LLP company registration in chennai
Definition of LLP Registration in Chennai
If you are about to launch a startup shortly, the best option for registering as a company is Limited Liability Partnership.
There are many options for registering your business as an entity such as Proprietorship, partnership, private limited and LLP, of all these entities, we are about to see why LLP suits the best for your business.
What is llp company or Limited Liability Partnership Registration in chennai
Limited Liability Partnership, which is called LLP for short, is an improved version of a partnership firm. This type of entity was introduced in India in the year of 2008 through the enactment of the Limited Liability Partnership Act, 2008.
The main advantage of LLP is that it provides the advantage of Limited Liability to the partners. Partners enjoy the benefit of flexibility as a partnership and also limited liability as a Private Limited Company.
LLP company registration in chennai, is a form of incorporation in India, governed by the Limited Liability Act, 2008.
This is just the right constitution for Professionals like Lawyers, Architects, etc. The act was introduced in 2008.
This registration of Limited Liability Partnership in Chennai, gives the partners the advantage of Limited Liability and also the relaxation from complexity as compared with Private Limited.
Minimum Requirements to form a Limited Liability Partnership Registration in chennai
There are certain requirements to form a llp company registration in india
Minimum Two Partners
Minimum Two authorized partners
Registered office address in India
llp minimum capital contribution – No minimum paid
Min two members required for forming LLP similar like partnership
There is no minimum capital requirement for llp as per the Act of LLP.
The LLP Should be formed for any of the type of Lawful Trade or business
How LLP Different from Partnership
What are the characteristics need for limited liability partnership registration in india
Before opting for the llp registrations in india, we must first understand what are the characteristics of a limited liability partnership. We will briefly see each of its characteristics.
- Separate Legal Entity:
Limited Liability Partnership is a separate legal entity that is distinct from its partners.
This entity can acquire assets and can even sue any third party on its own behalf.
Even LLP has a separate PAN Card in the name of the Company itself.
Therefore, it is considered as a separate legal entity.
- Number of Members:
To register LLP company in India, a minimum of 2 partners is required and there is no upper limit for partners.
Additionally, there must be a minimum of two Designated Partners to register a LLP or Limited Liability Partnership in India.
- Capital Contribution:
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To incorporate a Private Limited Company, there is a statutory requirement of Rs 1 lakh as paid up capital.
But, whereas in an LLP there is no such minimum paid up capital requirement.
- Perpetual succession:
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Like a Private Limited Company, a limited liability partnership will not be extinguished even in the event of the death of the partner.
As it is a separate legal entity, it continues to exist even when a partner retires or becomes insolvent.
- Immense Status:
According to Section 3 of the Limited Liability Partnership Act 2008 (LLP Act), an LLP is a legal person, formed and incorporated under the Act.
Therefore, compared to a proprietorship or partnership firm, an LLP firm registration has a massive status.
- LLP Agreement:
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The LLP contract is the bible of the Organization that speaks of all the rules,
regulations and rights of partners and it also speaks about the rules and regulations of the organization.
Any violation of the terms between the partners is considered a breach of the LLP agreement.
Documents Required for LLP Registration
For the Partners and Designated Partners
PAN Card of the Members
Aadhar Card of the Members
Passport size photo of the Members
Residencial Proof of the members
Savings Bank Account Statement
For business address
Rental agreement of the office premises
Property tax receipt/ EB receipt
What is LLP Registration Process in Chennai and How to Register LLP online
The appropriate authority to register a Limited Liability Partnership is the Registrar of the Company. The process of company registration LLP in Chennai is completely online and registration would be done through the MCA Portal owned by the Ministry of Corporate Affairs. We will see the process in detail.
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Step1: Apply for Name Approval
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To be assigned for name approval, you must submit through the “RUN Service”. The applicant can propose a minimum of 2 names in a single application.
The registrar of companies after verifying the names and if it considers that the names comply with all the regulations of the Limited Liability Partnership Act, will allow the name.
Step 2: Apply for Digital Signature Certificate
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LLP online registration is entire done online, so you need a digital signature certificate shortly called DSC to sign documents online.
Every Partner as well as the Designated Partners must obtain this DSC from the authorized agencies of the Central Government.
The following documents are required to obtain the DSC
Aadhar Card of the applicant
PAN Card of the applicant
Passport size photo of the applicant
Step 3: Designated Partner Identification Number
The term Designated Partner Identification Number, shortly called the DPIN, is a unique identification number assigned to all the Designated Partners of the proposed LLP.
The DIR 3 form is appropriate for obtaining a DPIN number.
The Designated Partner identification number is issued to all Designated Partners for the purpose of regulating and monitoring their activities.
Step 4: Submit Form for incorporation of Limited Liability Partnership
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The next step in registering an LLP is to file the “FiLLip” form (Form for the incorporation of a Limited Liability Partnership Company) with the Registrar of Companies along with the necessary documents as stated above.
Upon filing the same, the ROC will issue the certification of incorporation of the Limited Liability Partnership.
In addition, a PAN Card would also be issued in the name of the company.
Step 5: LLP Agreement
Within 30 days of the issuance date of the LLP incorporation certification, partners must file the Limited Liability Partnership Agreement.
The agreement must be duly signed by all partners. This LLP Agreement talks about the rights, responsibilities, duties, liability of all partners and also the rules and regulations of the Limited Liability Partnership.