Limited liability Partnership Registration
The Limited Liability partnership (LLP) is the most preferred form of the business structure by entrepreneurs. The LLP is the combination of both partnership and the single form of the organization. Thus the benefits of both partnership and single form of company are also combined. The concept of LLP was first introduced in India 2008. The Limited Liability Act 2008, regulates the LLP in India. Minimum two partners are required to incorporate the Limited Liability Partnership. In LLP there should be minimum of two designated partners. At-least one of the designated partners must be resident of India. The LLP agreement governs the rights and the duties of the designated partners. They are directly responsible for the compliances of all the provisions of LLP Act 2008.
Characteristics of LLP
- The LLP has less compliances and regulations.
- The cost of forming LLP is low.
- There is no minimum requirement of for the capital contribution.
- It has separate legal entity.
- LLP has perpetual succession
- The LLP Company thus formed should have ‘LLP’ as suffix.
- In LLP the partners are considered as agents for the partnership firm.
- It is an adaptive organization.
- LLP agreement provides all the necessary functions for LLP
- Minimum two partners are required.
- Proposed company must have the registered address.
- Capital should be decided.
- Every designated partners are required to have DSC
- Every designated partners are required to have DIN.
Documents required For LLP Registration
- If the proposed director and Shareholder are Indian citizen, then the following documents are necessary.
- PAN card
- Aadhaar card
- Address proof – Bank statement or Telephone bill or Mobile bill
- Passport size photo.
- If the proposed Director and the shareholder are Foreign Nationals, then following documents are necessary.
- Copy of passport
- Copy of address proof
- Copy of the nationality proof
- Two passport size photo
Register office documents.
- If the office is on rent, rental agreement is required.
- Electricity bill (Not older than two months is necessary)
- Occupant needs to provide NOC (No objection certificate) from the land lord to operate the business.
Procedure for registration
Step 1: Name Application
Reservation of name of the company is made in an application. It is done with the registrar of companies. The applicant can provide two names and can do one re-submission.
Step 2: Name approval/Rejection
The CRC (Central Registration Centre) may either get approval or may get rejection wen the application is received.
Step 3: Application for DSC
DSC can be obtained for all the subscribers and Directors of the company.
Step 4: Forms and Documents filing
Application for the LLP registration should be filed along with required document and fees.
Step 5: Certificate of Incorporation
When satisfied the ROC (Registrar of Companies) shall issue the Certificate of Incorporation.
Step 6: File LLP Agreement
The agreement should have the filing in form 3 in online MCA portal. The filing should be done within 30 days of the registration. LLP agreement should be print on the stamp paper. The value of the stamp paper differs from state to state.
Person, who subscribed to the ‘Incorporation document’ at the time of LLP incorporation, shall be the partner of LLP. New partners can also be appointed as partners according to the LLP agreement.
The partner’s economic rights is transferrable in an LLP.
An LLP shall be under the obligation to maintain the annual accounts. A ‘statement of Accounts and Solvency’ in the prescribed form shall be filed by every LLP every year with the Registrar.
The Central government may appoint the inspectors to investigate the LLP. The procedures are specified under the Act.
In the Act the provisions of Section 60 and Section 62 provide for the manner in which the mergers and the amalgamations are allowed.
Sine LLP is a body corporate, Companies Act 1956 may be applicable for the LLP.
Yes. A body corporate can become partner of the LLP.
Minimum two partners are needed. There is no maximum limit for the number of the partners.