The LLP form of organization was introduced in India by the Limited Liability Partnership Act, 2008. A Limited Liability Partnership (LLP) is an incorporated business form that combines the features of a partnership and the company form of businesses.
LLP is a body corporate with all the features of a limited company. This is a new business organization structure in India with all the features of an LLC in the US and an LLP in the UK. This is an ideal organization for business.
In an LLP, a partner is not responsible or liable for another partner’s misconduct or negligence. Instead, all partners have limited liability, limited to their own acts of commission or omission, similar to shareholders’ liabilities in a limited company.
LLP registration is administered by the Ministry of Corporate Affairs (MCA), Government of India, through the office of the Registrar of Companies (ROC). The incorporation/registration process is fully electronic, i.e. applications and documents are filed online and the ROC issues a digitally signed Certificate of Incorporation (COI).
An LLP should have a minimum of two ‘Designated’ partners who are individuals and at least one of them should be resident in India. Where a corporate body is one of the LLP partners, it should nominate an individual as a Designated Partner. Designated partner of an LLP shall be responsible for all acts and things that are required to be carried out by the LLP in respect of compliance of the provisions and filing of documents/returns/statements under the LLP Act as well as things specified in the LLP agreement.
- Minimum 2 Partners
- Atleast 1 of the designated partners shall be an Indian Resident
- If a body corporate is a partner, it has to nominate a natural person as its nominee
- The Partners and Designated Partners can be same person or can be different persons.
- There is no concept of share capital, but there has to be some sort of contribution from each partner
- DIN (Director Identification Number) for all the Designated Partners
- DSC (Digital Signature Certificate) for all the Designated Partners
Steps to register LLP
Provide Basic Documents of Directors
Apply for DSC (Digital Signature)
Envizi will prepare Legal Documents
Envizi will file documents with ROC
Get Certificate of Incorporation