In India, the concept of Limited Liability Partnership was introduced in 2008 by the LLP Act, 2008. In India, LLP has become the most preferred form of business among entrepreneurs. Registering an LLP in India has both the limited liability features of a Private Company and the flexibility of a Partnership Firm. No partner is answerable on account of unauthorized or illegal actions of other partners, thus individual partners are protected from joint liability created by another partner’s wrongdoing. LLP is generally preferred by professionals and micro and small businesses that are family-owned or closely held. In 2022, the MCA (Ministry of Corporate Affairs) introduced LLP (Second Amendment) Rules, 2022 and it has made the procedure of LLP Registration even easier & transparent as now all the LLP Forms will be digital-based. Also, with the LLP (Second Amendment) Rules, 2022, Limited Liability Partnerships shall be allotted their TAN & PAN along with the Certificate of Incorporation itself.
What is a “Limited Liability Partnership” or “LLP”?
LLP or Limited Liability Partnership has become a popular form of organization among entrepreneurs in India. A Limited Liability Partnership gives the benefits of a Company & a Partnership Firm. An LLP in India is a Partnership Firm established by at least 2 Partners who enter into an LLP Agreement. However, the LLP Partner have limited liability and the LLP has perpetual succession just like a Company.
What are the Different Types of LLP Forms in India?
Following is the list of all types of LLP Forms in India:
1. FiLLiP Form: This form is used for the incorporation of LLP in India.
2. Run LLP: This form is used for reserving a name for the LLP.
3. Form 3: Details regarding LLP Agreement.
4. Form 8: Statement of Account & Solvency.
5. Form 11: Annual Return of LLP.
6. Form 24: This is the application to the ROC for striking off the name of LLP.
What are the vital documents required for LLP Registration in India?
Following is the step-by-step procedure for LLP Registration in India
1: PAN Card or Identity Proof of all the Partners
All the designated Partners are required to provide their PAN and it acts as a primary identity proof.
2: Address Proof of Partners
For the address proof, Partners can submit any one document out of a Passport, Aadhar Card, Voter’s ID, or Driving License. Name & other information as per address proof & PAN Card should be the same. If the spelling of one’s name or father’s name or DoB is different in PAN Card & address proof, it should be corrected before submitting to the Registrar of Companies.
3: Partners Residence Proof
The latest telephone bill, electricity bill, bank statement, or gas bill should be submitted as residence proof. Note: Such bills should not be more than 2–3 months old & must contain the Partner’s Name as mentioned in the PAN Card.\
4: Passport sized-photos
Partners should also provide their latest passport-size photos.
5: Passport
To become a Partner in a Limited Liability Partnership, NRIs & Foreign Nationals have to submit their passport mandatorily. A passport has to be notarized by the concerned authorities in the country of such NRI & Foreign Nationals, else the Indian Embassy located in that country can also sign the documents.
