Limited Liability Partnership is a relatively new model of business introduced in India. LLP was introduced by the Limited Liability Partnership (LLP) Act of 2008. LLP firm registration is the most popular way of commencing a business amongst the small scale enterprises and with the relaxation of Foreign Direct Investment (FDI) rules relating to LLP Registration.
In this blog, we will discuss the essential documents required for LLP registration.
Overview of Limited Liability Partnership
LLP firm Registration is the most preferred form of commencing a business by Entrepreneurs in India. Limited liability partnership does not have a complex business structure as compared to other business structures. LLP offers the benefit of limited liability to the partners of the firms as each partner of the firm has limited liability to the amount they invested in the firm; creditors or banks cannot take away the partners personal assets in case of unpaid debt, or we can say that LLP firm registration provides a separate legal entity to the firm at a very low cost as compared to other forms of business structures.
In other words, LLP is a hybrid form of Company, and a Partnership firm as LLP firm registration offers the flexibility of a partnership firm as well as the benefit of limited liability of a company. The procedure of LLP firm registration is not a complicated process. It can be done with fewer compliances; the applicant has to follow the prescribed rules and regulation of prescribed laws and submit the required documents to ROC (Registrar of Companies).
Necessary Documents for Limited Liability Partnership Firm
The list of documents required for LLP registration is not long. Following are the documents required of India nationals, Non-Resident Indian, foreign national partners and LLP firm:
Documents of Indian National Partners:
PAN Card
A certified copy of the designated partners' PAN card will be required for the limited liability partnership firm registration process. The Income Tax department issues the PAN card or Permanent Account Number. Permanent Account Number (PAN) is a unique identification number.
Address Proof
In India, most of the registration procedures are not complete without an address proof. Similarly, for limited liability partnership firm registration, all the LLP firm's proposed partner must submit documents to support address proof. The proposed partners have to make sure that detail of the provided PAN card and the documents submitted as address proof should match. Details such as name, father's name, date of birth should match the PAN card details, and it is the responsibility of the proposed directors to check if there is any correction required in the documents, and such revision must be done before submitting the documents to concerned authorities.
The following are the documents that can be accepted as Address proof:
Residence Proof
The address proof and residence proof are very similar, but there is a slight difference between them. Residence proof gives substantiation regarding a person's locality and identifies the precise location where a person resides. Accordingly, the proposed partners of the firm have to submit a document as residence proof.
The following documents are acceptable as residence proof:
Most recent Bank statement of the proposed partners.
Mobile or Telephone bill of the proposed partners of the limited liability partnership firm.
Water bill, Gas bill, the Electricity bill of the proposed partner's address.
Suitable Lease Agreement.
The proposed partners must keep in mind that the submitted utility bills should not be older than two months, and the submitted bills must be in the name of the proposed partners.
· Photograph
All the proposed partners of the LLP firm must submit two passport-sized photographs. The authorities have not provided any specified guidelines on the photograph's size and resolution, but the authorities advise that the photograph be clicked with a white background.
For NRIs and Foreign Nationals
Limited liability partnership firm registration can be completed by a Non-Resident Indian (NRI) or a foreign national. To carry out the LLP registration process, the foreign national or the Non-Resident Indian (NRI) partner has to submit their passport and address proof and residential proof. The foreign national or NRI has to make sure that the host country's authorities notarize the passport, which will be submitted by them, or they have to visit the Indian embassy in the country where they are residing and get their passport certified for the firm registration process.
If the passport or the address proof or the residential proof is in a foreign language, then the foreign national or the NRI must get it translated in English by an official translator and get notarized by the certified notary officer.
Documents of Limited Liability Partnership
Address Proof Registered Office of the LLP Firm
The proposed partners must submit the documents that specify the exact location of the LLP firm registered office at the time of the registration process or within 30 days from the firm's date of incorporation. If the limited liability partnership firm's registered office is on a rented or leased premise, then the proposed partners must submit a duly signed rental agreement or lease agreement along with the No Objection Certificate (NOC) signed by the landlord. In the No Objection Certificate (NOC), the landlord must mention that he/she does not have any problem with the proposed partners for opening an LLP firm's registered office on the premises. No Objection Certificate act as a consent letter provided by the landlord of the premises.
The proposed partners must submit the registered office's utility bills, such as water bill, electricity bill, or telephone bill. The submitted utility bills should not be older than two months, and it should contain the full address of the registered office.
Digital Signature Certificate
The Digital Signature Certificate (DSC) must be obtained by at least one of the proposed partners. The DSC is used in uploading documents online. DSC is used for signing the documents online. It has the same value as of a paper signature, and the proposed directors have to sign every document by DSC. Obtaining DSC is the first step in the LLP firm Registration.
Conclusion
For LLP firm registration, the documents mentioned in this article are necessary, and the persons interested in incorporating LLP firm must submit these documents. Limited Liability Partnership firm Registration is the most preferred form of commencing a business by Entrepreneurs in India.