How Do You Start a Limited Liability Partnership?

An LLP or limited liability partnership is the partnership between the partners of the company having limited liabilities. In a limited liability partnership, partners of the company are not liable for the negligence or misconduct of the other partner.  LLP registration is enacted by the legislature under the Limited Liability Partnership Act, 2003 with an objective to introduce a type of business organization that is easy to manage and still have all the benefits of better credibility and limited liability.

Basic features of LLP registration

• LLP registration in India is governed by the rules and regulations made under the Limited Liability Partnership Act, 2008.
• After the registration of an LLP, it is regulated by the MCA (Ministry of Corporate Affairs).
• It is mandatory to submit a copy of the duly stamped partnership deed within the 30 days of LLP registration.
• An LLP is none other than a perfect blend of all the best features of the partnership firm and registered company.

How to start a Limited Liability Partnership?

There are some specific steps you need to follow to start a limited liability partnership. If you require assistance at any step of the process, you can contact our legal advisors at Enterslice.

Step 1: Choose a Name

Before starting any company it is important to decide an appropriate name for it. Make sure you choose a name that can be easily distinguished from the other business of your state. Other than that, many of the states demand inclusion of limited liability partnership or LLP at the end of your company name.

Step 2: Draft an Agreement for Your Company

It is highly recommendable to draft an agreement before starting a Limited Liability Partnership Firm. It defines the roles and responsibility of all the partners along with the assets and liability limitations of each and every partner. The agreement should also cover all the points related to the distribution of profits and loss, capital contributions, etc.

Step 3: File for LLP Registration

It is mandatory to file for a registration certificate to build up a limited liability partnership firm. For this, you can hire our legal Enterslice advisors that can help you from tip to toe to get a registration certificate within very few days. You require the following documents for the LLP registration:

1. KYC of the designated partners

To get an LLP registration certificate you require a minimum number of two designated partners. Designated partners are required to provide self-attested PAN card along with the KYC documents. Other than that they need to submit an aadhar card or voter ID card or passport and a utility bill as an address proof.

2. DSC

A digital signature is a basic requirement to file all the LLP registration forms online. All the forms are self-attested through a DSC first and then are submitted online to continue the registration process.

3. Name approval

Applicants are required to reserve the proposed name of their company before initiating the LLP registration procedure. They can get it done through the RUN (reserve unique name) i.e. LLP service available on the MCA portal.

4. Final incorporation

Once the applicant is done with the name approval, he can submit the application for LLP registration through filling the form on the MCA portal.

All these steps are needed to follow to start up a limited liability partnership firm in India. A partnership deed is an optional document, but the LLP registration certificate is mandatory to operate an LLP business in India.