Limited Liability Partnership (LLP) Registration
Limited Liability Partnership (LLP) Registration
Limited Liability Partnership (LLP) was introduced in India by way of the Limited Liability Partnership Act, 2008. The basic premise behind the introduction of Limited Liability Partnership (LLP) is to provide a form of business entity that is simple to maintain while providing limited liability to the owners. Since, its introduction in 2010, LLPs have been well received with over 1 lakhs registrations so far until September 2014.
The main advantage of a Limited Liability Partnership over a traditional partnership firm is that in a LLP, one partner is not responsible or liable for another partner’s misconduct or negligence. A LLP also provides limited liability protection for the owners from the debts of the LLP. Therefore, all partners in a LLP enjoy a form of limited liability protection for each individual’s protection within the partnership, similar to that of the shareholders of a private limited company. However, unlike private limited company shareholder, the partners of a LLP have the right to manage the business directly.
LLP is one of the easiest form of business to incorporate and manage in India. With an easy incorporation process and simple compliance formalities, LLP is preferred by Professionals, Micro and Small businesses that are family owned or closely-held. Since, LLPs are not capable of issuing equity shares, LLP should be used for any business that has plans for raising equity funds during its lifecycle.
Documents Required for LLP Registration
Limited Liability Partnership (LLP) is a relatively new type of business entity introduced in India through the LLP Act, 2008. LLPs are mostly popular amongst small businesses and with recent relaxation of FDI rules relating to LLP, the interest to register a LLP amongst NRIs and Foreign Nationals has also increased. In this article, we provide details and descriptions of the documents required for LLP registration.
Indian National as Partner in LLP
The following documents are mandatorily required for Indian Nationals incorporating a LLP:
PAN Card: PAN Card copy of the proposed Partners of the LLP will be required for the LLP registration process. PAN or Permanent Account Number is a unique identification number issued by the Department of Income Tax in India.
Address Proof: In addition to the PAN Card copy, the proposed Partner must also submit an address proof and residential proof. The address proof submitted must have the name of the Partner as mentioned in the PAN Card and the most current address. The document must also not be older than 2 months. The following documents are acceptable address proof for Indian Nationals.
- Passport
- Election Card or Voter Identity Card
- Ration Card
- Driving License
- Electricity Bill
- Telephone Bill
- Aadhaar Card
Residential Proof: In addition to the address proof, a residential proof must be submitted to register a LLP. Residential proof is used to validate the current address of the Partner. The following documents are acceptable residential proof:
- Bank Statement
- Electricity Bill
- Telephone Bill
- Mobile Bill
Foreign National as Partner in LLP
The following documents are mandatory for Foreign Nationals registering a LLP:
Passport: In case of Foreign Nationals, Passport is a mandatorily required as a proof of identity. The Passport must also be Notarized or Apostilled in the country it was issued. In case the document is in foreign language, then it must be translated by an official translator to English and notarized or apostilled. Further, if the Passport does not contain date of birth of the holder, then an additional document indicating the date of birth of the Partner must be provided, duly certified or attested or notarized or apostilled.
Address Proof: In addition to the Notarized or Apostilled Passport copy, the foreign national must submit an address proof which is also notarized or apostilled. The address proof submitted must have the name of the Partner as mentioned in the Passport and the most current address of the Partner. Further, the document must also not be older than 1 year for foreign nationals. The following documents are acceptable address proof for Foreign Nationals.
- Driving License
- Residence Card
- Bank Statement
- Government issued form of identity containing address.
Residential Proof: In addition to the address proof, a residential proof must be submitted during the LLP registration process to validate the current address of the Partner. As applicable for address proof, the residential proof must also contain the name of the Partner as mentioned in the Passport and must not be older than one year. The following documents are acceptable residential proof:
- Bank Statement
- Electricity Bill
- Telephone Bill
- Mobile Bill
Registered Office Proof
In addition to providing identity, address and residential address for the Partners, proof must be provided to validate the registered office address of the LLP. The following documents must be submitted as proof of registered office during the company registration process or within 30 days of incorporation of the company.
- The authorization from the Landlord (Name mentioned in the Electricity Bill or Gas Bill or Water Bill or Property Tax Receipt or Sale Deed) to use the premises by the company as its registered office. This is usually referred to as NOC from Landlord; AND
- Proof of evidence of any utility service like telephone, gas, electricity, etc. depicting the address of the premises in the name of the owner or document, which is not older than two months.
