How to Open a Demat Account for Limited Liability Partnership (LLP) & Required Documents?
Limited liability partnerships (LLPs) are increasingly looking to invest in mutual funds, stocks, and ETFs, in a bid to scale up investments and earn future returns. In this case, demat accounts are helpful for LLPs investing in securities, streamlining transfers/transactions, offering a centralized platform for portfolio tracking and management, and simplifying the holding process for assets in this category.
Let us look at the step-by-step process to set up a demat account for LLPs along with the document checklist and a few other vital aspects below.
Step-by-Step Process to Open a Demat Account for an LLP
These are the steps you need to follow for opening a demat account on behalf of an LLP:
Step 1- Choose a brokers that offers Demat account services for LLPs
Step 2- Gathering the necessary firm and partner documents
Step 3- Share the required documents with the broker. Depening on the broker, the process can either be online or offline
You may have to upload your signature and selfie in the online process, while for IPV (in-person verification), you will have to show the original documents to the executive in question. The latter may be necessary for non-individual accounts in most cases.
Step 4- The broker will communicate once the account has been activated and ready for trading.
✅ Click here to Open a Demat Account for Limited Liability Partnership (LLP)
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Documents Required to Open an LLP Demat Account
You will need these documents to open a demat account for an LLP:
- PAN & Aadhaar Card of Partners
- LLP PAN Card
- Registration/Incorporation Certificate of the firm
- LLP Agreement Copy
- LLP Address proof (Latest Bank Statement)
- Details of partners
- Copy of balance sheet for the last 2 financial years (if not present then net worth certificate from CA)
- Board Resolution (on the firm letterhead) for opening demat account
- List of Partners (on the firm letterhead)
- List of all Authorised Signatories (on the firm letterhead) (if any)
- Shareholding Pattern
Read More : How to Open a Demat Account for Partnership Firms & Documents Required
Points to Keep in Mind
Here are some things that you should keep in mind while setting up your LLP account with a depository participant (DP).
- Make sure you provide valid documentation and fill up the form without any errors
- Choose a reputable and reliable DP with a solid track record
- Check the annual maintenance charges (AMC) for the demat account along with other brokerage fees and other associated costs. Compare these thoroughly before deciding
- Make sure the DP offers a secure and easy-to-use trading platform with all the tools that you require. Look out for trading features including data encryption and two-factor authentication among others
- Be ready for IPV (in-person verification) before the account is activated in the case of offline process.
Read More : How to Open a Demat Account for Trust & Required Documents?
Conclusion
When it comes to opening a demat account with a DP, make sure that you provide the right documents and fill up the form accurately. Check the KYC and other guidelines carefully along with the reputation of the DP, fees and charges, overall track record, customer support, and so on. With the right demat account, LLPs will find it easier to deploy investments for the future, while tracking and managing them seamlessly under one umbrella.