What is a Limited Liability Partnership
Limited Liability Partnership(LLP) has the feature of both partnership firm as well as a corporation. The partners of LLP company will not liable for paying off the debts of the company from his/her personal assets. There can be more than two partners in the firm. Therefore, they are not responsible for any of the misconduct by others. For LLP registration, one needs to go through certain steps. In this article, we will discuss the LLP registration process.
You might also be intrested for the company incorporation procedure
Many entrepreneurs are nowadays choosing limited liability partnership for carrying on their businesses. It is governed under the limited liability partnership act 2008. Although, LLP was introduced in April 2009 in India. Its legal entity is separate means can be sued or sue other business entity. Moreover, acquire property by its name.
Some of the examples of LLP in India are Knowledge Media Venturz LLP, MOC Music Studio LLP, R.R Spaces LLP, Chopra Infra LLP, Mihir Space Limited Liability Partnership etc. LLP is not only confined to India but its existence is worldwide such as Australia, the United Kingdom etc.
LLP registration process
LLP registration process includes the following steps:
Step 1: DSC ( Digital signature certificate)
The first and foremost step before the registration is to apply for the digital signature of the partners of the proposed LLP. As all the documents of the LLP will be filed online so it must be digitally signed. Every Partner can obtain his/her DSC from certifying agencies recognized by the government. There are two classes from which you can choose your category like class 2 or class 3 of DSC. Click here for DSC Registration.
Step 2: DIN ( Director Identification Number)
Secondly, It is mandatory to apply for the DIN of all partners in the proposed LLP. Earlier it was DPIN (Designated Partner Identification). But no longer now. For the allotment of DIN, Form DIR-3 has to be filed along with the scan copy of the documents. The form shall be signed by the chartered accountant, company secretary, cost accountant or advocate. Designated partners shall follow the entire LLP registration process.
Step 3: Reservation of Name
Form 1 will be filed for the reservation of the name of a proposed LLP. Before finalizing the name of the LLP it is necessary to check from free name search facility on MCA Portal. This portal will help you to show you the existing LLP name if any. You can provide six names in the order of preference in this form. The name of the LLP will be approved by the central government only they will found it undesirable. No partnership firm/corporate/ trademark of the proposed name will carry on business by this name. For further deep knowledge of the reservation of the name, you can follow our blog.
Step 4: Incorporation of LLP
To get the LLP incorporated, you have to file form-2 by keeping the following things in mind:
- The details in the form must be correct
- the payment of the prescribed fee on the contribution of all the partners
- all the forms must be digitally signed by a person as a partner having DIN. Besides, all the documents must be digitally signed by the CA, CS, Cost accountant in practice.
- If the registrar is satisfied on the submission of the form then the LLP will be registered.
- It takes around 15-20 days for the registration of LLP. The government processing takes time in the submission of necessary documents.
Step 5: File LLP Agreement
It is important to govern the mutual rights and duties among the partners. The understanding between the partners is a must and also between the LLP and its partners. You can file LLP agreement online form-3. The deadline for filing this agreement is 30 days after incorporation. The LLP Agreement has to be printed on stamp paper. The value of Stamp Paper is different for every state.
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