Streamline Your Business Setup by LLP Company Registration


Business people have many choices that they can make when it comes to forming a business. The most-used form today is Limited Liability Partnership (LLP) Registration,  which gives those in partnership forms more freedom of operating than those in limited companies but with limited liability protection. If you are an inexperienced founder or already experienced, it is clearly reasonable to register an LLP company for your business. As we have promised in this blog, let us explain to you what it means to register for LLP and why registering a company is a good idea.

What is an LLP?

To proceed with registration it is crucial to know what an LLP or Limited Liability Partnership actually is. Limited Liability Partnership is a structure that derived from both partnership firms and a private Limited Company. This model has been brought into India through the Limited Liability Partnership Act of 2008.

In an LLP, the liability of each partner is limited to the amount of their contribution, making it possible for one partner to avoid being vicariously liable for the wrongful or negligent actions of another. This structure, along with Secure Business LLP Company Registration, has made LLPs popular among professionals, new business entities, small businesses, and those looking to register a company, as it ensures minimal overlap of responsibilities and protection of the partners' personal assets.

Steps to LLP Company Registration:

Let us walk through the steps involved in LLP registration. Although it might seem complex at first, LLP Company Registration is a straightforward process when followed correctly.

Step 1: Get a Digital Signature Certificate

Subsequent to name registration, every partner who is designed to be a partner of the LLP Company has to apply for a Digital Signature Certificate (DSC). Due to the registration of the companies being done online entails the use of a digital signature, a DSC is required to enhance the signing of electronic documents.

Step 2: Director Identification Number (DIN)

Both the partners so designated must have a Director Identification Number assigned to them. It is interesting to note that you can apply for DIN while applying for LLP registration through the MCA portal. The partners must complete a DIN test, which will determine whether they are suitable for the company, if they don’t have it then they can use the previous DIN gained from their previous companies.

Step 3: Name Reservation for LLP

Naming your LLP is crucial. It is also important to select a special LLP name that would meet the stipulations of the MCA. It is possible to occupy your LLP name by using the RUN-LLP (Reserve Unique Name) link on the website of the MCA. The name of your LLP must be consistent with the objectives of the business. It must not bear the resemblance to any existent LLP or company since this may lead to rejection.

Step 4: Submitting Articles of Incorporation

After the name approval, you have to submit incorporation documents as mentioned below: LLP agreement and proof of the registered office details regarding the partners. The documents have to be filed electronically with the Ministry of Corporate Affairs (MCA) through Form FiLLiP. In this stage, the partners’ DSC and DIN are necessary for authentication purposes.

Step 5: Incorporation Certificate

Once they have reviewed your application and appreciated it, you will receive a Certificate of Incorporation from the MCA. This certificate shows that your LLP is well-registered and ready to start operation. On receipt of this, you are legally entitled to trade under this name LLP.

Benefits of LLP Company Registration:

1. Flexible Management  

This makes the management of an LLP flexible and minimal formalities are usually needed in the conduct of the business. Board meetings are not so often as it is mandatory in other company structures and no resolutions are required as well.

2. No Minimum Capital Requirement  

In the process of LLP company registration, there is no requirement for a minimum amount of capital that has to be provided. It’s possible to begin with whatever sum you consider optimal for your company, which makes Sprite one of the cheapest ways to start.

Conclusion: 

In case you are well informed about the procedure of LLP Company Registration, it is time to contact our LegalRaasta Experts to learn more about this process.  

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