is 15-20 working days, but the registration time may vary, in subject to the submission of documents by the applicant.

LLP Registration Cost

The total cost of registering a Limited Liability Partnership (LLP) in Delhi, including government and professional fees, can range from ₹5,990 to ₹29,999.