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Limited Liability Partnerships (LLPs) are a relatively new type of business entity in India, having been introduced in 2008 by the LLP Act. LLPs are most popular among small businesses, and with the recent relaxation of FDI rules relating to LLPs, NRIs and foreign nationals have shown an increased interest in forming an LLP.
Features of an LLP
- The Partners must contribute to the LLP in accordance with the LLP Agreement. Their share can take any form, including tangible and intangible assets, movable and immovable property, money, and cash.
- In terms of liability under a Limited Liability Partnership, the Company is liable for losses or debts incurred in the course of doing business, but the individual members of the LLP are not.
- The LLP must be registered by two people. The maximum number of partners, on the other hand, is unrestricted.
- In the case of an LLP, capital is determined by the business’s needs and the partners’ contributions to the partnership. The amount of capital determines the Stamp Duty on the deed.
- One of the LLP’s designated partners must be from India.
- The LLP’s name should be unique, and it should not be the same as or similar to the name of any other company, LLP, or trademark that has been registered or applied for.
Documents Required for LLP Registration: Indian Nationals
For Indian nationals forming an LLP, the following documents are required by law:
The PAN, or Permanent Account Number, is a unique identification number issued by the Indian Income Tax Department. For the LLP registration process, a copy of the proposed Partners’ PAN Card will be required.
The proposed Partner must also submit an address proof and a residential proof in addition to the PAN Card copy. The name of the Partner as it appears on the PAN Card, as well as the most recent address, must be included in the address proof. The document must be no more than two months old.
For Indian nationals, the following documents are acceptable proof of address.
- Ration Card
- Driving License
- Electricity Bill
- Telephone Bill
- Aadhaar Card
- Passport Election Card or Voter Identity Card
To register an LLP, you must also submit a residential proof in addition to the address proof. The residential proof is used to verify the Partner’s current address. Residential proof includes the following documents:
- Bank Statement
- Electricity Bill
- Telephone Bill
- Mobile Bill
Documents Required for LLP Registration: Foreign Nationals
For foreign nationals, submitting a passport as proof of identity is required. In the country where the passport was issued, it must also be Notarized or Apostilled. If the document is in a foreign language, it should be translated into English by an official translator and notarized or apostilled. Furthermore, if the Passport does not include the holder’s date of birth, an additional document containing the Partner’s date of birth must be provided, duly certified, attested, notarized, or apostilled.
The foreign national must also submit an address proof that is notarised or apostilled, in addition to the notarized or apostilled passport copy. The name of the Partner as it appears in the passport, as well as the Partner’s most recent address, must be included in the address proof. For foreign nationals, the document must also be less than one year old. For foreign nationals, the following documents are acceptable proof of address:
- Driving License
- Residence Card
- Bank Statement
- A government-issued form of identification containing the address.
In addition to the address proof, a residential proof must be submitted during the LLP registration process to verify the Partner’s current address. The residential proof, like the address proof, must include the name of the Partner as it appears in the passport and must be no more than one year old. Residential proof includes the following documents:
- Bank Statement
- Electricity Bill
- Telephone Bill
- Mobile Bill
If the document is in a foreign language, it must be notarized or apostilled after being translated by an official translator.
Documents Required for LLP Registration
In addition to providing proof of identity, address, and residential address for the Partners, proof of the LLP’s registered office address must be provided. During the company registration process or within 30 days of incorporation, submit the following documents as proof of registered office:
The landlord’s permission to use the premises as the company’s registered office (as stated on the Electricity Bill, Gas Bill, Water Bill, Property Tax Receipt, or Sale Deed). This is commonly referred to as a Landlord’s NOC; AND
Proof of any utility service, such as phone, gas, or electricity, that shows the address of the premises in the name of the owner or a document that is no more than two months old.