How to register LLC in India.

HOW TO REGISTER LLC IN INDIA

AUTHOR : DEEPALI JAIN, VIVEKANANDA INSTITUE OF PROFESSIONAL STUDIES, PITAMPURA.

 

Meaning of LLC

 

A limited liability company (LLC)

An LLC is not a corporation in and of itself; it is a legal form of a company that provides limited liability to its owners in many jurisdictions. LLCs are well known for the flexibility that they provide to business owners; depending on the situation, an LLC may elect to use corporate tax rules instead of being treated as a partnership, and, under certain circumstances, LLCs may be organized as a not-for-profit

Limited liability company members may, in certain circumstances, also incur personal liability in cases where distributions to members render the LLC insolvent.

 

Formation of Limited Liability Company

The Limited Liability Companies (LLCs) are now globally famous and commonly preferred for business establishments in various economic fields of choice. In India, these limited liability companies are generally and distinguishably known as the limited liability partnership (LLP) firms. In ours, this exclusive and very beneficial web article, extended is the full range of information about the formation and registration of LLPs in all across India, by Indian and foreign entrepreneurs and investors.

 

How To Register LLC in India

In India, LLCs are registered under the rules and regulations of the Limited Liability Partnership Act, 2008, taking necessary and enlightening support if required, from the Companies Act, 1956. All correspondence regarding formation and incorporation of these are made with the Ministry of Corporate Affairs (MCA) of the Government of India, and with the online facilities available with http://www.llp.gov.in/. We support our clients comprehensively regarding how to register LLC in India. To register LLC in India, the following are the recommended steps:

For LLP registration in India, Click Here

  • At least two partners are required, with one or both partners equipped with DPIN and DSC.
  • Form-7 is submitted for acquiring these identification particulars.
  • Application for approval of the proposed names for the firm, is made with the Form-1, in accordance with the guidelines of the MCA.
  • After name reservation, all required information about the proposed firm, its main office, partners, and governing LLP Agreement, are filed through the Form-2, Form-4, and Form-3. After close examination and mature consideration of all documents forwarded, the Certificate of LLP Incorporation would be granted to the designated partner(s).

 

 

Below are the 4 steps in chronological order for incorporation of the company.

  • A. Digital Signature (DSC) :
    It is mandatory to obtain digital signature by any one of the Proposed Director for digitally signing the name approval form and the Company formation documents for filing the documents online, which are mandatory. For obtaining the digital signature the following documents required along with necessary fees:-

Alternative -1, when the Director is physically present in India

  • Application for DSC
  • One photograph affixed on the DIN Form duly attested by a Chartered Accountant or a Notary Public, in India.
  • Copy of passport (Identity Proof) showing name, father’s name, date of birth etc. duly attested by a Chartered Accountant Notary Public, in India.
  • In case Father’s name is not mentioned in the passport, some other documents with father name, such as birth certificate, driving license or any other documents mentioning father’s name issued by the Government Department will be required.
  • Residence Proof duly attested by Chartered Accountant and Notary public, in India.
  • An Affidavit confirming the arrival to India and physical presence duly notarized by the Notary Public, in India.
  • Copy of passport showing date of entry to India and stamp of immigration authorities at the Indian Airport.

Alternative -2, when the Director is not physically present in India.

  • Application for DSC
  • One photograph (Identity Proof)affixed on the DIN Form duly attested by a Notary Public from the Country where the Director is presently staying
  • Copy of passport showing name, father’s name, date of birth etc. attested by a Notary Public from the Country where the Director is presently staying.
  • Residence Proof duly attested by a Notary Public form the Country where the Director is presently staying
  • B. DIRECTOR IDENTIFICATION NUMBER (DIN)

CREATION OF PROVISIONAL DIN

For creating the provisional DIN the following information’s required. (Please note that the provisional DIN is granted by submitting the Form online by incorporating the below-mentioned information’s):-

  • Name as per Passport
  • Fathers Name
  • Date of Birth
  • Residential Address with Post Index Number (PIN)
  • Nationality & Citizenship
  • Residence Proof, Identity Proof and passport
  • Email address

REGULARISATION PROVISIONAL DIN

After the creation of provisional DIN, regularization of the same is required as per below:-

Alternative -1, when the Director is physically present in India

  • Form DIN-1 signed by the Director
  • One photograph affixed on the DIN Form duly attested by a Chartered Accountant or a Notary Public, in India.
  • Copy of passport (Identity Proof) showing name, father’s name, date of birth etc. duly attested by a Chartered Accountant Notary Public, in India.
  • In case Father’s name is not mentioned in the passport, some other documents with father name, such as birth certificate, driving license or any other documents mentioning father’s name issued by the Government Department will be required.
  • Residence Proof duly attested by Chartered Accountant and Notary public, in India.
  • An Affidavit confirming the arrival to India and physical presence duly notarized by the Notary Public, in India.
  • Proof of stay in India like hotel bill, police registration etc.
  • Copy of passport showing date of entry to India and stamp of immigration authorities at the Indian Airport.

Alternative -2, when the Director is not physically present in India.

  • Form DIN-1 signed by the Director
  • One photograph (Identity Proof)affixed on the DIN Form duly attested by a Notary Public from the Country where the Director is presently staying
  • Copy of passport showing name, father’s name, date of birth etc. attested by a Notary Public from the Country where the Director is presently staying
  • Residence Proof duly attested by a Notary Public form the Country where the Director is presently staying

REGISTRATION OF DOCUMENTS

The following are the Information’s required for the formation of Company

  • Approved DIN
  • Complete Address of Registered Office along with Postal Index Number (PIN).
  • Photographs (2 Nos) of the Directors.
  • Proposed main objects of the Company.
  • Memorandum & Articles of Association
  • A necessary filing fee depends upon the proposed share capital of the Company.
  • Embossing on Memorandum & Articles from the State Government after paying required fees.
  • Digital Signature.

Alternative -1, when the Director is physically present in India

  • Copy of passport (Identity Proof) showing name, father’s name, date of birth etc. duly attested by a Chartered Accountant Notary Public, in India.
  • In case Father’s name is not mentioned in the passport, some other documents with father name, such as birth certificate, driving license or any other documents mentioning father’s name issued by the Government Department will be required.
  • Residence Proof duly attested by Chartered Accountant and Notary public, in India.
  • An Affidavit confirming the arrival to India and physical presence duly notarized by the Notary Public, in India.
  • Proof of stay in India like hotel bill, police registration etc.
  • Copy of passport showing date of entry to India and stamp of immigration authorities at the Indian Airport.
  • Subscription clause to be filled in own handwriting of the proposed promoter/shareholder
  • Power of Attorney in favour of c consultant for authorizing him to attend before the Registrar of Companies
  • Affidavit duly signed by any one of the directors.

Alternative -2, when the Director is not physically present in India.

  • Copy of passport showing name, father’s name, date of birth etc. attested by a Notary Public from the Country where the Director is presently staying.
  • Residence Proof duly attested by a Notary Public form the Country where the Director is presently staying.
  • Subscription clause to be filled in own hand writing of the proposed promoter/shareholder duly Notarized by a Notary Public form the Country where the Director is presently staying and also attested by the Indian Embassy/Consulate of that country.
  • Power of Attorney in favour of consultant for authorizing him to attend before the Registrar of Companies duly Notarized by a Notary Public form the Country where the Director is presently staying and also attested by the Indian Embassy/Consulate of that country.
  • Affidavit duly signed by any one of the directors duly notarized by a Notary Public form the Country where the Director is presently staying and also attested by the Indian Embassy/Consulate of that country.

 

Conclusion

After the company name is approved, the incorporation documents must be filed with the Ministry of Corporate Affairs. The required documents include: notarized Directors’ affidavits and declarations, Memorandum of Association, Articles of Incorporation, Subscriber Sheet, and proof of Registered Office Address.

An Indian Limited Liability Company (LLC) obtains these benefits: 100% foreign ownership, limited liability, two shareholders (who can be foreigners) are required, low minimum share capital, and English is widely spoken and used in all documents.

 

For LLP registration in India, Click Here

 

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