Limited Liability Partnership Registration in India Eligibility Criteria

1. Limited Liability Partnership Registration in India Eligibility Criteria Limited Liability Partnership Registration in India combines the benefits of limited liability with the flexibility of a partnership. It has been regulated by the Limited Liability Partnership Act since 2008. It is one of the popular business structures for small and medium-scale businesses. Eligibility Criteria for LLP Registration in India ● Indian Citizen and Resident: To establish an LLP in India, two designated partners of an LLP must be Indian citizens. ● Foreign Nationals and Foreign Companies: To be a partner in LLP foreign nations and residents should follow guidelines provided by the government of India. These guidelines involve obtaining a Digital Signature Certificate(DSC), Director Identification Number, and approval from the Reserve Bank of India(RBI) and Investment Promotion Board (FIPB). ● Non-Resident Indians(NRI): Non-Residence of India can also become partners in LLP they have to follow similar guidelines followed by Indian residents. ● Designated Partners: They are the individuals who are responsible for managing all the affairs of the LLP. Every LLP should have two designated partners who are persons and at least one of them is an Indian citizen the designated partners need to obtain a Director Identification Number and Digital Signature Certificate to sign the documents filed with the Registrar of Company(ROC). Minimum Requirement of Capital for Starting an LLP The importance of capital in any business cannot be neglected. Usually, the laws and regulations in various businesses require a particular level of initial capital contribution at the time of incorporation. Minimum capital refers to the amount of financial contribution needed from the directors at the time of LLP incorporation or at the time when a new partner is admitted to the existing LLP. There is no requirement for partners to contribute a minimum amount of capital in a Limited Liability Partnership (LLP). All matters related to capital contributions are determined exclusively by the terms outlined in the LLP agreement. The legislature’s intention in enacting the Limited Liability Partnership Act of 2008 was to prioritize the LLP agreement made by the parties involved. Consequently, the fundamental requirement of capital contribution, which is crucial in all business structures, is left to the discretion of the stakeholders. The Act does not specify a minimum paid-up capital or a minimum capital requirement. Hence, it can be concluded that there is no concept of share capital in a Limited Liability Partnership (LLP) as there is in a corporation. However, partners must invest some capital,

2. known as partner’s capital, to establish an LLP. This contribution can be in the form of tangible, movable, immovable, or intangible property, as well as any other benefit to the LLP.