There are different forms of companies that you can establish in India, here we will be discussing LLP or Limited Liability Partnership Firm and steps to successfully incorporate or register LLP in India.
Before heading further, let us understand what is LLP?
LLP form of business offers the benefits of Limited Liability and at the same time, it gives the firm flexibility of being a partnership firm. LLP has relatively lesser compliance procedures, also, a fewer returns need to be filed as compared to other forms of business. For a smaller LLP, there is no need of audit and the compliance procedure depends on information declared by the partners.
Process of LLP Registration:
But before you proceed for registration there are major requirements that need to be fulfilled:
1. Getting Digital Signature Certificate - Every Registration documents of LLP are filed electronically. Digital signatures of the Partners of the firm are required to file the application form for Registration. DSC can be obtained from any of the government-approved vendors like TCS, e-Mudra etc.
2. Getting Designated partner Identification number (DPIN) - Once you have the DSC in place, the next important step is obtaining Designated partner Identification number. This is a unique number which is allotted to the Partners or designated partners of LLP.
3. Getting the name Approved - This is the third and the most important step is reservation of Name. The LLP needs to get its name approved by Registrar of Limited Liability Partnership, while deciding the name of the LLP, it should consider the parameters specified under the naming guidelines like the name of the company should not resemble or match with the name of other registered firms. E-Form-1 needs to be filled for application for reservation of name of the LLP. Minimum of proposed Partners name should be filled in the form for reservation of name.
4. LLP Incorporation - For getting certificate incorporation of Limited Liability Partnership, Form-2 must be submitted followed by a subscription form. The form contains details about designated partners, their id proof, the address of Limited Liability Partnership, Consent of all the partners etc. Once all the documents are verified by ROC, certificate of incorporation is issued. After successful incorporation, every LLP is issued with LLP identification number or LLPIN.
5. LLP Agreement - Within 30 days of incorporation, the LLP agreement must be filed in e-form 3, this has to be submitted to the Registrar. The agreement must be executed on a requisite value of stamp paper as per the requirement of respective state Stamp Act.
- What does LLP Agreement contain?
- The LLP Agreement entails information about the governing rights and duties of the partners. It contains the name of the LLP, name of the partners and designated partners, profit and loss sharing ratio of partners, the objective of business rules about the operations of LLP. LLP Agreement also contains subscription sheet. This sheet is subscribed by the partners of the LLP firm. It must be done in the presence of CA or CS
Documents required for incorporation of LLP:
The following documents needs to be submitted to register an LLP:
1. PAN Card of the partners and Passport in case of foreign national
2. Address Proof- Aadhaar Card, Voter ID, Driving License, Passport, Bank Statement, Electricity Bill, Telephone Bill (any one of these)
3. Utility Bills of the registered office of LLP.
4. NOC from landlord of the preemies where the registered office of LLP will be situated.
5. Rent Agreement between LLP and Landlord, if any
Our Role: EmpressaLegal.com will help you understand the nitty-gritty of LLP incorporation. If you wish to know more about LLP registration, you can get connected with us.
Disclaimer: Statements and opinions expressed in articles are those of the author's personal views.
About the author: Satyendra Kumar Mishra
Satyendra Kumar Mishra is the founder and CEO of EmpressLegal.com which was founded with the singular objective of offerings the highest quality corporate and incorporation services to its clients all over the globe. Since its foundation, EmpressaLegal.com has helped entrepreneurs across India to incorporate their businesses in a fast and secure manner.