Limited Liability Partnership (LLP) registration is a popular choice for startups and small businesses, blending the features of a partnership and a private company. One key advantage is that LLPs require no minimum capital, making them accessible to new entrepreneurs. The process starts with selecting the availability of an unique business name, which is checked for availability using the RUN-LLP service on the Ministry of Corporate Affairs (MCA) portal.
To formally register, applicants have to submit a form on the MCA. The form provides the proposed name of LLP, the address of its registered office, and details of partners. Every partner should have either a Director Identification Number (DIN) or Designated Partner Identification Number (DPIN), and a Digital Signature Certificate (DSC) to electronically sign documents. Documents necessary are identification and address proof for partners and proof of the registered office address.
Once the business name is approved, the LLP agreement is prepared to establish roles, duties, and profit-sharing percentages between partners. The agreement is a document of internal governance of the LLP. After verification, the MCA delivers a Certificate of Incorporation officially identifying the LLP as an existing legal entity.
After incorporation, the LLP is required to open a bank account in its name and acquire PAN and TAN for tax purposes. Also, businesses can optionally register an MSME to avail government incentives for small businesses. LLPs provide management flexibility, individual assets, and have lesser compliance requirements compared to a private limited company, and hence are a popular choice for small businesses looking for a scalable, low-compliance setup.
This Act make provisions for the formation and regulation of limited liability partnerships and for matters connected therewith or incidental thereto
Limited Liability Partnership in Company Law
As per Company Law, Limited Liability Partnerships (LLPs) is an unique entity offering limited liability protection to its partners. LLPs have a separate legal status while maintaining operational flexibility akin to partnerships. This framework under the LLP Act, 2008, facilitates streamlined registration and operational processes for businesses in India.