Limited Liability Partnership (LLP)

LLP Registration in India has become an alternative form of business that provides the advantages of a Company and the flexibility of a Partnership firm into a single organization. The Concept of LLP in India was introduced back in 2008 by the Limited Liability Partnership Act of 2008. This unique hybrid is suitable for setting small, medium-sized businesses. It is very easy to manage and incorporate a Limited Liability Partnership in India. To register an LLP minimum of two partners are required, there is no upper limit as such. The LLP agreement states the rights and the duties of the Partners. In an LLP one partner is not responsible for the misconduct and negligence of the other partner. The partners are responsible for the compliances and all the provisions that are specified in the LLP agreement.

LLP Registration Requirements

Limited Liability Partnership (LLP) is a type of legal entity that was introduced in the year 2010 as a hybrid between a company and partnership firm. The MCA has completely revamped the process for company registration in the year 2018. Similarly, the process for LLP registration is also expected to be simplified and centralised.

Forms for LLP Registration

The registration of LLP can be accomplished through the following MCA forms:

• Form 1- Form for application for reservation of change of name.
• Form 2- Form of incorporation document and statement.
• Form 4- Notice of appointment of partner/designated partner and changes among them, intimation of DPIN by the LLP to Registrar and consent of partner to become a partner/designated partner.
• Form 12- Form for intimating other address for service of documents.
• Form 15- Notice of change of place of registered office.
• Form 16- Certificate of Incorporation.
• Form 23- Application directing the LLP to change its name.
• Form 25- Application for reservation/renewal of name by a foreign LLP/foreign company.

Number of Partners

Incorporation of LLP requires a minimum of two partners, and there are no restrictions on the maximum number of partners. The following persons can be partners in an LLP:

• Individuals.
• Limited Liability Partnerships.
• Companies.
• Foreign Limited Liability Partnerships.
• Limited Liability Partnerships incorporated outside India.
• Foreign Companies.

Its important to note that the following bodies or individuals cannot be admitted as partners in an LLP:

• Co-operative society
• Minor

Government Fee for LLP Registration

The government fee payable for LLP registration are as follows:

• LLP whose contribution is limited to Rs 1,00,000 – Rs. 500.
• LLP whose contribution exceeds Rs 1,00,000 but is limited to Rs 5,00,000 – Rs. 2000.
• LLP whose contribution exceeds Rs 5,00,000 but is limited to Rs 10,00,000 – Rs. 4000.
• LLP whose contribution exceeds Rs 10,00,000 – Rs. 5000.

LLP Name

The basic dictum is that the name of an LLP should not include the ones which are prohibited under the Emblems and Names Act, 1950. Further, the proposed LLP name should not be similar or identical to an existing company name or trademark. Let’s examine a few other excluded names:

• Usage of words which are offensive to any section of people.
• The proposed names should not be equivalent or identical with that of another LLP.
• The proposed name should avoid any phonetic resemblance to that of an existing LLP.
• It includes the word Co-operative and Sahakari.
• It indicates the participation of the Central or State Government, though permissible on specific circumstances.
• The proposed name contains the words “British India”.
• The proposed name implies association or connection with any Embassy/ Consulate/Municipal/Panchayat/Zila Parishad or any other body connected with the Union or Central Government.
• It includes the name of a registered Trade mark, and the consent for using the same was not obtained from its rightful owner.
• It is identical with the name of the company which is struck off, up to the period of 5 years.
• It includes words like bank, insurance, banking, venture capital, mutual fund etc, without the consent of the regulatory authority.
• It includes the name of any foreign countries. It can be included if the firm proves any allegiance or collaboration with the particular nation.
• The proposed name is indicative of a profession, without obtaining due approval from the Council governing such profession or any other nominated authority.