FAQ (Frequently Asked Questions) on LLP Registration

FAQ (Frequently Asked Questions) on LLP Registration

What is Digital Signature Certificate (DSC)?

Digital Signature Certificate (DSC) is a legally recognised method of signing documents electronically. A digital signature is a type of asymmetric cryptography used to simulate the security properties of a handwritten signature on paper. Digital signature schemes normally give two algorithms, one for signing that involves the user's secret or private key, and one for verifying signatures that involves the user's public key. The output of the signature process is called digital signature.

Digital signature certificates are used by programs on the Internet and local machines to confirm the identity of a third party.

Digital signatures have often confused with scanned copies of a physical written signature, which do not have any legal backing for authentication of electronic documents.

What is Directors Identification Number (DIN)

Directors Identification Number (DIN)DIN is an identification number issued by the Ministry of Corporate Affairs, Government of India, to Directors of a company or Designated Partners of an LLP.

For obtaining DIN, an online application has to be submitted to the Ministry of Corporate Affairs with a copy of Identity and Address Proof of the Applicant digitally signed by the applicant and also to be signed by a Practicing Company Secretary / Chartered Accountant / Cost Accountant.

What is a Registered Office?

A Registered Office refers to the official correspondence address of an LLP or its principal place of business. The address of the Registered Office will be used for all official communications of the LLP.

Registered office of an LLP can be shifted from one place to another in the same state or from one state to another after complying with legal requirements.

The LLP shall affix the name and address of its registered office outside every office or place of business in a prominent position. Also, the name, registration number, ‘Registered with Limited Liability’ and address of its registered office should be mentioned in its business letters, bills and other official publications.

Who is a partner of an LLP?

A partner in relation to an LLP means any person who becomes a partner in the liability partnership in accordance with the LLP agreement.

Who can become a partner of an LLP?

An individual (who is capable of entering in to an agreement) or a body corporate can become a partner in an LLP. A body corporate means an LLP registered under the LLP Act, limited company registered under the Companies Act, a registered legal entity in any country registered under relevant laws of that country. However, it does not include a society or a corporation sole.

Who is a Designated Partner?

A designated partner of an LLP means the partner who is responsible for carrying out all acts and things that are required for the functioning of the LLP in respect of compliance of provisions, filing of documents/returns/statements under the LLP Act and things as may be specified in the LLP agreement.

An LLP should have a minimum of two designated partners who are individuals and at least one of them should be resident in India.

What is Contribution?

Contribution means the amount contributed by each partner in the LLP as per the LLP agreement. The contribution is the liability of each partner and an LLP can recover the agreed contribution from the partner. A partner can contribute to the capital by cash, goods or services subject to applicable valuation.

Is Foreign Direct Investment (FDI) Permitted in LLP

Foreign Direct Investment (FDI) is permitted in LLPs under automatic route subject to the sectoral cap regulations. FDI in LLPs will not be allowed in sectors such as agricultural/plantation activity, print media or real estate business.

What is LLPIN?

LLPIN is a 7-digit alpha numeric registration number allotted by Ministry of Corporate Affairs, Government of India, to an LLP.

For example, AAA-0002 is the number allotted by the Ministry of Corporate Affairs to CompaniesInn Consulting LLP, the first LLP registered online in India.

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