Doing Business Limited Liability Partnership (LLP) Registration

A Limited Liability Partnership (LLP) is a popular and preferred business structure, especially for new start-up entrepreneurs. It combines the flexibility of a partnership with the limited liability feature that protects partners’ personal assets. This structure allows partners to contribute to the business while limiting their financial liability to the extent of their contribution.

Features of a Limited Liability Partnership (LLP)

The following are key features of an LLP:

• Corporate Body: LLP has a legal status separate from its partners.
• Perpetual Succession: The LLP continues to exist even if a partner leaves or dies.
• Limited Liability: Partners are not personally liable for business debts beyond their investment in the LLP.
• Minimal Requirements: LLCs have fewer legal and regulatory requirements compared to other corporate entities.
• LLP Agreement: Defines the roles, responsibilities, and profit-sharing ratios between the partners.
• Secure Online Registration: LLP registration can be done electronically for ease and security.
• Easy Conversion: LLPs can easily be converted into other business structures if required.
• Profit-sharing: Profits are shared based on the LLP agreement, which provides flexibility for partners.

How to Register a Limited Liability Partnership (LLP) 

Follow these easy steps to register an LLP under the Limited Liability Partnership Act, 2017:

Step 1: Name Reservation

The first step in forming an LLP is to apply for name reservation with the registrar. This can be done either online or physically.

• Propose three names that meet the criteria in Section 6 of the LLP Act.
• Ensure the name ends with the acronym “LLP.”
• Avoid using prohibited words in the name, as specified by the LLP Regulations.
• The registrar will review the name and, if satisfied, approve it for 30 days. If you don’t apply for LLP incorporation within this period, the name reservation will be cancelled.

Step 2: LLP Incorporation

Within 30 days of receiving name approval, submit the incorporation application to the registrar with the following documents:

• National Identity Cards (NIC) of all partners (or passports for foreign partners).
• LLP Agreement: The partnership agreement, signed, witnessed, and notarised.
• Consent from Designated Partners (if applicable).
• Bank Challan: Proof of payment for registration fees.
• Authority Letter: From all partners designating an authorised person to file the documents.
• Name Availability Letter: From the registrar.

Step 3: Obtain a Certificate of Incorporation

After the incorporation documents are reviewed, the registrar will issue a Certificate of Incorporation, officially establishing the LLC.

Step 4: Begin Business Operations

Once you have received the Certificate of Incorporation, you can start your business operations under the LLP structure.

Registering a Limited Liability Partnership (LLP)

The process for registering an LLP is streamlined and offers a clear path for entrepreneurs to legally establish their businesses with the benefit of limited liability. By following the above steps, you can successfully register your LLP and start your business operations with confidence.