Common Mistakes to Avoid During LLP Registration

Registering a Limited Liability Partnership (LLP) is generally simpler than incorporating a private limited company, but many businesses still run into avoidable issues during the process. Here's a list of common mistakes to avoid during LLP registration, so you can ensure a smoother, faster approval:

???? 1. Choosing an Invalid or Conflicting Name
Mistake: Picking a name that is too similar to an existing LLP/company/trademark or not adhering to naming guidelines.

Avoid: Use the MCA Name Availability Tool and check for trademark conflicts before applying.

???? 2. Improper Documentation
Mistake: Submitting incorrect, inconsistent, or poorly scanned documents.

Avoid: Ensure all documents (ID, address proof, NOC, etc.) are:

Self-attested

Match exactly (name spellings, addresses)

Scanned clearly in the accepted format

???? 3. Incorrect Partner Details
Mistake: Errors in partners' PAN, DIN, address, or name details.

Avoid: Double-check all partner KYC details before submission. The name on PAN must match the name used in the LLP forms.

???? 4. Not Obtaining Digital Signatures (DSC) in Advance
Mistake: Trying to file forms without valid DSCs for all designated partners.

Avoid: Secure Class 3 DSCs for all designated partners before starting the registration process.

???? 5. Missing or Incorrect LLP Agreement
Mistake: Not filing Form 3 (LLP Agreement) within 30 days of incorporation or submitting an incomplete agreement.

Avoid: Draft a clear agreement covering:

Capital contributions

Profit-sharing ratios

Rights/duties of partners

Exit clauses

???? 6. Wrong Capital Contribution Reporting
Mistake: Mismatch between stated capital contribution and that in the LLP Agreement or bank documents.

Avoid: Ensure consistency across:

LLP Agreement

Form FiLLiP

Bank proof (if required)

???? 7. Ignoring Professional Help When Needed
Mistake: Trying to handle everything without understanding the legal implications or procedural requirements.

Avoid: Use a CA, CS, or corporate service provider for guidance—especially if you're unfamiliar with MCA filings.

???? 8. Missing Deadlines for Filing Forms
Mistake: Missing the deadline for Form 3 (LLP Agreement) or correction windows.

Avoid: Track filing deadlines carefully. Late submission of Form 3 can lead to heavy penalties (₹100 per day).

???? 9. Selecting Inappropriate Business Activity Codes
Mistake: Choosing the wrong NIC code or failing to describe business activity clearly.

Avoid: Use the correct NIC 2008 codes and write a clear business objective.

???? 10. Not Verifying Jurisdiction or Registered Office Requirements
Mistake: Registering a false or non-compliant office address.

Avoid: Make sure the address has valid proof (utility bill, rent agreement, NOC) and is within the ROC jurisdiction.