LLP Registration In Delhi- Documents Required
What is LLP Registration
LLP Registration In Delhi is a type of partnership firm which is mostly preferred by the entrepreneur. It is the easiest form of business structure with the benefit of limited liability. LLP registration gives freedom to partners to form a partnership structure where the liability of each partner is limited to the amount they contribute to the business. Limited liability partnership firm registration means that if the partnership fails, creditors cannot ask for the partner’s personal property or income.
What is a Limited Liability Partnership Firm?
LLP Registration is a type of business structure that offers extra benefits in comparison to the partnership firm. It provides limited liability to its partners at very nominal compliance costs. Moreover, the Partners of the firm can organize their internal structure like a partnership firm.
In short, LLP is a separate legal entity from its member that has the power to extend all its assets keeping the liabilities of partners limited. Hence, an LLP Registration In Delhi is a hybrid of a company and a partnership firm.
Benefits of LLP Registration
- Enjoys The Status Of Corporate Bodies : As per Section 3 of the Limited Liability Partnership Act, 2008, under LLP registration a firm is a corporate body that has come into force with effect from April 1, 2009. The Indian Partnership Act 1932 does not apply to LLP.
- Perpetual Succession : A Limited Liability Partnership firm has the benefit of perpetual succession and can continue its existence even after the retirement, death, insanity of one or more respective partners in the firm.
- Shares Limited Liability : The most important feature of LLP is limited liability that all its partners should entertain which means their assets are safe and won’t be used to pay the losses or debt of the firm. Apart from it, innocent partners of a Limited Liability Partnership firm are not liable to pay for the wrong deeds done by some other partner.
- Fewer Credentials Are Required : A person can start an LLP firm with just two partners out of which one should be an Indian resident. The designated partners of a limited liability partnership firm can either be an individual or a corporate body. Moreover, there is no specific capital requirement to incorporate a limited liability partnership firm registration.
- Quicker Decision Making Process : An agreement is printed on stamp paper and signed by all the partners that define their roles and duties in the firm. It helps them in the decision-making process.
Easy Online Registration And E-Filling
MCA has simplified LLP registration and made it an easy online procedure. The forms and the documents are filed electronically on the official MCA portal. A designated partner of a limited liability partnership firm has to obtain DSC to sign these documents and forms.
- Easy Conversion : If a public or private company or a partnership firm decides to emerge as a limited liability partnership, they can easily convert as per the provisions of the applicable act.
- Efficient Business Management : The business is managed by the respective partners as per their roles and duties. The designated partners of the firm are responsible for the legal compliances.
- Profit-Sharing Business : Profit is equally shared amongst all the partners of a limited liability partnership firm. An LLP registration cannot be incorporated for a charitable purpose. Its purpose is to carry on business activities to earn profit.
Documents Required for LLP Registration In Delhi
Here is a list of documents required for registration :
Documents Of Partners :
- ID Proof/PAN Card of the Partners
- Residential Proof of the partners
- Copies of Passport size Photograph
- Passport (in case of Foreign Nationals/ NRIs)
Documents Of LLP :
- Copies of the Proof of Registered Office
- DSC-Digital Signature Certificate
Documents of Partners
- ID Proof/PAN Card/ Of Partners : All the partners of the firm are needed to provide their PAN card at the time of registering Limited Liability Partnership.
- Residential Proof Of Partners : Partner must submit anyone out of Passport, Driver’s license, Voter’s ID, or Aadhar Card. Moreover, the name & other details as per address proof & PAN card must be the same.
- Photograph : Partners should also provide their passport size photograph, preferably on white background.
- Passport (In Case Of NRIs/Foreign Nationals) : Foreign nationals & NRIs have to submit their passport mandatorily for becoming a partner in Indian Limited Liability Partnership. Passport has to be duly notarized by the concerned authorities in the country of such foreign nationals & NRI, in addition, the Indian Embassy placed in that country can also authorize the documents. They have to submit proof of address also which will be a bank statement, driving license, residence card/any government-issued identity proof including the address.
Documents of LLP Registration
- Proof Of Registered Office Address : Proof of registered office must be submitted during the LLP registration within 30 days of its incorporation. If the designated registered office is taken on rent, in that case, the rent agreement and a NOC- no objection certificate from the landlord must be submitted.
No objection certificate will act as the consent of the landlord to give permit the LLP to use the place as a ‘registered office’ and operate its business.
In addition, anyone document out of utility bills like electricity, gas, or telephone bill must be submitted along with the application. Those bills must contain the complete address of the located premise and owner’s name & the document shouldn’t be older than the past 2 months.
- Digital Signature Certificate : One of the designated partners of the LLP needs to opt for a DSC (digital signature certificate) as all documents & applications will be digitally signed by the concerned signatory.
FAQ- Frequently Asked Question
What is the eligibility of designated partners/partners in an LLP?
Any individual, or even a company or an LLP, can become a partner. However, only an individual can become a ‘designated partner’ in an LLP.
I am an NRI. Can I start an LLP business in India?
Yes, non-resident Indians and foreign nationals who are willing to enter into an LLP partnership can do so, provided they submit the necessary documents after getting them notarized by the concerned authorities. Although, at least one of the designated partners in an LLP should be an Indian national.
What is an LLP agreement?
An LLP agreement is made between the partners and the LLP regarding the relationship between the individual partners in the LLP. An LLP agreement usually consists of management policies, the inclusion of new partners, policy-making strategies, and so on.
What is the minimum number of partners required to start LLP?
According to the LLP Act, a minimum of two designated partners are required to start an LLP. The designated partners are responsible for fulfilling all the essential requirements involved in starting and running an LLP.
What kind of start-ups commonly register LLPs?
Typically, only start-ups that will not be looking for venture capital funding register LLPs. This is because venture capitalists only invest in private and public limited companies.
Is it cheaper to run an LLP than a private limited company?
Yes, it is much cheaper to run an LLP than a private limited company, particularly in your early startup days. This is because many compliances, such as an audit, apply to LLPs only after their turnover is sizable. Most LLPs spend about half as much as a private limited company in their first year on registrations and compliance work.
If you want to get started with LLP Registration, reach out to Chartered Accountants from CA in Delhi‘s homepage