Limited Liability Partnership Firm

What is Form 4 for Limited Liability Partnership?

calendar10 May, 2023
timeReading Time: 16 Minutes
What is Form 4 for Limited Liability Partnership?

Every appointment, cessation, and change to a designated partner’s name, address, or designation requires the submission of Form 4. It is very necessary to commit to memory the particulars of the procedure that must be followed in order to submit these papers. There are some circumstances in which the MCA LLP 3 and MCA Form 4 LLP have to be filed individually, while there are other circumstances in which they have to be submitted together. This article addresses issues such as “What is Form 4 for Limited Liability Partnership in reality?” and provides answers to other similar inquiries. A description of limited liability partnerships is also contained in the Form 4 for Limited Liability Partnership.

The following are a few different examples of hypothetical situations in which the answer to the same issue may be proven:

  • You are required to send in both the Designation and the Change in Nominee forms even if you just want to make a change to a single one of these forms.
  • When just the Appointment or only the Cessation form is needed, the identical forms as those used for the related forms need to be filed.
  • You should combine the filing of the documents if you need to carry out both the appointment and the cessation processes.
  • You are needed to submit the several kinds of paperwork in order to successfully effectuate a combined Appointment/Cessation and Designation/Nominee Change.
  • Form 3 and Form 4 for Limited Liability Partnership are linked to one another. There is an extra filing fee that must be paid if you are submitting with an appointment or cessation change in designation or a change in the Nominee Form 4.

Considerations That Are Important When Filling Out the Form for the LLP

Below we have provided some factors that must be considered by every LLP and their partners before beginning to fill out the forms. Make sure to go through the instructions and carefully implementing them while putting them to use:

  • Make sure that you have thoroughly read all of the directions and criteria before beginning to fill out any online application forms.
  • When submitting the needed obligatory supporting documents, please ensure that you only utilise the format that has been stated for the file.
  • Make that the applicant has already registered as a business user on the MCA site before you allow them to submit a webform to the MCA.
  • The LLPIN that is entered into the webform must be genuine for the limited liability company that is registering.
  • Check to see whether the DSC you’ve connected to the webform belongs to the same LLP as the one for which you’re filling the webform.
  • In order to avoid being disqualified, it is important to check that the DPIN of the Designated Partner is not flagged for disqualification in the way that it appears on the webform.
  • Check to see whether the DSC you submitted in the webform has been registered correctly with the MCA website by using the DIN/DPIN/PAN/Membership number that you have given.
  • Please be aware that the signing authority for the webform has to have a DSC that is current, not expired, or revoked, as well as a valid DIN, DIN, or PAN.
  • All event dates (date of appointment, date of change in designation, date of cessation, date of change in nominee, etc.) need to be within 30 days of the filing date in order to be included on this webform. If the event date is more than 30 days in the future, a new form has to be filed.
  • If you intend to report information regarding two or more incidents (such as the cessation of an appointment) involving the same person, you are required to submit additional forms. It is not possible to send in both forms using the same submission method.
  • It is necessary to submit both this form and LLP Form No. 3 in order to modify the agreement in the event that there is a change in the LLP’s Designated Partners or Partners (i.e., appointment or cessation). The information that is needed by LLP Form No. 3 to be provided on LLP Form No. 4 must be included on all Designated Partners and the other Partners.
  • After making any required revisions in line with Form 4, the Designated Partners of the LLP need to include at least one Indian native or permanent resident. This requirement comes into effect after all relevant modifications have been made. In order to be deemed a resident of India, an individual must have spent a minimum of 182 consecutive days inside the nation throughout the course of the preceding calendar year.
  • Kindly take into consideration that this form can only save the details of up to 500 designated partners and partners. The user is required to resubmit LLP Form No. 4 in order to include information on any new Designated Partners or Partners if the total number of Designated Partners and Partners is more than 500.
  • It will not be possible to submit this form if there is already another Form 4 for the LLP that is either waiting for a fee payment or is being processed.
  • As it is known that an LLP must have at least 2 partners, In the event that the number of Designated Partners in an LLP drops below two, the LLP will be unable to submit any documents to the LLP site for a period of six months after the cessation or change in designation of any of the Designated Partners.
  • You always have the option to upload a file that contains more information if you require more room to explain something than the web form’s text fields provide for you to do so.
  • Check the “Notifications and alerts” section of the “My Workspace” page on the MCA FO user dashboard to see if any new notifications have been produced.

Application to Have Access to the Form 4 for Limited Liability Partnership

Instructions for Completing the Form 4 for Limited Liability Partnership:

Submission at the initial stage, this has two alternative options. The first alternative is as provided below with few steps:

  1. Navigate to the website of the MCA[1].
  2. The next thing you need to do is log in to the MCA website using your credentials.
  3. Once you have located “MCA services,” go to “E-Filing.”
  4. The “LLP Forms Download” option may be found in the 4th step of the process.
  5. Accessing the “Notice of Appointment, Cessation, and Change in Name/Address/Designation of a Designated Partner or Partner and Consent to Become a Partner/Designated Partner” is required.
  6. If you like, you may fill out the LLP Information in the form.
  7. Conduct a Search Within the LLPIN4 Database
  8. I if you want to complete it, pick “LLPIN” from the list.
  9. The ninth step is reached by completing the fifth application.
  10. Before proceeding to the next step, save the webform as a draft.
  11. Next step is the submission of the Web Form.
  12. After submitting the webform, an SRN will be produced for the user (the SRN may be used by the user for any future communication with MCA).
  13. Next Step is to sign up for the DSC.
  14. At this step, upload the PDF that has been stamped with the DSC stamp to the MCA’s online system.
  15. If the user does not pay the fees within 15 days of the SRN being formed and within 7 days of successfully uploading the DSC-affixed PDF, or by the submission deadline plus two days, whichever comes first, the SRN will be cancelled, if the user does not pay the fees within 15 days of the SRN being formed.
  16. Finally in this step the manufacture of an acknowledgement will be done.

Out of the two alternatives the below provided steps are to be followed if you prefer to choose the second alternative:

  1. Navigate to the website of the MCA.
  2. The second step is to use the MCA online search box to look for Form 4 for Limited Liability Partnership.
  3. Next it asks you to enter your credentials so you may visit the MCA website.
  4. Finish filling out the LLP Data Optional
  5. Search the LLPIN database using your criteria.
  6. In this step, you have the option of selecting LLPIN from the drop-down selection.
  7. Filling out the Application Form is the next Step.
  8. You have the option of saving the webform as a copy on your computer.
  9. The webform has to be submitted when you get to next step.
  10. Then after submitting the webform, an SRN will be produced for the user (the SRN may be used by the user for any future communication with MCA).
  11. Attachment to the DSC.
  12. Then on the MCA website, upload the PDF that has been stamped by the DSC.
  13. After proceeding to next step and make a payment (The SRN will be revoked if the user fails to submit the PDF with the DSC attached within 15 days after the creation of the SRN and complete the payment within 7 days following the successful upload of the document with the DSC affixed, or the due date of filing the form plus 2 days, whichever is sooner).
  14. The next step involves the making of recognition, which then produces the acknowledgment.

The following are the instructions for completing of the “Form 4 for Limited Liability Partnership” at ground level:

The “Form 4 for Limited Liability Partnership” has a number of fields that need to be filled out, and the accompanying table provides instructions for doing so. Only the most significant topics that need for extensive education are covered in this guidebook. Undefined refers to areas that may be understood on an instinctive level.

  1. A Limited Liability Partnership Identification Number (LLPIN). The user must submit an LLPIN that is both legitimate and approved. The LLPIN input box will be pre-populated with information that the user has previously supplied about the LLP. In order to do a search of the LLPIN, you will need to know the name of the LLP. If you just have a section of an LLP’s name, you may still search for it using the LLPIN even if you have that. In regards to the Limited Liability Partnership (LLP), you could be asked to submit the following information: Email: [email protected], [name of the LLP], and [registered office address of the LLP] These fields will be populated using the information that is found in the column labelled “Limited Liability Partnership Identification Number (LLPIN)” which is located in section 1 (a).
  2. Indicate the total number of designated partners and Partners on whose behalf this webform has to be submitted. The value that you provide in this box will determine the percentage of available spaces for you to fill in with the information of your choice. On this form, you may only specify a maximum of 500 Designated Partners in addition to other partners. Users whose LLP has more than 500 partners are required to resubmit Form 4 for Limited Liability Partnership in order to include any newly appointed Designated Partners and other partners.
  3. Information pertaining to the Designated Partner(s) on behalf of whom this form is being submitted:
    • Check the relevant box (or boxes) to specify the purpose for which the form will be used.
    • You are only allowed to pick ‘Appointment’ OR ‘Cessation’ from this drop-down selection if you are also completing LLP Form No. 3, which means that you must file both of these forms together.
    • If the form is being submitted on its own, values other than ‘Appointment’ and ‘Cessation’ might be chosen in the space that has been made available to do so.
  4. In the case of an appointment, cessation, or change in designation, the date the event occurred should be inserted into this space. This date has to be earlier than or on par with the date stored in the system.
  5. In the Event That the Demand Comes Up If the value that is placed into the area that is labelled “Number of individual Designated Partners for whom this form is being filed” is more than zero, the field that is titled “In Designation to Designated Partner, DPIN / Income tax PAN / Passport number of Partner” will be shown and will have its contents automatically completed.
  6. Please supply the DPIN, PAN, or passport number of any partners who are actively involved in the LLP’s filing. If your partner’s nationality is not “India,” you will need to input their passport number here.
  7. The number denoting the partner, often known as the DPIN: ii. If “Cessation” is chosen in this field, “The form is being filed for,” then this field will be pre-populated and it will not be possible to alter it based on the LLP IN/ CIN/ FCRN/ FLLPIN/ other identifying number. In any other circumstance, you need to write free-form content in this area.
  8. If “DIN” is typed in Field 3(d), which says “In case of designation change to Designated Partner, PAN / Income-tax PAN / Passport Number of Partner,” then it has to match the field in which it appears. The DIN of each DP and Partner must be entered individually, including the information provided for a corporate nominee serving as DP or Partner. If ‘Change in address of body corporate’ or ‘Change in name of body corporate’ was chosen in the ‘This form is being filed for’ section, then the only choices available in the ‘Type of body corporate’ area will be those that are stated below.
  9. Company Incorporation outside India (CIOI), Limited Liability Partnership (LLP) Incorporation Outside India (LIOI). Identification numbers such as the Company Identification Number (CIN), the Foreign Company Registration Number (FCRN), the Identification Number for Limited Liability Partnerships (LLPIN), the Identification Number for Foreign Limited Liability Partnerships (FLLPIN), or any other identification number:
  10. Indicate whether the firm is a corporation or a foreign business by inputting its Corporate Identification Number (CIN) or Foreign firm Registration Number (FCRN), respectively. Enter the Limited Liability Partnership Identification Number (LLPIN) or the Foreign Limited Liability Partnership Identification Number (FLLPIN) if the company corporate in question is a limited liability partnership.
  11. A labelled “Type of body corporate,” has to have a valid CIN, LLPIN, FCRN, or FLLPIN in it, depending on the kind of organisation that was chosen. The value that is recorded in a block of repeated corporate entities both as DPs and as partners must be separate from one another. A corporation is required to have an affiliation with a limited liability partnership (LLP) in any circumstance that does not entail making an appointment.
  12. Nominee DPIN 1-The Name of the Signer and Their Contact Information (if they are different from the Signer): If “Cessation” or “Change in designation” is chosen for the field labelled “The form is being filed for,” then the LLPIN, CIN, FCRN, FLLPIN, or another identifying number will be entered automatically. In any other circumstance, you are required to leave this area blank. Enter the candidate’s DIN number here if the “Change in designation” item is already checked and the company already has that number on file for the nominee. It is required that every DP and partner involved in a repeating block have their own distinct DINs, even if they are acting as a designee of an entity corporate.
  13. Primary Registration Country (Country of Origin)
    • The number of companies acting in the capacity of partners or nominees that are submitting this form is more than zero.
    • The LLPIN, CIN, FCRN, or FLLPIN will be used to automatically fill in this form.
    • Under “Type of body corporate,” if “LLP Incorporated outside India (LIOI)” or “Company Incorporated outside India (CIOI)” is chosen, India will not be an option.
    • Before completing this webform, you are required to complete Form DIR-6 in order to address the situation in the event that the partner’s current domicile status is shown in the MCA21 portal in an inaccurate or missing format.
  14. Put a checkmark in the box (es) that relate to the form’s primary function. If you submit this form together with LLP Form No. 3, you can only choose ‘Appointment’ OR ‘Cessation’ as your action. It is possible to put a value in this area that is neither “Appointment” nor “Cessation” if the form is being submitted on its own initiative.
  15. The checkboxes for “Change in nominee” and “Change in designation” cannot both be ticked at the same time.
    • The number of the DPIN will be used to automate the process of filling up this form.
    • Users who self-identify as Indians are prohibited from using a first name consisting of a single letter.
    • You are required to supply either the first name or the last name of the partner.
    • Using the PAN, the partner’s identification has to be confirmed before proceeding.

Various Other Directions for Completing the Form 4 for Limited Liability Partnership

  1. Select a file to upload in support of Form 4 for Limited Liability Partnership by using the ‘Choose File’ option, then selecting a file from your local computer.
  2. To be clear, you do not have to fill out this section.
  3. You are only allowed to attach files in PDF or jpeg format. The maximum size of a file that may be uploaded is 10 megabytes (MB).
  4. In the attachments part of the form, the user has the option to simultaneously upload numerous files if they so wish. The user is able to remove a file from the attachments section by selecting it and then selecting the “Remove” icon that shows next to each file.
  5. The viewer may receive the attachment by clicking the “Download” button that is located next to each one. 
  6. If, before submitting the webform, you would want to return to an earlier drafting of your application, you may do so by clicking the Save button at any time throughout the process of completing the form.
  7. Only the “Save” icon will become activated if the LLPIN has been entered successfully.
  8. This part is completely optional for you to complete. When a webform is saved, all data entered into it is immediately stored and may be edited right up until the point when the form is submitted.
  9. You are able to recover draughts that you have previously saved thanks to the history function of the programme.
  10. This particular field must be filled in. If an error is found in any of the webforms (LLP Form No. 3, 4, or 5), the user will be routed to the webform, and after the “submit” button has been pressed, any pertinent error messages will be shown.
  11. When webforms are published, the submission will be considered successful if the system does not find any mistakes throughout that process.

Attachments with the Form 4 for Limited Liability Partnership

Letters of termination from work, letters of resignation, and copies of death certificates are included in Form 4 for Limited Liability Partnership.

Form 3 – Amended LLP Agreement must be submitted with stamp paper denominations that have been authorised by the state.

In some circumstances, you will be required to submit the following forms:

  • You are need to submit a new form, even if the only modification you intend to make is to your nomination or designation.
  • If just the Appointments or Cessation sections are to be filled out, the Forms must be presented as a set.
  • If you are required to submit both the Appointment and Cessation forms, you must do so as a single document. This rule applies only if you are required to submit both forms.
  • If you want to schedule an appointment, a cessation, a change in the candidate’s designation, or both, you are required to provide the appropriate paperwork.

The following information has to be given when completing Form 3 and Form 4 for Limited Liability Partnership in a separate transaction:

The following factors should be considered by you when deciding whether or not to file Form 4 for Limited Liability Partnership separately, and when they should be considered:

  • You are required to send in both of these forms if you want to make a change to either the Designation or the Nominee but not the other.
  • If all you need to do is seek a cessation or make an appointment, you may get by with using the same forms as those mentioned above.
  • If it is essential to have both an appointment and a cessation, then both of them need to be presented at the same time.
  • In the event that you need to appoint, remove, or amend a person’s designation, you are required to submit the relevant paperwork.
  • Forms 3 and 4 must be submitted together with the appointment or cessation.
  • This new substitution Form 4 contains a newly proposed nomination as well as a designation.

Along with the Form 4 for Limited Liability Partnership (LLP), the following information and documents are required to be submitted:

  • Authorization to act as a partner or designated partner.
  • An affidavit or other evidence proving that the partner’s name has changed (necessary to amend the partner’s name).
  • Formal proof of cessation (required of all partners and designated partners).
  • When a corporation is to become a member of an LLP, the application must be accompanied by a copy of the resolution on the letterhead of the same corporation appointing it as a partner in the proposed LLP. Additionally, the application must be accompanied by a copy of the resolution or authorization of this corporate body, also on the letterhead, stating the name and address of the person who has been nominated to serve as the nominee or designated partner on its grounds.
  • Form 4 for Limited Liability Partnership should be filled out and sent in.
  • Form 4 must be provided whenever a designated partner is appointed, dismissed, or whenever there is a change in the partner’s name, address, or designation. In a similar vein, it is very necessary to pay careful thought to the format that these papers should be submitted in. In addition, we are required to file forms MCA LLP 3 and MCA LLP 4 in either of two ways, either separately or as part of a connected set, depending on the specifics of the situation.

The following information pertains to the Partner Admission MCA LLP Form Fees that are owed to the government when completing Form 4 to become a member of an LLP.

  • The maximum contribution that may be made to a Limited Liability Partnership is Rs. 1,000,000 which shall require a fee of Rs. 500.
  • A Limited Liability Partnership (LLP) that contributes between Rs 5,00,000 and Rs 1,00,000 would have to pay a fee of Rs 2000.
  • Partnerships with contributions ranging from Rs 10,00,000 to Rs 5,00,000 would have to pay a fee of Rs 4000.
  • A Limited Liability Partnership may be established for more than 10,00,000 would have to pay a fee of Rs 5000.

Electronic Signature of the Designated Partner of the Limited Liability Partnership (LLP)

The approved partner of the LLP is required to provide a digital signature on the electronic form. When an electronic form is submitted for the cessation of a partner or a designated partner, the individual who signs the form cannot be the same person whose name is being submitted. Instead, the person who signs the form must be someone else. Include the DPIN, often known as the partner identification number, of the designated partner.

The LLP Certificate necessary for Form 4 for Limited Liability Partnership

Chartered accountants, cost accountants, and business administrators who are currently in practise are required to certify the legitimacy of the e-Form by digitally signing it. If the expert is a fellow or associate member of the organisation, choose “fellow” or “associate” from the drop-down menu.

It would be helpful if you could supply the individual’s current membership number so that we can verify that they are either a certified public accountant or a cost accountant. If a company secretary works as a full-time professional in their field, they are required to provide their certificate of practise number.

What is the difference between Form 4 and Form 4A?

Difference between Form 4 and 4A is as Provided Below:

As of the 15th of October 2015 announcement from the Ministry, Form 4A (addendum) is connected to Form 4. If there are more than 200 partners and Form 4 is submitted, then Form 4A has to be filed for each new partner.

Points To be considered for Submission:

Notice of Appointment of a Designated Partner or Partner, Cessation of a Designated Partner or Partner, Name/Address/Designation Change of a Designated Partner or Partner, and Consent to Become a Designated Partner or Partner: The standard rates are listed in the first table that may be seen below

S no. Small LLPs/Other than Small LLPs Fee applicable INR
1   For small scale LLP 50  
2 For LLP those are other the small scale LLP’s 150

Penalties for Submitting Forms after the Deadline

There is an extra charge that must be paid by small LLPs. LLPs who do not meet the criteria to be classified as “Small” are responsible for making an additional payment in INR differently.

  • Maximum of 15 days: The filing fee is equal to this amount after it has been paid. The filing fee is equal to this amount after it has been paid.
  • When it is delayed longer than 15 days but less than 30 days. The filing costs are twice as high as the standard. The standard filing costs is 4 times the actual filing fee for LLP’s other than small LLP.
  • Greater than 30 days but less than 60 days: 4 times of normal filing fees and 8 times of normal filing fees
  • Longer than 60 days but less than 90 days 6 times the price of the standard documentation Costs for filing that are twelve times higher than the standard
  • After an initial term of at least 90 days and continuing for up to 180 days A cost that is ten times that of the normal documentation A cost that is twenty times that of the normal paperwork
  • Greater than 180 days but less than 360 days in total duration 15 times more expensive than the typical paperwork 30 times more expensive than the typical paperwork
  • The first filing fee will increase by a factor of 25 once the initial 360 days have passed. Compared to average costs, filing fees are 50 times higher.

Conclusion

As is seen throughout the article, the Form 4 for Limited Liability Partnership provides the LLP with a number of benefits. The decreased administrative complexity and burden that is involved with the establishment and operation of a limited liability partnership (LLP) is the major benefit of using this kind of business structure. The costs are lower than those that are incurred by companies. In the same way that corporations do, limited liability partnerships (LLPs) are permitted to function independently of their partners. The initial investment required for a limited liability partnership (LLP) could not be anything at all. The liability of each partner in a limited liability partnership (LLP) is restricted to an amount equal to their share of the total income generated by the partnership. There is no need to conduct an audit. The yearly ROC compliance requirements for a Limited Liability Partnership are lower than those for a Private Limited Company, and because to the LLP’s flexibility in structure and operation, it is an appropriate vehicle for both small firms and investments in venture capital. Form 4 has to be provided whenever there is a change in a partner’s name, address, or designation, as well as if a designated partner is appointed, dismissed, or their status changes in any other way. It is necessary to complete Form 4 with the authorization of the Designated Partner.

Read Our Article: How To Register Your Limited Liability Partnership Firm In India?

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