In India, LLC is more prominently known as the Limited Liability Partnership (LLP), and is formed, regulated, and governed in accordance with the Limited Liability Partnership Act, 2008, taking necessary references and guidance from the Indian Companies Act of 1956. For obtaining llc registration in India, the following are the steps involved:
- Obtaining DPINs and DSCs from the Ministry of Corporate Affairs, MCA, India, through Form-7.
- Forwarding proposed names in Form-1, as per the MCA Guidelines.
- After approval of name, Form-2, Form-3, and Form-4 are to be submitted for consideration. The online application can also be filed with www.llp.gov.in/ . These forms bear all information regarding the formation, partners, main office, and governance and regulation of the proposed LLP.
What is a limited liability companyIn this section, offered is comprehensive information to answer questions like, what is a limited liability company (what is llc)? And what are the requirements for an llc registration in India?
A limited liability company is the recognized form an entity that offers easy and flexible governance like a partnership firm, and advantage of limited liability like an incorporated company. All operations and entire business management of LLC are regulated and controlled directly by its designated partners as per the LLC Agreement. In India, a limited liability company is popularly known as a limited liability partnership (LLP). Other salient features of an LLC are the following:
- Only two partners are needed to form an LLC. There is no limit to the maximum number of its members.
- There is no minimum capital requirement recommended.
- Duties and responsibilities of the designated partners are specified in the LLC Agreement.
- Members have limited liability towards company's actions or debt.
- No one partner or member is fully responsible for actions of the company or other members.