Limited Liability Partnership is called a hybrid between a company and a partnership as it gives the benefits of limited liability of a company and the flexibility of a partnership. It is governed by the provisions of Limited Liability Partnership Act, 2008.
If you want to start your business with Limited Liability Partnership, then you must get it registered under Limited liability Partnership Act, 2008.
Minimum Requirements for LLP Registration:
i) Minimum 2 Partners
ii) DIN (Director Identification Number) for all the Designated Partners
iii) If a body corporate is a Partner, it has to nominate a natural person as its Nominee
iv) DSC (Digital Signature Certificate) for all the Designated Partners
v) There is no concept of share capital, but each Partner has to contribute towards capital of LLP
vi) Address proof for office of LLP
How to Register a LLP:
STEP 1: Apply and obtain a DSC (Digital Signature Certificate)
The first step towards registering LLP is to acquire the digital signatures of all the designated partners of the LLP. This is because all the documents for LLP are filed online and are required to be digitally signed.
STEP 2: Apply for the DPIN (Designated Partner Identification Number)
DPIN is an identification number required by a person who wishes to register an LLP or become a Designated Partner of an existing LLP. All designated partners of the proposed LLP shall obtain a Designated Partner Identification Number (DPIN).
STEP 3: Apply for the name availability and approval
To register a proposed LLP, the applicant needs to get a Limited Liability Partnership-Reserve Unique Name (LLP-RUN) that can be processed at the Central Registration Centre. However, before citing or quoting the name, it is always advisable to check from the Ministry of Corporate Affairs (MCA) portal for a free name.
The registrar will approve the name only if the name is not undesirable in the opinion of the Central Government and does not resemble any existing partnership firm or an LLP or a body corporate or a trademark.
STEP 4: Incorporation of LLP
Form for incorporation of Limited Liability Partnership (FiLLiP) is required to be filled and submitted with the registrar for incorporation of LLP. Fees has to be paid as per Annexure ‘A’.
STEP 5: File for LLP Agreement
LLP agreement is very crucial in a limited liability partnership as it determines the mutual rights and duties amongst the partners, and between the LLP and the partners. LLP agreement must be filed within 30 days of incorporation in form 3. The LLP Agreement has to be printed on Stamp Paper. The value of Stamp Paper is different for every state.
If such an agreement is not made, then the Act governs the mutual rights and duties of all partners.
Documents Required for LLP Registration:
There are two sets of documents that will need to be submitted for the LLP registration i.e. documents required of partners and the LLP documents.
Documents of Partners
All partners in the LLP will be required to submit the following:
- Identity proofs and PAN cards of all partners.
- Address Proofs of partners that includes Voter ID, passport or driving license.
- A passport size photograph against a white background.
- Passports of NRIs and foreign nationals who wish to become partners in an LLP.
Documents of LLP
Documents related to the LLP entity that need to be compulsorily submitted are:
- A proof of the registered office of address.
- A Digital Signature Certificate (DSC)
Note: This Post was last updated on March 22, 2021
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