How to easily set up a Limited Liability Partnership in India?

A Limited Liability Partnership (LLP) is a business entity with the perks of the partnership firm and a private limited company. Another factor that sets this business entity apart is the registration process. It is easy. 

Every modern Indian is born with an entrepreneurial spirit inside them. To bring out that spirit and establish a business entity isn’t an easy step. However, times have changed. Most incorporation processes are now automatic. Therefore, any individual with even a speck of knowledge can establish a company. However, that doesn’t mean that such folks don’t require any help.

Therefore, this article unveils simple steps to acquire LLP registration in India.

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Choose the name for your Limited Liability Partnership.

Name selection is the most laborious step of starting an LLP. We are not saying it will be a smooth-sailing from here on out. However, you realize at this step how many entrepreneurs ponder upon the same name for a limited liability partnership. Here are the tips that you can follow when choosing the right name for your LLP:

Ensure that the title does not offend any community: 

Offensiveness is slowly becoming the second nature of this generation. It is surprising how even the name can tick off a particular community. Thus, you have to be careful when selecting your LLP’s title. Choose a name that’s inclusive and doesn’t contain any controversial terms.

Do not choose generic names for your business: 

Yes, we understand choosing familiar terms can enhance the marketability of your business. However, LLP’s title should be unique. Play around with generic terms and select something that none have heard of before.

Follow the terms of Emblems and Names Act, 1950

There are some terms that the Ministry of Incorporation discourages any LLP from using. And all those words come under the Emblems and Names Act, 1950.

Get the DPIN of the partners of your LLP.

To the well-versed, an LLP is a public limited company with the infrastructure of a partnership firm. Thus, akin to a company, you must obtain Designated Partner Identification Number for your partners. It will enter the names of the heads of your Limited Liability Partnership in the MCA registry.

Get the DSC

The LLP registration process to obtain the registration certificate is online. Thus, you must get the Digital Signature Certificate. It will allow you to fill in the details in the online application form.

Apply online

After procuring the DSC, go to the official MCA portal. Register as a new user, and start filling the LLP registration application form. You will find the details to be self-explanatory. Thus, you can enter the details yourself.

Get the Certificate of Incorporation 

After assessing your application, the MCA will issue you the certificate of incorporation. However, what you get here will be a preliminary certificate. The next step will validate it.

Draft the LLP agreement

Create an LLP agreement. It is the document that contains all the essential details about your Limited Liability Partnership, including:

  1. Details of all the partners
  2. Information regarding responsibilities of the partners
  3. Description pertaining to the objectives of the LLP
  4. Profit-Sharing details
  5. Liability-sharing details
  6. Net-worth details
  7. Shareholding Pattern details

Submit the LLP agreement to the MCA

After drafting and assessing your LLP agreement, you must submit it to the office of the LLP registrar. After analyzing it, the Registrar will legitimize your Certificate of Incorporation.

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As you can see, the steps to incorporate an LLP are effortless. However, walking along those steps requires precision and guidance. Without those two, you can’t procure your incorporation certificate on time — delaying the operations.

Thus, get assistance from the experts when you get the chance.

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