Ultimate Guide on How to Register an LLP in India? And LLP Registration Procedure in India

Introduction

Starting an LLP in India is a smart choice for entrepreneurs seeking a flexible and cost effective business structure. It provides limited liability while allowing partners to manage operations efficiently. This guide simplifies the LLP registration process, covering key steps like obtaining a Digital Signature Certificate (DSC) and filing the LLP Agreement, ensuring a smooth  registration.

What is LLP?

A Limited Liability Partnership (LLP) is a business structure that blends features of a partnership and a company. It offers partners limited liability, like company shareholders, while maintaining the flexibility of a partnership. An LLP has its own legal identity, allowing it to own assets, sign contracts, and face legal action separately from its partners. It requires at least two partners, with no maximum limit, and ensures that each partner’s liability is limited.

How to register an LLP in India?

Obtain DSC and DIN

Before you begin the registration process, you have to apply for DSC (Digital Signature Certificate) and DIN (Director Identification Number). This is important to obtain as all the documents for LLP registration will be filed online and are required to sign digitally. Designated partners must obtain their DSC and DIN certificates. Moreover, a company, OPC, or association of persons cannot be a designated partner; only natural persons can hold this role.

Reserve name for LLP

To reserve an LLP name, file the RUN-LLP form with the Central Registration Centre. Use the MCA portal’s free name search tool beforehand to check for similar names. The name must be unique and follow government rules. If rejected, you can resubmit within 15 days. You can propose two names, and once approved, complete the LLP registration within three months.

LLP incorporation

To register an LLP in India, you must submit the FiLLiP form to the Registrar of Companies (ROC) in the state where the LLP’s office will be. This form covers all incorporation requirements, and the required fees must be paid during submission.

If a designated partner doesn’t have a DPIN or DIN, they can apply for it in the same form, but only two people can request DPIN in one application. The FiLLiP form also lets you reserve an LLP name, which becomes official once approved.

File an LLP agreement

The LLP agreement defines the rights and responsibilities of partners and outlines the relationship between the LLP and its partners. You must submit this agreement online through Form 3 on the MCA portal. File it within 30 days from the date of LLP incorporation. Additionally, print the LLP agreement on Stamp Paper, as the stamp duty amount varies by state.

Obtain LLP Incorporation Certificate

After completing and verifying the LLP registration Process, the ROC issues the certificate of incorporation, which serves as proof of the LLP’s legal existence in India. After getting an LLP incorporation certificate, You can operate business operations legally.