Registration of LLP

LLP has the combined features of a partnership as well as of limited company. In simple sense, it is an improved version of traditional partnership.

LLP has a separate legal existence on its own, different from its partners who own it. Further partners liabilities are limited to their agreed contribution, and they are not personally responsible for the debts owed by or lawsuits against the LLP

LLPs are easier to register and has simpler compliance requirements compared to a limited company. Also, an LLP being a separate legal entity, can own and hold properties and other assets in its own name.

Even the financial institutions and PE investors are more comfortable to lend money to a registered LLP than to a traditional Partnership or Proprietorship.

Separate legal entity with limited liability of partners
Enjoys a Corporate identity yet limited liability
Minimum 2 designated Partners
No minimum capital requirement
More Flexible and Less compliance requirement compared to Company

Entity	Limited Liability Partnership
Governing Act	LLP Act, 2008
Authority giving Registration	Ministry of Corporate Affairs, Govt. of India.
Liability	The Partners and the Firm are recognized as separate legal entities, resulting in the partners’ liability being restricted to the capital they have invested in the firm.
A number of partners and requirements	LLPs must have a minimum of 2 partners, and there is no specified upper limit for the maximum number of partners.
Compliance	Required to submit the Annual return, Solvency statement and related compliances with the Ministry of Corporate Affairs. Income Tax and GST Compliances.

General Documents and Information required for LLP Registration

ID Proof of Partners:PAN Card, Aadhaar Card, Passport Size Photograph
Address Proof of Partners: Voter’s ID, Passport, Driver’s License, or Aadhar Card
Residence Proof of Partners:Partners are required to furnish recent documents, i.e., a bank statement, telephone bill, mobile bill, electricity bill, or gas bill from the last 3 months. (Should reflect partners Name and Address)
Proof of Registered Office Address:The landlord’s rental agreement and a no-objection certificate if the office space is leased. Also, a recent utility bill (gas, electricity, or telephone) with the complete address and owner’s name (dated two months or older) must be provided.
Nature of Business
Digital Signature Certificate (DSC):It is mandatory for at least one designated partner to possess a Digital Signature Certificate (DSC) for digitally signing the documents.
Foreign Nationals and NRIs:
- If foreign nationals and NRIs are planning to become partners in an Indian LLP must submit their passport.
- Additionally, proof of address, i.e., a driving license, bank statement, residence certificate, or any government-issued identity proof containing the address, is mandatory.

FAQs on One Person Company (OPC)

What is the benefit of having an OPC?

OPC gives a corporate identity to a proprietary concern, with a limited liability. It is suitable for small to medium level business. Also the compliance requirements are lesser than a private limited company.

Who can be a member or nominee of an OPC?

Any individual being Indian citizen and resident in India can become member/nominee of an OPC.

What is the minimum capital required to start an OPC

OPC can be started with any amount of capital and the law has not stipulated any minimum amount to start with.

Can a single person become member in more than one OPC?

No, one individual can become member in only one OPC.

What is the time required for completing the registration process of an OPC?

Ideally time required is 15-20 days, but this is subject to the correct and prompt receipt of documents from clients side and the time taken at ROC office.

How many directors can an OPC appoint?

Though an OPC has a single owner, he/she can appoint as many as 15 directors for administrative functions, without any share being held by them.

How many persons are required to form an OPC?

OPC requires only one member cum director. It also requires one nominee of the director.

Is there any restriction as regards size or turnover of an OPC?

In case the paid up share capital of an OPC exceeds fifty lakh rupees or its average annual turnover exceeds during the relevant period exceeds two crore rupees, then the OPC has to mandatorily convert into private or public company.