Open a Limited Liability Company in India
Updated on Monday 23rd October 2017
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The popular limited liability company (LLC) that can be registered accross the world is known as limited liability partnership (LLP) in India. Through a LLP in India, the investors will benefit from limited liability, in the sense that they will be held accountable for the company’s debts only in the extent to which they have contributed to the company’s capital. When starting a business in India registered as a LLP, the registration procedure is performed following the regulations prescribed by the Limited Liability Partnership Act 2008 and the Companies Act 1956. Our team of specialists in company formation in India can offer assistance on the main procedures deriving from the above mentioned Acts, as well as on the documents that are to be submitted with the local institutions.
Types of LLPs in India
Under the regulations prescribed for commercial companies in India, the LLP can be set up as one of the following business forms:
• private limited company;
• public limited company.
The procedure on how to form a company in India for the above mentioned types of legal entities prescribes different regulations on the number of shareholders the company may have.
In a private limited company, the legal entity may be formed with a maximum of 50 shareholders (and minimum 2), while for a public limited company, there are no restrictions related to the number of participants (however, the minimum number is established at seven).
Foreign businessmen must know that from the above mentioned legal entities, the preferred business form is the private limited company, for both local and foreign businessmen and our team of agents in company registration in India can offer in-depth information on the main requirements applicable in this case.
Required documents for registering an Indian LLP
In order to open a company in India registered as a LLP, the company’s representatives will need to deposit a set of documents and the minimum requirements established in the sense refer to the following:
• the certificate stating the company’s name;
• the memorandum of association;
• the articles of association;
• the power of attorney.
The registration is handled by the Ministry of Corporate Affairs, which prescribes the legal procedures that are required in this sense. For example, the businessmen will need to obtain a Digital Signature Certificate, under the regulations of the Information Technology Act 2000. The certificate is necessary for submitting various electronic documents and it can only be used by the applicant who received the respective document.
The registration procedure is comprised of other compulsory steps and it is advisable to contact our team of consultants in company registration in India for more information on this matter.