An overview of LLP Registration in India

1. An Overview of LLPRegistration
LLP is a shorthand in the sense of Limited Liability Partnership. This is a hybrid company that
allows its participants to benefit from the advantages of a corporation and an entity that is a
partnership. It has the benefit of a limited liability company, and the ability to determine the
business matters by a mutual agreement, similar to a partnership company. The company's
members are able to share the risk, and to leverage the knowledge and expertise of each
individual as well as the division of labor.
A Limited Liability Partnership (LLP) can be subject to the Limited Liability Partnership Act
2008 The Bill was introduced on December 12th, 2008, and it was enacted on the 31st of March,
2008. The Act governs the establishment and regulations of the Limited Liability Partnership.
The Act was changed in 2021. The amendment introduced important changes to improve the
control of LLP in India
Benefits of Limited Liability Partnership Registration
The key benefits of a LLP Registration are listed below:
 Separate Legal Entity: An LLP has an independent legal status, much like businesses.
The LLP is different from its partners. These entities are able to sue a third party in the
event of a legal disputes, and reverse. Contracts are signed in the name of the LLP, which
gives confidence to all users and stakeholders .
 Limited Liability of The Partners: The members of an LLP have a limited liability.
This means that the partners' liability is only limited to the contribution they have agreed
to make to the business. This means they are responsible for only the amount of
contributions made by them , and are not personally bound to pay for any losses from the
business. If an LLP becomes insolvent after its liquidation, only LLP assets will be
responsible to pay its debts. The partners have no personal obligations thus they can be
considered reputable business people.
 Better Flexibility: The actions of an LLP is determined in accordance with the LLP
agreement which is based upon the collective decision of the members of the company.
This makes the operation of the company extremely flexible when compared to other
types of companies.
 Low Incorporation Cost And Minimal Compliance: The cost of incorporating an
LLP is modest compared against other types of business structure, such as a public and
private limited company. Additionally, the amount of compliances is lowest for these
types of entities. The LLP is required to file only two reports per year, i.e. Statement of
Solvency and Accounts as well as an Return of Accounts.

2. No Need For Minimum Capital ContributionThe LLP can be formed without the need for
minimum capital. There is also no requirement for obtaining any amount of capital by the
partners concerned.
 Perpetual Existence: This form of company has a perpetual Existence which is
not affected by the death of any partner
Checklist for LLP Registration
 Minimum of 2 designated partners and DSC of all the partners
 DPIN of all the serving partners
 Unique Name of the entity, which is not identical to any prevailing company or trademark
 The capital contribution made by the serving partners of the LLP
 LLP Agreement
 Proof of registered office of the LLP
List of Essential Documents for the Formation of LLP
The documents required for the registration of LLP are given below:
 Photos of the Partners
 Passport ( in case the applicant is NRI)
 PAN Card of Partners as an Identity Proof
 Address Proof of Partners
 Utility Bill for Proof of Registered office
 NOC from Landlord

3.  Copy of Rent Agreement
Procedure for Registering LLP in India
1. Obtain DSC, DIN & Name Approval
The first step is to apply for a Digital Signature Certificate (DSC) for all directors and
directors, as well as Digital Identification Number (DIN) and Name Approval. DSC is
easily obtained from the closest Certifying Authorities or CAs with self-certified copies
of their identity documents. DIN can be applied on the SPICe Form, along with the
contact details of Director. DIN is able to be used to create DPINs and also the Name
Approval may be obtained by filing with the Run LLP Form.
2. File the FiLLiP Form for the incorporation of LLP.
The next step is filing the FiLLiP form with MCA along with the essential documents.
3. Obtain the Incorporation Certificate
4. Whenthe applicationisfiledalongwiththe documentsrequiredThe Registrarof Companies
(ROC) mustinspectandconfirmthe applicationbeforeissuingthe certificate of incorporation
afterverification.
5. Draft LLP Agreement
After incorporation and before the incorporation date, an initial LLP agreement has to file within
30 days of the date of incorporation. The owner must submit the details in Form 3 (information
regarding LLP agreement and changes to the agreement, if any) in the form.
LLP Amendment Act 2021
The LLP Amendment Act was notified on 11 February 2022. This is the first-ever
Amendment after the Act came into force i.e. 2009.

4. The significant amendments in this Act is enlisted below
 Decriminalisation Of MonetaryOffenses
The minor, technical and compliance-related offences are transferred to the In the In
House Judication Mechanism framework and modified penalties. This amendment Act
has also decreased the penalty for monetary for certain offences.
 Power To Regional Officers To Compound Offense
The Regional officer named by the Central Government has the power to bring any offense into
compounding as per the amended law. The offense is punishable by the possibility of a fine.
However, the amended law also outlines the procedure for the process of compounding these
offences. The fine will be assessed according to the amount specified by the Act and the same
limit will not be applicable if the offender has been convicted of the same offence within three
years of the date of the first offense.
Fees And Penalties For Start-Up And Small LLP
 The amendment clarifies that a violation of the penalty for non-compliance with the
requirements in the LLP Act shall attract a penalty equal to half of the amount stipulated
in the Act and would be not more than. 1 lac in the case of an LLP as well as 50000 for
every partner or other individual according to the circumstances . This is augmented by
introducing an entirely new section i.e. Section 76A
 Establishment Of Special Courts
As per this amendment, special courts will be set up to only hear cases that relate to violations of
the Principal Act. This will allow for the speedier resolution of cases and less burden of regular
courts.
Other Key Amendments
1. Another section has been added to the new Act, i.e. Section 68 gives the power to the
Central Government to establish registration offices at places deemed fit by the Central
government.

5. 2. The residency requirement has been reduced from 180 days to 120 days during a FY
under Section 7 of the apex act. It further prescribes that the LLP should have at least 1
Designated partner who is a resident of India
3. The amended legislation also recognized the concept of Start-up LLP and provided the
power to the Central government to recognize certain LLP as start-up LLP by issuing
notification from time
4. Section 34 A has been added to the Principal Act, which gives the power to the central
government to prescribe auditing and accounting standards for various categories of
LLP after consulting with the National Financial Reporting Authority and the Institute of
Chartered Accountants of India.
Avail Vidhinyas Services to Address Registration
Formalities with ease
LLP registration demands a cautious method of operation as it is subject to a variety of legal
rules. The smallest lapse in the process of applying or the paperwork can cause rejection of your
application. This is why you require professional assistance. Vidhinyas is a professional
company. Vidhinyas we make sure that the person requesting LLP registration is kept up-to-date
throughout the process of registration. Our expertise will enable you to use registration with no
difficulty.
Our Procedure As Soon As the Client Drops a Request On
Our Platform?
 In-depth examination of the client's business and the nature of the operation
 Identification of applicable compliances for registration
 Initiating paperwork process and arranging pre-registration deliverable

6.  Confronting concerned authority for addressing registration formalities and document
submission
 Sorting out relevant post-incorporation compliances
Connect with us:
● pratik@vidhinyas.com
● www.vidhinyas.com