If you’re starting a business with a partner, registering it as a Limited Liability Partnership (LLP) could be the perfect choice. LLPs combine the flexibility of a partnership with the advantages of limited liability, making them a popular option for startups and small businesses.
Here’s a simplified, step-by-step guide to help you register an LLP in India.
What Is an LLP?
An LLP is a legal business structure that:
- Limits the liability of its partners.
- Allows partners to manage the business directly.
- Provides a separate legal identity, just like a company.
Why Register as an LLP?
Some of the key benefits of registering as an LLP include:
✅ Limited liability protection for partners.
✅ Low compliance requirements compared to companies.
✅ No maximum limit on the number of partners.
✅ Tax advantages, especially for small businesses.
Step-by-Step LLP Registration Process
Step 1: Obtain Digital Signature Certificates (DSC)
Digital signatures are needed for all designated partners to sign forms online.
👉 How to get it? Apply through a government-authorized certifying agency.
💡 Tip: Ensure that your DSC is valid and in Class 3 format, which is mandatory for LLP registration.
Step 2: Apply for Designated Partner Identification Number (DPIN)
A DPIN is a unique identification number for the designated partners of an LLP.
👉 How to get it? File the FiLLiP (Form for Incorporation of LLP) on the MCA portal.
Step 3: Reserve a Unique Name for Your LLP
Your LLP name is your identity, so choose wisely!
- Use the RUN-LLP (Reserve Unique Name) service on the MCA portal.
- Ensure your name follows MCA naming guidelines and isn’t similar to existing LLPs or trademarks.
💡 Pro Tip: Check the availability of the name online before applying to avoid rejection.
Step 4: Draft the LLP Agreement
The LLP Agreement outlines the partnership terms, including roles, responsibilities, and profit-sharing ratios.
Key details to include:
- Name and registered address of the LLP.
- Names of partners and designated partners.
- Contribution of each partner.
- Profit-sharing ratios.
Step 5: File the Incorporation Application
File the FiLLiP Form (Form for Incorporation of LLP) with the MCA. Attach the following:
- Digital signatures of designated partners.
- Proof of registered office (rent agreement, utility bill).
- Identity and address proofs of all partners (PAN, Aadhaar, Passport, etc.).
Step 6: Pay the Registration Fees
The registration fee varies based on the contribution amount in the LLP Agreement. Pay the applicable fees online through the MCA portal.
Step 7: Receive Your Certificate of Incorporation
🎉 Once approved, the Registrar of Companies (RoC) will issue the Certificate of Incorporation. This includes your LLP Identification Number (LLPIN), confirming your LLP’s legal status.
Post-Incorporation Steps
- Execute the LLP Agreement:
File the LLP Agreement within 30 days of incorporation using Form 3 on the MCA portal. - Open a Bank Account:
Use your Certificate of Incorporation and LLP Agreement to open a bank account in the LLP’s name. - GST and Other Registrations:
Depending on your business activity, you may need GST, TDS, or other statutory registrations.
LLP vs. Private Limited Company: Which One to Choose?
If you’re still unsure whether an LLP is right for you, here’s a quick comparison:
- LLP: Best for professionals and small businesses. Lower compliance and costs.
- Private Limited Company: Better for businesses seeking investors or planning to scale.
Why Choose Us for LLP Registration?
At Ganesh K Choudhary & Co, we’ve helped countless entrepreneurs set up their LLPs effortlessly. From name reservation to post-registration compliance, we handle it all so you can focus on growing your business.
📞 Contact us today and take the first step toward your entrepreneurial journey!