Limited Liability Partnership

The word LLP holds immense significance in the corporate world and refers to Limited Liability Partnership which differs from Private Limited Company and General Partnership in terms of liability, protection and cost.

  • Two DSC & up to two DINs
  • Name Reservation
  • LLP Agreement
  • LLP PAN & TAN
  • Current bank account opening
  • Free assistance regarding  compliance requirement after LLP Incorporation over LLP

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LLP Registration

Limited Liability Partnership is a type of partnership firm which is more preferred by entrepreneur. More and more entrepreneurs are incorporating their companies as a Limited Liability Partnership firm. It is the easiest form of business structure with various benefits such as limited liability. Let us know more about its features and registration.

What are LLPs?

LLPs or Limited Liability Partnership is a type of alternate corporate business structure which offers some extra benefits than a simple partnership firm. It provides limited liability to its partners at very nominal compliance costs. Moreover, the Partners of the firm can organize their internal structure like an old partnership firm.

In short, LLP is not less than a legal entity that has the power to extend all its assets while the liabilities of partners are still limited. Hence, a Limited Liability Partnership is a hybrid of a company and a partnership firm.

Features of a Limited Liability Partnership Firm

  • Corporate Body

    As per Section 3 of the LLP Act, 2008, a Limited Liability Partnership firm is considered as a corporate body incorporated under the respective act.

  • Never Ending

    AA Limited Liability Partnership firm has a benefit of perpetual succession and can continue its existence even after the retirement, death, insanity of one or more respective partners in the company.

  • Limited Liability

    The most important feature of LLP is limited liability to all the partners which means their personal assets are safe and won’t be used to pay the losses or debt of the company. Apart from it, innocent partners of the company are not liable to the wrong deeds done by some other partner.

  • Least requirements

    A person can start an LLP firm with just two partners out of which one should be an Indian resident. The designated partners can be either individuals or a corporate body. Moreover, there is no specific capital requirement to incorporate a limited liability partnership firm.

  • The LLP Agreement

    An agreement is printed on a stamp paper and signed by all the partners of the company that defines their roles and duty in the firm. It helps them to make mutual decisions without any conflicts and disputes.

  • Easy Online Registration and E-filling

    MCA has simplified LLP registration and made it an easy online procedure. The forms and the documents are filed electronically on the official MCA portal. A designated partner has to obtain DSC to sign these documents and forms.

  • Easy Conversion

    If a public or private company or a partnership firm decides to emerge as a limited liability partnership, they can easily convert as per the provisions of the applicable act.

  • Business Management

    The business is managed by the respective partners as per their roles and duties and the designated partners of the company are responsible for the legal compliances.

  • Profit Sharing Business

    Profit is equally shared amongst all the partners. An LLP cannot be incorporated for a charitable purpose and can carry on its business activities with an aim to earn profit.

Types of Forms applicable for LLP Registration

Name

Purpose

RUN-LLP

A Form for the reservation of name for the firm.

*FiLLiP

Company Incorporation

Form 5

A notice for the change of name.

Form 17

An application for the conversion of a firm into an LLP.

Form 18

An application for the conversion of a private or a public company into an LLP

Documents Required for LLP Registration

Documents for the partners of the company

Documents for the firm

PAN Card

Residential/ Address Proof

Identity Proof

DSC or Digital Signature Certificate

Residence Proof

 

Pass-port sized Photographs

 

Passport

 

Documents for the Partners

  • Pan Card/ identity proof:

    all the partners of the firm have to provide their PAN card at the time of LLP registration. It also works as a primary identity proof.

  • Residential proof:

    respective partners can submit any documents including their passport, Aadhar card, driving license or voter card. Make sure the details of the residential proof matches with the PAN card. In case there is a spelling mistake, get it corrected before the submission.

  • Passport size photographs:

    All the partners have to provide their passport size photographs with a white background.

  • Passport:

    it is mandatory for the NRIs and foreign nationals to submit their passport at the time of registration. The passport should be notarized by the relevant authorities or else can be done by the Indian embassy situated in the respective country.

Apart from it, they have to submit a residential proof and if it is in some another language than English, attach a notarized or translation copy along with the documents.

Documents for the Firm

  • Residential/ address proof:

    An applicant requires to submit the residential proof of the registered office during or within 30 days of the registration. In case the registered office is on rent, a rent agreement along with the NOC (No Objection Certificate) has to be submitted.

    An applicant can submit any of the utility bills such as electricity, telephone, the gas bill for the residential proof. Make sure the bill is the latest one and not older than two months and contains the complete address of the concerned premises.

  • DSC or Digital Signature Certificate:

    any of the designated partners of the company can opt for a DSC that would be required to sign all the forms on a digital platform.

Procedure for LLP Registration

LLP registration is an easy online procedure that can accomplished within 4 registration steps and 3 post incorporation steps. Here is details step by step guide for Limited Liability Partnership firm Registration:

  • Obtain a Digital Signature Certificate

The first step is to obtain the DSC for a designated partner of the firm. DSC is important because LLP registration is an online process and all the documents are to be signed digitally. The designated partner has to obtain their DSC from the government recognized agency. The cost may vary from agency to agency. Make sure to obtain a class 3 or class 2 DSC certificate.

  • Obtain a DPIN for all the partners

DPIN or Designated Identification Partners Number is mandatory for all the designated partners. Form DIR-3 is filed to obtain DPIN. The applicant has to attach a scanned copy of Aadhar card and PAN card along with the form and should be signed by the company’s secretary or by the Managing Director/CFO/CEO in which he/she is appointed as a director.

  • Company’s name

The third step involves reserve a name for the incorporating firm. For that, an applicant has to file LLP-RUN form. The name should be unique and does not match with any other emerged company. For this, you can have to use the free name search facility available on the MCA Portal. The system is quite helpful and provides a list of names resembling with your company’s name. This would help you to select an appropriate name. An applicant can provide up to 2 names that would be further analyzed by the registrar of companies. In case of rejection/objection, you can re-submit your form after 15 days of the rejection.

  • Company’s Incorporation

Once the name has been reserved you can move ahead to the incorporation of your LLP. For this, you have to file FiLLiP i.e. Form for incorporation of Limited liability partnership. It is filed with the registrar of the companies of the respective state in which the registered office is situated. Application has to pay a particular amount of incorporation fees as per the Annexure “A”.

All the documents and applications are duly checked by the authorities and if all goes well, incorporation certificate is issued to the company.

Post Incorporation Compliances

Just like registration procedure, post compliances are also important for the company. Once the company has been incorporated, you have to fulfill post incorporation compliances that are for a single time only.

·  LLP Agreement

LLP agreement is an important document that defines the rights and duties of all the respective members. It helps to avoid future conflicts and disputes in partners and hence maintains peace and prosperity in the company.

It has to be filed on the MCA portal within 30 days of LLP incorporation. It shall be printed on a stamp paper and signed by all the partners of the company. Value of the stamp paper varies from state to state.

·  PAN and TAN

Apply for PAN and TAN after the incorporation because without it, the company cannot open a bank account for carrying out further transactions.

·  Open a Bank Account

Once you have got your PAN, open a bank account at the name of your company to carry out financial transactions.

Total fees and time for LLP registration

It usually takes around 15 days to complete the whole process starting from obtaining a DSC to submission of LLP agreement. The fees may vary from state to state whereas we have provided you an estimate of different government forms as follows:

Forms

Estimated fees

Digital Signature certificate

Rs 1500 to Rs2000 depending upon the agency

Director Identification number

Rs 1000

Reserve Unique Name/ Name Reservation

Rs. 200

Company Incorporation

As per the capital contribution:

a.     For the contribution up to Rs 1 lakh- Rs 500

b.    For the contribution up to Rs 1 Lakh to Rs 5 lakh- Rs 2000

LLP Agreement

As per the capital contribution and stamp duty charges of a different state.

 

Frequently Asked Questions

Individuals, company or foreign national can become a partner in a Limited Liability company.

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