Limited liability partnership (LLP) is one of the most popular forms of business organization in India. The formation and dissolution of LLP are regulated and controlled by the Provision of limited liability partnership act 2008. Entrepreneurs with small scale operation prefers the structure of LLP for their business because the cost of forming an LLP is low, also there are very few compliances regulations as compared to other kinds of business enterprises ,In an LLP partner take decision regarding functioning and management of business. The LLP is a separate legal entity and the liability of each partner is limited only to the contribution made by the partner - To incorporate on LLP , minimum two partner are required.
However there is no upper limit on the maximum number of partner in a LLP. There should be a minimum of two designated partners are appointed to form a LLP and are primarily accountable for regulatory and legal compliance of the business. The rights and duties of designated partners are governed by LLP It's mandatory for LLP to obtain registration from ministry of corporate affair. (MCA) for legally operating their business.
Limited Liability Partnership (LLP) Registration Process:
Step1:- Obtain Digital Signature certificate (DSC) - All documents and forms for LLP registration process require to be digitally signed by designated partners. The first step toward registering a proposed LLP is to acquire digital signature certificate (DSC) of the designated partners - Documents required for obtaining digital signature certificate are:
- voter ID/Aadhar card /Driving License.
- copy of Latest Electricity Bill /Water Bill.
- PAN Card /Passport (for foreign nationals and NRIs).
- Passport sized photographs , specimen signature.
Step 2:- Apply for Director Identification Number(DIN) - Applicants must apply for allotments of DIN for all designated partners as well as , for those who want to be designated partner of the proposed LLP. The form DIR -3 is appliable to a person, who intends to become a designated partner of an existing LLP. Following documents are required for obtaining directors Identification Number(DIN).
Latest electricity bill/sale deed of the premises for self owned property similarly notarized rent agreement and NOC from owner of the premises for a rented property.
Step 3:- Apply for Name Availability - The next step while incorporating an LIP is to choose a name of company ,by using from RUN-LLP (Reserve unique Name - Limited Liability Partnership) .Before quoting the preferred name it is always advisable to check from ministry of corporate affairs (MCA) Portal for available /free names. The submitted name should not have resemblance with any already existing registered India company ,partnership firm, trademark, or body corporate .If the submitted name is approved by MCA ,then this approved and reserved name shall be used as the proposed name of the LLP.
Step 4:- Apply for LLP Incorporation certificate - After the approval of proposed name ,it will be reserved for a period of twenty days, within which the company must proceed for incorporation by filing form Fillip(form for incorporation of limited liability partnership). It is an integrated form which also provides facility to apply for DPIN and Reservation of name DPIN(Designated partner Identification Number) is an unique number allotted by the MCA to the designated partner of LLP. DPIN can be obtained by any individual while registering an LLP or anytime here after form for incorporation of limited liability partnership(Fillip) is required to be filled and submitted for approval to the registrar of incorporation (ROC) of registrar. Which may vary from state to state. Once the application form and documents are verified by authorities the Registrar of companies(ROC) issued a certificate to Incorporation for LLP. After getting LLP registration certificate from ministry of corporation affairs (MCA). The LLP will be registered and will be entitled to all the benefits of a registered LLP.
Step-5:- Draft LLP Agreement - LLP agreement is a document that's charts out the rights and responsivities of all the partners in the business entity. The partner enter into a LLP agreement upon registering the LLP by filing form -3 online on MCA portal. Form -3 of LLP agreement has to be filed within 30 days from the date of incorporation -LLP Agreement shall be executed by payment of stamp duty as applicable in accordance with the sate ,where the LLP's formed. The agreement should be notarized after producing the signature of all partners along with witnesses into agreement.
Step -6:- Opening a current Account - After obtaining LLP registration certificates the required to open a current account in the name of LLP and operate all the transactions through this book account.
- Voter ID/Aadhar card /driving license.
- Copy of latest electricity bill/water bill.
- PAN Card /passport for foreign national and NRTs.
- Documents Required for business address proof.