Are you thinking of starting a business? A LLC Registration or also known as LLP in India might be the best way to get started. LLC Registration protects your personal savings, is easier to run and gives your business a legal entity. Here are the steps to set up your LLC in India.
Stepwise Process to Set Up an LLC in India
Obtain Digital Signature Certificate (DSC)
Firstly, before initiating the LLP registration process, you must apply for the digital signature of the designated partners of the proposed LLP.
This is crucial because all the documents for LLP are filed online. Furthermore, all these documents need to be digitally signed.
You will need to obtain a class 3 category of DSC.
Apply for Designated Partner Identification Number (DPIN)
Secondly, you have to apply for the DPIN of all the designated partners or those intending to be designated partners of the proposed LLP.
The application for allotment of DPIN has to be made in Form DIR-3. Moreover, you have to attach the scanned copy of documents (usually Aadhaar and PAN) to the form.
Additionally, the form should also be signed by a Company Secretary, Chartered Accountant, or Cost Accountant in full-time practice.
Name Approval
Moving on, RUN-LLP (Reserve Unique Name-Limited Liability Partnership) is filed for the reservation of the name of the proposed LLP.
However, the registrar will approve the name only if the name is not undesirable in the opinion of the Central Government and does not resemble any existing partnership firm or an LLP or a body corporate or a trademark.
A resubmission of the form shall be allowed to be made within 15 days for rectifying the defects if any. There is a provision to provide for 2 proposed names of the LLP. You must apply for LLP incorporation within 3 months of the date of name approval by the MCA.
Incorporation of LLP
Proceeding further, the form used for incorporation is FiLLiP (Form for incorporation of Limited Liability Partnership) which shall be filed with the Registrar who has jurisdiction over the state in which the registered office of the LLP is situated.
File Limited Liability Partnership (LLP) Agreement
Lastly, the LLP agreement governs the mutual rights and duties amongst the partners and also between the LLP and its partners.
Moreover, an LLP agreement must be filed in Form 3 online on MCA Portal. Form 3 for the LLP agreement has to be filed within 30 days of the date of incorporation.
Additionally, the LLP Agreement has to be printed on Stamp Paper. The value of Stamp Paper is different for every state.
Document Requirement for LLC in India
Documents of Partners:
- PAN Card/ID Proof: All partners need to provide their PAN card.
- Residence Proof: Any one document out of voter’s ID, passport, driver’s license, utility bills (not older than 2 months), or Aadhaar card.
- Photograph: Passport size photograph on a white background.
- Passport (for Foreign Nationals/NRIs): Compulsory for foreign nationals and NRIs, notarized or apostilled.
- Proof of Address (for Foreign Nationals/NRIs): Driving license, bank statement, residence card, or any government-issued identity proof with address.
Note: Documents in languages other than English need a notarized or apostilled translation.
Documents of LLP:
- Proof of Registered Office Address: Must be submitted during registration or within 30 days, including:
- Rent agreement (if office is rented).
- No-objection certificate from the landlord.
- Utility bill (gas, electricity, or telephone, not older than 2 months) with complete address and owner’s name.
- Digital Signature Certificate: Lastly, one designated partner needs to opt for this for digitally signing documents.
LLP Forms to be submitted
- FiLLiP: Incorporation of LLP.
- RUN LLP: Reserving LLP name.
- Form 3: LLP agreement information.
- Form 8: Statement of Account and Solvency.
- Form 11: Annual Return of LLP.
- Form 24: Application for striking off LLP’s name.
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If you need any further assistance for LLP Annual Compliances or LLP Registration, E-StartupIndia is here to serve you in a simple stepwise process. Contact us at – 8881-069-069 or info@e-startupindia.com to know more.