LLP Registration in Chennai

As per data, till 2022, 252460 Limited Liability Partnerships (LLP)s were registered in India. An LLP is a business structure that gives you the benefits of both a partnership and a company. It provides limited protection for the partners of the firm and is governed by the Limited Liability Partnership Act, 2008. The key feature of the LLP is that the personal assets of the partners in the firm are protected. Partners are only liable for the amount they have invested in the firm.

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What is an LLP

LLP is a hybrid of a partnership and a company. It is a separate legal identity in which the partners’ liability is limited to the extent of their assets. The LLP agreement between the partners governs LLP. LLPs are common in professional businesses, such as accounting firms, medical practices, law firms, etc.

Why Choose an LLP in Chennai?

Here are the main reasons entrepreneurs go for LLP registration in Chennai:

  • Limited Liability: The partners’ personal assets are safe.
  • Flexibility in Taxation: You can choose how you want to be taxed – like a partnership or even a company.
  • Easy Setup and Maintenance: You do not need many documents to form an LLP as compared to a private company; only a few paperwork and compliance requirements are needed.
  • No Minimum Capital: You don’t need a fixed amount to start an LLP, which is great if you’re just getting started.
  • Unlimited Partners: You can have as many partners as you want. However, you need a minimum of two partners to form your LLP.

Partners in an LLP:

There are two types of partners in an LLP, and it is mandatory for a person to be at least 18 years old in order to become a partner in an LLP:

  • Designated Partners: They are responsible for managing the day-to-day functions of the LLP. At least two designated partners are required in LLP.
  • Other Partners: They do not manage the day-to-day functions of the firm. They are additional partners who contribute to the firm’s business. Their profit and loss sharing ratio depends upon the LLP agreement.  

What Documents Do You Need for LLP Registration in Chennai?

For Indian Nationals:

  1. PAN Card: Copy of the PAN cards of the partners.
  2. Identity Proof: Voter ID, Passport, Driver’s License, Aadhaar Card.
  3. Address Proof: Bank Statement, Electricity Bill, Telephone Bill, etc.
  4. Home Proof: Valid paper showing the present home location.

For Foreign Nationals:

  1. Passport: It will serve as a mandatory proof of name, signed or apostilled.
  2. Address Proof: Driving License, Residence Card, Bank Statement, etc., signed or apostilled.
  3. Residential Proof: Document proving the present address, not older than one year.

For Registered Office:

  1. Proof of Registered Office Address: Recent energy bill in the company’s name, not older than 2 months.
  2. No Objection Certificate (NOC): Issued by the owner of the building property.
  3. Subscriber Sheet: Witnessed by a professional like a Lawyer, Chartered Accountant, or Company Secretary.

General Requirements:

  1. LLP Agreement: It governs rights and jobs among partners and the LLP.
  2. DPIN: Designated Partner Identification Number.
  3. DSC: Digital Signature Certificate for partners.
  4. Incorporation Documents: Forms like FiLLiP, Form 3, Form 8, etc.

How to Register an LLP in Chennai: A Simple Guide

Follow the following steps to register an LLP in Chennai:

  1. Get a DPIN (Designated Partner Identification Number): Every partner must apply for a DPIN. If a partner already has a DIN (Director Identification Number), they can use that.
  2. Register for a Digital Signature Certificate (DSC): This is a mandatory step, as it is needed to submit your documents online and ensure their security.
  3. Choose the name for an LLP: Once you obtain DPIN and DSC, choose a name for your LLP. The name must be unique and should not infringe on any existing name. You can check the availability of names on the MCA Portal. You can also reserve a name for your LLP using the RUN LLP form.
  4. Create an Account on the MCA Portal: Register your firm yourself on the Ministry of Corporate Affairs (MCA) portal so you can file forms and access services.
  5. Fill out the Form for Incorporation: Complete the FiLLiP form. You need to add details about the partners involved, the registered address of the firm, the LLP agreement, and a declaration from the partners giving consent.
  6. Draft an agreement for LLP: Once your designed name is available, the next step is to draft an LLP agreement. The agreement must be exhaustive and carefully drafted to incorporate all the procedures for the ad, etc., addition and removal of partners, profit-loss sharing ratio, and capital contribution. Make sure to get the agreement notarised by an authorised notary. Form 3 is used to file the LLP agreement, and it has to be filed within 30 days of the date of incorporation.
  7. Get Your Certificate of Incorporation: Once everything is processed, you’ll get your LLP Certificate and your business will be officially registered.

Why Choose Chennai Filings?

  • Affordable Pricing: We offer LLP registration in Chennai at the most affordable and competitive prices. Our team of professionals is familiar with and quick to use the registration process.
  • Expert Support: Our team ensures a smooth registration process to ensure that there are no delays in the registration process.
  • Dedicated Service: We cater to each client individually. We provide personalised assistance at every step to ensure that all your doubts and queries are resolved.

If you’re ready to start your business in Chennai, contact Chennai Filings today for easy, hassle-free registration!

FAQ's

1. How many partners do I need to form an LLP?

At least two partners are needed to form an LLP. There’s no upper limit to the number of partners.

No, there’s no minimum capital required to start an LLP. You can start with any amount.

You will need ID and address proof for the partners, PAN cards, and a No-Objection Certificate from the landlord if you’re renting office space.

If the LLP has a turnover of Rs. 40 lakhs or more or a capital contribution of Rs. 25 lakhs or more, its accounts need to be audited.

A DIN is a unique number given to directors or partners. It’s used for identification in official documents. You get this by filling out eForm DIN-1.

No, an LLP is meant to do business for profit. Non-profit activities aren’t allowed under this structure.

You’ll need to file Income Tax returns and GST returns if applicable. You also need to keep proper records and possibly deduct TDS (Tax Deducted at Source) on payments.

A DSC is an electronic signature needed for submitting documents online to the Ministry of Corporate Affairs.

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