Limited Liability Partnership (LLP)

Limited Liability Partnership is a hybrid form of organization introduced under the regulations of the Limited Liability Partnership Act 2008 in India.

Ideal for the startups intending to run a small-scale business and want to pilot run the business idea.

Features of LLP Registration in Pune

1. LLP is a corporate body formed under the LLP Act 2008 and is an alternate form of business.
2. It can be formed with a minimum of 2 designated partners. However, there is no limit on the maximum number of partners.
3. At least one of the designated partners must be a resident of India.
4. LLP offers the benefits of limited liability of a company & the flexibility of a partnership.
5. LLP has a separate legal entity, i.e. the LLP and its partners are distinct. An LLP entity continues to exist even after the death of partners.
6. An agreement between all the partners governs the rights and duties of the partners.
7. There is no mutual agency in the case of LLP. Thus, no partner would be liable on account of independent or unauthorized actions of other partners or their misconduct.

Benefits of Limited Liability Partnership in Pune

1. There is no minimum capital contribution required by the partners.
2. Hassle-free compliances and regulations
3. There is no Dividend Distribution Tax (DDT) applicable to LLP, as the distribution of profits to the partners is specifically exempt.
4. Involves cost-effective incorporation process in comparison to the public and private limited companies
5. It is optional to hold meetings regularly.
6. LLPs will have unique names, i.e. names that cannot be similar to the existing Company or LLP.
7. An LLP can be dissolved effortlessly with the consent of the partners.
8. FDI is allowed with the permission of RBI and FIPB.

LLP Registration Procedure 

1. Application for Registration of an LLP is submitted online with the Ministry of Corporate Affairs (MCA)
2. A minimum of two designated partners should obtain Digital Signature Certificate (DSC) from government-recognized certifying agencies for registration on the website.
3. Apply for all designated partners’ Director Identification Numbers (DIN).
4. Apply for reserving a name of the LLP in the form RUN-LLP (Reserve Unique Name-Limited Liability Partnership).
5. The incorporation of LLP on the FiLLiP form is filed with the Registrar.
6. After verifying all the documents, the Registrar issues the certificate of incorporation.
7. LLP agreement must be filed in form 3 within 30 days of incorporation. The LLP Agreement is printed on Stamp paper. The value of Stamp paper is different for every state.

Documents required for LLP Formation

• Photograph:-Passport-size coloured photograph of all the designated partners, preferably on white background.
• PAN Card / Proof of Identity:- A Copy of the PAN cards of all the partners and their proof of identity (Voters’ Identity card / Passport / Driving License / Aadhar Card). In the case of a foreign partner or NRI, a passport copy is mandatory. The passport copy and address proof should be notarized by the consulate of the Indian embassy and foreign public notary.
• In the case of foreign nationals, if the documents are signed in India, the individual has to furnish a PAN undertaking, OCI/POI, and Business Visa along with an arrival stamp as proof of presence.
• Proof for the registered address of the LLP:- Electricity Bill, Rent agreement along with NOC from the owner
• Address Proofs of Partners:- Latest Bank Statement / Telephone Bill / Electricity Bill / Property Tax bill. Duration of stay at the present address. (Address proof should not be older than 2 months).