LLP Registration in Meghalaya

LLP stands for Limited Liability Partnership, which is governed under the LLP Act 2008 in India. To register an LLP in India, a minimum of 2 partners are required. Partners' liabilities under an LLP are limited to the value of their capital contribution, and their personal assets are protected from business debts. An LLP is treated as a separate entity that continues to exist irrespective of the death, retirement, or exit of partners.

An LLP in Meghalaya can be an interesting business choice. Compared to other urban or fast cities, Meghalaya is not the wealthiest, but it stands as an important Northeastern territory. Meghalaya is widely popular as a tourist state, and therefore, its service industry is comparatively strong. It earned Rs. 133.43 crore from tourism in 2022 and generated 50,000 jobs.

Meghalaya offers good business opportunities, especially in the tourism allied sector, such as eco- and adventure tourism, hospitality, local products, and agro-based products. Applying for an LLP Registration online allows entrepreneurs to have access to growing markets while benefiting from lower operational costs.

Meghalaya is known for its beauty and abundance of natural resources. It is a mid-tier economy with potential to expand in various sectors. There are many benefits of registering your LLP in Meghalaya. Some of them are:

• Access to Untapped Growth and Growing Markets

Meghalaya is a resource-rich, agrarian economy that is still evolving. It offers abundant natural resources, fertile land, and favourable climatic conditions that support the state’s economy. This allows the new entrepreneur the chance to capture market share before saturation.

• State’s special status

The government has granted Meghalaya Special Category State (SCS) status. This status makes the state eligible for preferential financial assistance from the Central Government.

• Government Support and Startup Initiative

Given its status as a mid-tier economy,  the state government supports startup initiatives to attract more investments.

1. 1. MSME / Small-Enterprise Incentives & Schemes: The state supports small and medium enterprises (SMEs/MSMEs) through simplified registration and subsidies or support for setting up small and medium-scale industries.
   2. Easier Entry via state support: For small businesses or startups, forming a low-overhead structure like an LLP is often more viable; state support tends to favour small enterprises rather than large firms.

• Flexible Structure for Startups

The Meghalaya government aims to create a strong startup culture in the state. New businesses enjoy simplified compliance with labour-law self-certification. And have better access to government procurement, including 20% mandatory purchase from startups, exemption from EMD in tenders, and removal of minimum turnover requirements.

• Potential Cost-Efficiency

Compared to metro cities, the cost of setting up a business and registering an LLP in Meghalaya would be much less. This will allow business partners to direct more capital towards innovation and marketing.

• Scope for Community-Based Enterprises

Meghalaya’s strong cultural identity and artisanal skills offer collaborative opportunities for LLPs in crafts, tourism, and local products. The demand for authentic tribal crafts is steadily increasing among both Indian consumers and international tourists.

By registering an LLP in Meghalaya, entrepreneurs can work closely with local craftsmen to build a sustainable value chain.

To start an LLP in Meghalaya, you need to meet the following eligibility criteria:

• Partner Requirement: To register an LLP, at least 2 partners are required. There is no maximum limit.
• Designated Partners (DP): At least 2 partners must be designated partners, and one of them must be a resident of India.
• LLP Agreement: The partners must sign an LLP agreement clearly stating their rights, duties, and contributions in the business.
• Unique Business Name: The LLP business name must be unique and not related to any other business or trademark.
• Legal Activity: The LLP must be formed for legal business purposes and must not be involved in any illegal business activity.
• Digital Signature Certificate (DSC): Every Designated Partners must have a Digital Signature Certificate (DSC) to sign documents digitally.
• Director Identification Number (DIN)/DPIN: All designated Partners must hold a  Director Identification Number (DIN) or Designated Partner Identification Number(DPIN) issued by the Ministry of Corporate Affairs (MCA).
• Registered Office Address: The LLP must have an official registered address in India for official communication.
• FEMA / FDI-Related Regulatory Compliance: Foreign capital or foreign partner participation must comply with FEMA regulations.

Note: No minimum capital contribution required to register an LLP. Contributions can be made in cash, tangible or intangible assets, or other forms of benefits.

To register an LLP in Meghalaya, you must follow the following steps:

Step 1: Obtain a DSC for All Partners

All Designated Partners are required to obtain the Digital Signature Certificate (DSC). It is important to digitally sign the e-form that is to be submitted to the MCA portal. A Class 3 DSC is usually required.

Step 2: Apply for DIN/ DPIN

Every partner must have a Designated Partner Identification Number (DPIN).

• You can apply for a DPIN for up to 2 partners instantly while filing the FiLLiP form.
• You have to file Form DIR-3 separately if you have more than 2 partners.

Step 3: Get your LLP Name Approved ( RUN-LLP)

Apply to the Registrar of Companies (ROC), Meghalaya, using the RUN-LLP (Reserve Unique Name-LLP) form.

• You can propose two Unique names.
• Your name should not match any other existing company/LLP or registered trademark.
• You can also use RegisterKaro’s company name checker to verify the availability of your chosen name.

Note: If your form is rejected, you can resubmit it only once, so be careful with your selections.

Step 4: Filing Consent of Partners in Form 9

Individuals who are signed as Designated Partners must give their consent in Form 9. 

Form 9 includes a declaration by the partners that they are not disqualified under the LLP Act 2008.

Step 5: Filing for Incorporation (FiLLiP Form)

Submit the FiLLiP form on the MCA portal along with the following required documents:

• Identity and address proof of all partners
• Registered office address proof (plus utility bill within last 2 months)
• No Objection Certificate (NOC) from the property owner (if the office is rented)
• Consent of partners

Step 6: Drafting and Filing the LLP Agreement

The LLP Agreement defines the following things:

• Rights and responsibilities of partners
• Capital contribution and profit-sharing ratio
• Rules for decision-making, dispute resolution, and partner exit.

Step 7: Obtaining Certificate of Incorporation (COI)

Once the FiLLiP form and other documents are approved, ROC will issue the Certificate of Incorporation (COI). This will officially give your LLP the legal presence in  Meghalaya.

Step 8: Applying for PAN and TAN

An LLP must have the following documents to be tax-ready in the state:

• PAN (Permanent Account Number) for taxation
• TAN (Tax Deduction Account Number) if the LLP will deduct TDS

Issued by the Income Tax Department, these documents are important for opening a bank account, complying with tax laws, and carrying out legally recognized business activities.

Note: If you don’t file your LLP Agreement within the deadline, your LLP will automatically follow Schedule I of the LLP Act, 2008, which may not match how you want to run your business.

The following documents are required to register your LLP:

From the Partners

• PAN Card and Aadhar Card are essentially required.
• Identity Proof:  Voter ID, Passport, or Driving License
• Address Proof: Bank statement, electricity bill, or mobile bill (not older than two months)
• Photograph: Recent, clear, white background passport-size photograph.

Foreign Nationals/NRIs (if any partner is non-resident)

• Notarized (or apostilled) passport copy
• Proof of residence outside India (utility bill/bank statement, notarized/apostilled).

Proof of the Registered Office Address

• A copy of the Sale Deed or the property deed, if the property is owned.
• A copy of the rent agreement or lease deed, if the property is rented.
• Electricity bill/gas bill/telephone bill (not older than two months) for the registered office address.
• No Objection Certificate (NOC) from the property owner (if the office is rented)

The registration cost of an LLP varies based on your capital contribution and the professional services required for accurate submission. Here’s the cost breakdown for you to register your LLP in Meghalaya:

• Name Reservation Fee: Rs. 200 for filing the RUN-LLP form.
• Incorporation Fee:
  • Rs. 500 for LLPs with capital contribution up to Rs. 1 lakh
  • Rs. 2,000 for contributions between Rs. 1 lakh to Rs. 5 lakhs
  • Rs. 4,000 for contributions between Rs. 5 lakhs to Rs. 10 lakhs
  • Rs. 5,000 for contributions above Rs. 10 lakhs
• Digital Signature Certificate: Rs. 1,000 - Rs. 3,000 per designated partner, depending on validation level and provider.
• DIN/DPIN Application: Rs. 500 per designated partner.
• Professional Services: May charge Rs. 6,000 - Rs. 15,000 for complete LLP registration assistance.
• LLP Agreement Drafting: Rs. 3,000 - Rs. 10,000 depending on complexity and customisation requirements.
• Stamp Duty for LLP Registration: Varies by state.

Penalties for LLPs in Meghalaya

Not complying with basic guidelines and delaying the filing of important documents can lead to heavy penalties.

• Failure to File LLP Agreement within 30 Days: Penalty of Rs. 100 per day of delay.
• Delayed Annual Returns (Form 11): Penalty of Rs. 100 per day until filed.
• Late Filing of Statement of Accounts (Form 8): Penalty of Rs. 100 per day until filed.
• Non-Compliance with LLP Provisions: General Penalty of Rs. 1,000 to 5 lakhs.
• Operating without Registration: Partners become personally liable. They can face legal actions and unlimited penalties.
• False Statements in Documents: A penalty of up to Rs. 5 lakhs and possible criminal charges.
• Non-Disclosure of Partner Interest: A Fine of up to Rs. 1 lakh can be charged.
• Conducting Prohibited Business: Registration cancellation and a fine of up to Rs. 5 lakhs can be charged.

Knowing the detailed cost of registering an LLP is crucial to planning for capital contribution, planning, strategizing, and running a business.

After your LLP is registered, it is important to comply with some annual filings to avoid penalties and ensure smooth regulation. Here is a list of LLP annual compliances:

• Filing of Annual Return (Form 11): Every LLP must file its annual return with the ROC in Form 11, within 60 days from the end of the financial year (i.e., by 30th May). This form informs about the partners and their contributions to the LLP.
• Statement of Account & Solvency (Form 8): Every LLP must file Form 8 annually to declare its financial position and confirm solvency. This must be filed within  30 days from the end of the six months of the financial year (i.e., by 30th October).
• Filing of LLP Agreement (Form 3): Submit the LLP Agreement to the ROC in Form 3 within 30 days of incorporation. Delay in this could lead to heavy penalties.
• Event-Based Compliance: File the current forms when the following event happens:
  • File Form 4 for a change in partners/designated partners.
  • File Form 15 for a change in registered office.
  • Form 3 for amendment to the LLP Agreement.
  • File Form 5 for the change of LLP name.
• Income Tax Return Filing for LLP: Every registered LLP must file an Income Tax Return annually in Form ITR 5. The due date of filing depends on whether a tax audit is required.
  • By 31st July, if an audit is not required
  • By 31st October, if an audit is required. The Income Tax Act requires accounts to be audited if the annual turnover exceeds ₹40 lakhs or the capital contribution exceeds ₹25 lakhs.

Understanding post-registration compliance is essential to avoid hefty penalties and unnecessary expenses. Clear any queries related to registering compliances by talking to our professionals. Contact Now.