LLP’s started in India in 2009 after the government passed the LLP Act, 2008. Post then, it has been a preferred entity for Entrepreneurs who want to set up any Traditional Business in India. Startups, who are looking to get funded still prefer Private Limited Companies over LLPs.
You can contact us here to set up an LLP!
In this article, we have enlisted the entire process of ‘How to Set up an LLP in India’ Hope this adds value to you:)
The process to set up an LLP is the same PAN India. It takes around 7-10 days to set up an LLP and the process to set it up is completely online. We have described the process below: –
1. Name Application
This is the first step to set up an LLP. You need to file a name application using the ‘RUN’ form. Prior to filing the name application, you need to do a proper name search to ensure that the name of your LLP is not similar to an existing Company/LLP or to an existing trademark.
2. Incorporation of the LLP
Once the name for your LLP is approved, you need to file for the Incorporation of the LLP in form FILLIP. This form contains the details of the Partners of the LLP, the address of the LLP, and information about the business of the LLP. This form is also used for allotment of DIN to designated partners. Once form FILLIP is approved, your LLP will be incorporated.
It takes around 7-10 days to set up an LLP and the process to set it up is completely online
3. LLP Agreement
After approval of Form FILLIP, the next step is to make your LLP agreement. This is one of the most important document for any LLP as it contains details of Profit sharing, capital, rights, and duties of partners. The LLP agreement is printed on a Stamp paper and is signed by all Partners. Once the LLP agreement is made, you need to file your LLP Agreement in Form 3 with the ROC.
4. PAN and TAN Application
Once your LLP is incorporated, you need to apply for its PAN and TAN. Once filed, it takes around 12-15 working days for your PAN to come to your address.
Process from 1 to 4 is the complete process to set an LLP in India.
All the best for your Business!
Bonus:- We have added the documents required to form an LLP in India below!
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Documents required for Incorporating your LLP:
I) Documentation Required for Designated Partners and Partners
1. Signed Digital Signature Form. (Only for ANY ONE Designated Partner)
2. PAN Card.
3. ID Proof (Any one of the following-Passport, Election Card or Driving License)
4. Address Proof (Any one of the following- Bank Statement, Electricity Bill, Telephone Bill or Mobile Bill) (Should not be older than 2 months and should be in the name of the person)
5. Consent to Act as a Designated Partner/Partner (A small Form which needs to be printed and signed)
6. Interest of Designated Partners (A small Form which needs to be printed and signed)
7. Subscriber’s Sheet (A small Form which needs to be printed and signed)
** Note: Separate Documents are required if the Designated Partner/Partner is a Foreign National/Foreign Company/NRI
II) For Registered Office Address (Note: You can start an LLP from a Residential Address as well!)
1. IF the Premises IS taken on Rent/Lease by the LLP.
a. Scanned copy of Lease Deed/Rent Agreement.
b. Scanned copy of any one of the Latest Electricity Bill/Telephone Bill/Gas Bill (Not older than two months)
2. IF the Premises IS NOT taken on Rent/Lease by the LLP.
a. Scanned copy Letter of Consent from the Owner of the Premises
b. Scanned copy of any one of the Latest Electricity Bill/Telephone Bill/Gas Bill (Not older than two months)
III) For filing LLP Agreement and making a PAN and TAN application.
1. LLP Agreement
2. PAN Application Form
3. TAN Application Form
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