Limited Liability Partnership (LLP) is a popular business structure that offers the benefits of limited liability to its partners while allowing them to manage the business as per their wishes. LLP registration requires the fulfilment of certain eligibility criteria. In this article, we will discuss the eligibility criteria for obtaining an LLP registration certificate.
- Minimum number of partners
To register an LLP, a minimum of two partners are required. There is no upper limit on the number of partners in an LLP, but there must be at least two designated partners who are individuals and Indian residents. Foreign nationals are also allowed to be designated partners of an LLP.
- Registered office
An LLP must have a registered office in India. It can be a commercial or residential property, but it should be a valid and physical address that can receive legal notices and communications.
- Capital contribution
LLPs do not have any minimum capital requirement. Partners can contribute any amount of capital to the LLP as per their agreement. However, it is essential to maintain proper records of the capital contributed by each partner.
- Partner Identification Number (PAN)
Every designated partner and partner of an LLP must have a PAN card issued by the Income Tax Department. It is essential to have a PAN card for opening a bank account, filing tax returns, and other business transactions.
- Digital Signature Certificate (DSC)
A digital signature certificate is required for filing LLP registration documents with the Ministry of Corporate Affairs (MCA). At least one designated partner must have a valid DSC issued by a certifying authority in India.
- Name reservation
Before registering an LLP, it is essential to reserve a unique name for the LLP. The name must not be similar or identical to the name of any existing company or LLP. The name should also comply with the LLP name guidelines provided by the MCA.
- Documents required
To obtain an LLP registration certificate, the following documents are required:
- Address proof of registered office
- Identity proof and address proof of designated partners
- PAN card of designated partners
- Digital signature certificate of designated partners
- LLP agreement
In conclusion, the eligibility criteria for obtaining an LLP registration certificate include a minimum of two partners, a registered office in India, no minimum capital requirement, a valid PAN card for partners, a digital signature certificate for designated partners, a unique name reservation, and essential documents. LLP registration is a straightforward process that can be completed online with the MCA. LLP is a popular business structure for small and medium-sized businesses due to its flexibility, limited liability, and ease of compliance.