Today, in the time where startups are on the rise, LLP is the most preferred form of organization and is chosen by most entrepreneurs and professional firms like Chartered Accountants, recruiting firms, consulting businesses, etc., even some existing ones are switching to LLP as it gives the benefits of both partnership firm and company into a single form of organization.
It is defined as a partnership that is registered under the Limited Liability Partnership Act in the office of Registrar of Companies (ROC), India. It is an alternative corporate organization type giving the benefits of limited liability of a company with the flexibility of a partnership. LLP can continue its existence irrespective of changes in partners, it can continue its existence, enter into contracts and can hold property in its name and also is liable to the full extent of its assets.
- LLP has a separate legal entity independent of its owners.
- The formation of an LLP is lower compared to other forms of organization.
- The liability of each member/partner is limited to the extent of the contribution made by them respectively.
- Flexible agreement as less compliance and regulations.
- Suitable for any type or scale of business.
Requirements to Register LLP?
If you wish to start a Limited Liability Partnership, you have to get it registered, the LLP Registration India under the Limited Liability Partnership Act,2008
The minimum number of partners required is 2, Among the partners, there should be a minimum of two designated partners who shall be individuals, and at least one of them should be a resident in India. The rights and duties of designated partners are governed by the LLP Agreement. They are directly responsible for the compliance of all the provisions of the LLP Act, 2008 and provisions specified in the LLP Agreement.
For Limited Liability Partnership Registration Online India or LLP Registration India, different forms are needed to be filled for their respective purposes like for reservation of name of the LLP , incorporation of LLP, etc., different documents required, a proper process, and also some time and cost is involved.
- Run-LLP - (Reserve Unique Name- Limited Liability Partnership)
- Form for reserving a name for the LLP
- FiLLip- Form for incorporation of LLP
For Limited Liability Partnership Registration Online India or LLP Registration India registration process involves-
- Arranging all the partner's documents
- Filling forms mentioned
- Applying for DSC and DIN
- Getting Name approval
- Preparation and verification of all documents
- File LLP Incorporation Docs with ROC
- Get LLP Incorporation Certificate
- Drafting LLP Agreement
- Filing LLP Agreement
Obtain DSC (Digital Signature Certificate)
The first step in this process is to obtain DSC of the desired partners of the LLP as all the forms are to be submitted online and therefore, require directors’ digital signatures.
Apply for DIN (Director Identification Number)
Next step in the registration process is all the directors to file for a DIN number for which the application has to be made in Form DIR-3
Apply name for LLP
In this process, you register your LLP but before that, you need to have a name and check on the free search facility on the MCA portal if the same name is already taken or not. If not go ahead with the same name, but if yes then you’ll have to look for some other name. Also, the name should not resemble any existing trademark, name, or body corporate. If found appropriate and desirable, the Registrar would approve your LLP’s name.
Incorporation of LLP
the form used for incorporation is FiLLiP which shall be filed with the Registrar having jurisdiction over the state of the registered office of the LLP. If the name that is applied for is approved and reserved, then this name shall be filled as the proposed name of the LLP
File LLP Agreement
LLP agreement is extremely important in a limited liability partnership because it determines the mutual rights and duties amongst the partners, and between the LLP and the partners.
On the LLP Registration, partners enter into the LLP agreement by filing Form 3 online on the MCA portal within 30 days of the incorporation.
LLP Incorporation Certificate
Once your application gets approved by the Registrar, next comes the LLP Incorporation Certificate. It is provided by the ROC after approval of the application.
Applying for PAN & TAN & BANK Account
After you get the incorporation certificate, you need to apply for PAN & TAN with the NSDL takes about three weeks to get completed.
Documents required to Register LLP
In the registration process of Limited Liability Partnership, documents of both the partners as well as the LLP are required. Following are the documents whose scanned copies are required :
Documents required of partners:
- PAN card / ID proof of the partners
- Address proof of the partners
- Residence proof of the partners
- Latest Bank Statement/ Electricity Bill
- Passport (in case of Foreign Nationals/ NRIs)
Documents required of LLP:
- Proof of the registered office address:
- Latest Bank Statement/Electricity Bill
- Notarised Rental Agreement
- NOC from the property owner if rented
- Property Deed if an owned property
- Digital Signature Certificate
Time is taken in Limited Liability Partnership Registration Online India or for LLP Registration India
The average time required to complete an LLP registration is about 15 to 20 working days as subject to the government processing time and the client document submission.
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