# LLP refers to Limited liability partnership and is governed by Limited Liability Partnership Act 2008. Limited Liability partnership provides advantage of limited liability to its owners and at the same time requires minimal maintenance. The directors of a private limited company have limited liability to creditors. In case of default, banks / creditors can only sell companyís assets and not personal assets of directors.
## DOCUMENTS REQUIRED FOR LLP REGISTRATION
1.Copy of PAN Card of partners
2.Passport size photograph of partners
3.Copy of Aadhaar Card/ Voter identity card
4.Copy of Rent agreement (If rented property)
5.Electricity/ Water bill (Business Place)
6.Copy of Property papers (If owned property)
## MINIMUM REQUIREMENTS FOR LLP REGISTRATION
1.Minimum 2 Partners
2.No Capital Requirement
3.At least one Designated Partner as Indian Resident
4.DPIN for all Partners
## STEPS INVOLVED IN LLP REGISTRATION
1. Application of DSC & DPIN: The first step in this direction would be getting Digital Signature Certificate (DSC) and Designated Partner Identification Number (DPIN) for the proposed Partners of the LLP. Within a timeframe of 5 to 7 working days DPIN and DSC can be obtained for the proposed Partners. If the partners already have DSC and DPIN, then this step can be skipped.
2. Name approval: A minimum of one and a maximum of six proposed names are required to be given to the Ministry of Corporate Affairs (MCA). Subject to availability, naming guidelines and MCA processing time,within 5 to 7 working days.
3. MOA & AOA submission: Once name is approved, one needs to draft Memorandum of association and Articles of Associate. Both MOA and AOA are filed with the MCA with the subscription statement.
4. Get incorporation certificate: Incorporation documents can be submitted to the MCA along with an application for incorporation. MCA will usually approve the application for incorporation in 5 to 7 days, subject to their processing time. Incorporation certification is a proof that company has been creation. It also includes your CIN number.
5. Apply for PAN, TAN and Bank account:Then you need to apply for PAN and TAN. PAN and TAN are received in 7 working days. Post this, you can submit the Incorporation certificate, MOA, AOA and PAN with bank to open your bank account.
## FREQUENTLY ASKED QUESTIONS
1. What is the minimum number of Partners required to start a Limited Liability Partnership?
At least two partners are required for LLP registration. The maximum partners can be 200. If you are the sole owner, you can register as a One Person Company.
2. Who can become a partner in LLP?
Any individual/organisation can become the partner in LLP including foreigners/NRIís. However, the individual must 18+ above in terms of age and should have a valid PAN card.
3. How much money do I need to invest upfront in starting the business?
You need to have a bank account with a minimum balance, which could be as little as Rs. 5000. You need not invest any more capital in starting the business. You neednít even deposit this amount to the bank. You can also show that the capital has been utilised as the pre-incorporation expenses of LLP e.g, LLP registration expenses. You can also show this capital has been infused in form of assets such as computers etc.
4. Can NRIs/Foreign Nationals be a Designated Partner in LLP?
Yes, but only after he has been assigned with DIN/DPIN. However, at least one designated partner in LLP must be a Resident of India. In fact, the foreign director can also be a majority shareholder in the company
5. Can I register the LLP at my home address?
Yes, you can register your LLP at your residential address. It is perfectly legal to start the company at your home or in your garage. MCA team typically doesnít visit your office. You just have to provide your home address proof such as rent agreement or electricity bill.
6. Can a Salaried working person also become a partner in an LLP?
Yes, you as a salaried person can become a partner in an LLP. You need to check your employment agreement if that allows for such provisions. In most, cases employers are comfortable with the fact that their employee is a director in another company.
7. Can I convert my Limited Liability Partnership (LLP) in a Private Limited company?
No, you canít convert your LLP into a Private Limited Company as it is not MCA. Both the LLP Act, 2008 and the Companies Act, 2013 donít have any provisions on conversion of LLP in a private limited company. However, if you want to expand your business you can register a new Private Limited Company with the same name as that of the LLP. The LLP company just needs to issue a no objection certificate.
Generally, LLP Registration can takes 15-30 days.
10th September 2017 From India, Delhi