Minimum Requirements For LLP Registration In India
This article aims to provide knowledge pertaining to the legal minimum requirements for LLP Registration in India. Additionally, you will get to know about the step by step information of the LLP Registration process and the documents you will require for the same.
With more internet adoption among the masses, there has been an exponential rise in Indian small and medium businesses. Catering to the new-age digital consumers with their products and services, these modern Indian businesses try to keep up with the legal side of the business as well.
But as Indians emphasize having government jobs, they have less or no knowledge of the legal side of the business ecosystem. And because of this, Indian entrepreneurs in the initial stages majorly face issues in the legal side of business like certificates, registrations and compliances.
Minimum requirements for LLP Registration In India
Step 1: Apply and obtain a Digital Signature Certificate (DSC)
As all the documents for LLP Registration in India are filed online, they are required to be digitally signed. That is why a Digital Signature Certificate is required to validate and certify the identity of the person holding this certificate.
The DSC contains useful information of the user, i.e. name, pin code, country, email address, date of issuance of the certificate and name of the certifying authority.
Hence, the designated partners must obtain their digital signature certificates from certifying agencies that are government recognized.
Step 2: Apply for Director Identification Number (DIN)
Director Identification Number is an 8-digit unique identification number, allotted by the Central Government, given to any person planning to be a director or an existing director of a company.
Having a lifetime validity, DIN is required by designated partners or those intending to be designated partners of the proposed LLP Registration in India.
To apply for the DIN, the application has to be made in Form DIR-3.
Documents required to apply for DIN
- Scanned copy of documents (generally Aadhaar and PAN)
- The form shall be signed by a Company Secretary in full-time employment of the company or by the Managing Director/Director/CEO/CFO of the existing company in which the applicant is working to be appointed as a director.
Or Apply for the DPIN (Designated Partner Identification Number, Form 7 is required)
DPIN is required by a person who wishes to register an LLP or become a Designated Partner of an existing LLP.
Additionally, all designated partners of the proposed LLP shall obtain a Designated Partner Identification Number (DPIN).[Note: If you already have a Director Identification Number (DIN), it can be used as a DPIN.]
Step 3: Approval of Company Name (requires Form 1/ RUN-LLP)
Before getting approval of the company name, LLP-RUN (Limited Liability Partnership-Reserve Unique Name) is filed for the reservation of the name of the proposed LLP. Additionally, the name shall be processed by the Central Registration Centre under Non-STP.
Before you decide to quote the company’s name in the form, it is advised that you use the free name search facility on the MCA portal.
Based on the search criteria filled up on the free name search facility, the system will provide the list of approximately relating names of existing companies/LLPs.
The names that will come up after the search will help you in choosing names that are not similar to already existing companies. Only that company name will be approved that is not undesirable in the opinion of the Central Government and does not resemble any existing LLP or any partnership firm or a body corporate or a trademark.
Step 4: Incorporation of Company As An LLP (requires Form 2/FiLLiP)
The next step in LLP registration is the filing of the FiLLiP (Form for incorporation of Limited Liability Partnership) form. FiLLiP is an integrated form that shall be filed with the Registrar having jurisdiction over the state in which the registered office of the LLP is situated.
Additionally, if the applied company name is approved, then the approved and reserved name shall be filled as the proposed name of the LLP.
Step 5: Filing Of LLP Agreement (requires Form 3)
It is a written agreement between the partners of the LLP or sometimes between the LLP and its designated partners. This agreement establishes the rights and duties of the designated partners toward each other and the LLP.
- The agreement must be filed in form 3 online on MCA Portal.
- LLP agreement has to be filed within 30 days of the date of incorporation.
Documents Required For LLP Registration
- PAN Card/ ID Proof of the Partners
PAN card acts as primary ID proof, and all the partners are required to provide their PAN at the time of registering LLP.
- Address Proof of the partners
Voter ID, Passport, Driving license or Aadhar Card are the documents that can be used as address proof. Make sure that name and other details on the submitted documents should be the same. Issues pertaining to variation in the spelling of own name or father’s name or date of birth in submitted documents should be corrected before submitting to RoC.
- Proof of Registered Office Address
During registration or within 30 days of its incorporation, proof of registered office has to be submitted.
In case the registered office is taken on rent, a rent agreement and a no-objection certificate having the consent of the landowner to allow the LLP Registration to use the place as a registered office has to be submitted.
Documents like electricity bill, gas or telephone bill, containing the complete address of the premise and owner’s name, must be submitted.
Make sure the submitted bills shouldn’t be older than two months.
- Residence Proof of Partners
Documents like telephone bill, mobile bill, latest bank statement, electricity bill or gas bill should be submitted as residence proof. Note that submitted documents shouldn’t be more than 2-3 months old. Additionally, they must contain the name of the partner as mentioned in the PAN card.
Passport size photograph should be provided by the partners (white background preferred).
- Digital Signature Certificate
The designated partners must obtain their digital signature certificates from government recognized certifying agencies as all documents and applications will be digitally signed by the authorized signatory.
- Passport (in case of Foreign Nationals/ NRIs)
In the case of foreign nationals and NRIs, they have to submit their passport compulsorily.
Additionally, the passport has to be notarized or apostilled by the relevant authorities in the country of such foreign nationals and NRI. Indian Embassy situated in that country can also sign the documents.
They also have to submit proof of address, i.e. their bank statement, driving license, residence card or any government-issued identity proof containing the address.
Note: If the submitted documents are not in the English language, a notarized or apostilled translation copy will also be attached.
The process of registering a business is intricate, and it is advisable to consult a professional for any legal business exercise. TheStartupLab, with its team of experienced dedicated professionals, offers services to set up a company, register a company, compliance services, funding formalities, Virtual CFO Services, etc.
Contact us to set up your business legally and get your business documents completed on time and without any hassle.