LLP has been introduced in India by way of Limited Liability Partnership Act, 2008. The basic premise behind the introduction of Limited Liability Partnership (LLP) is to provide a form of business organization that is simple to maintain while at the same time providing limited liability to the owners. A Limited Liability Partnership combines the advantages of both the Company and Partnership into a single form of organization and one partner is not responsible or liable for another partner’s misconduct or negligence.
Minimum Requirements for LLP
- Minimum 2 Designated Partners (DP)
- At least 1 of the DP shall be Indian resident
- If a body corporate is DP then it has to nominate a natural person
- Director Identification No.(DIN) has to be obtained by 2 partners
- Digital Signature Certificate of any one of the DP
Firstly you need a DIN or DPIN
Director identification number or the designated partnership identification number is required. It is obtained by filing DIN-1, available online at MCA web portal. It is mandatory for every director of the firm. You will also require documents stated below while registering for DIN or DPIN.
Get documents for LLP Registration form.
- Identity proofs of all the designated partners.
- PAN card of all the designated partners.
- Address proof of all the designated partners.
- Utility Bill of the office that you have proposed as your registered office for your LLP.
- A No-Objection certificate from the landlord of the location of your registered office.
- A copy of the rental agreement.
- Get your DSC
Digital Signature Certificate is yet another important document you require while filing for your LLP. Many documents you require need to be filed electronically. They also need to be signed. Here, comes the role of the digital signature. You sign these documents using your digital signature. In order to have a DSC, you can register online with us. We can help you in having your own DSC.
After all these documents are obtained you can go for name approval. And finally, file for incorporation of your LLP. The documents mentioned in step 2 will be required while filing.
In addition, the landlord of the registered office premises must provide:
- No Objection Certificate for having the registered office on his/her premises and must submit his/her identity proof and address proof.
- Original (should not be copied from already registered companies).
- Easy to remember
- Should not contain sensitive words (can contain but only with permission) like ‘British India’ and ‘Tribunal’.
- An LLP based company must end its name with either ‘Limited Liability Partnership‘ or ‘LLP’.
- The name should not be offensive in any manner.
- Use of words like ‘National’, ‘Central’, ‘Republic’, ‘Federal’ and ‘Union’ is prohibited until and unless the company has the permission of Central Government or is a part of it.
- The name should be different from existing LLPs even in terms of sound and pronunciation.
- The name should not depict any connection with government bodies.
- Words like ‘Bank’, ‘Banking’, ‘Mutual fund’ and ‘Venture Capital’ without permission is not allowed.
- The name should not contain a registered trademark without the permission of the owner of that particular trademark.
- The name should not be too general and should be somewhat related to the services or goods your company is providing. This particular factor will help the easy approval of your company’s name.
- The name should not show any kind of connection with a National Leader.
Procedure to Form LLP
Step 1: Obtain Digital Signature Certificate (DSC) for the Partners
For obtaining DIN (Director Identification Number or Designated Partner Identification Number) for the Partners of the LLP, a Digital Signature Certificate (DSC) is required. Therefore, a Digital Signature Certificate for the proposed Partner must first be obtained. The DSC can be obtained within one day of filing of the DSC Application with LegalRaasta.
Step 2: Obtaining Director Identification Number for the Partners
Once, Digital Signatures are obtained for the Partners, application for Director Identification Number (DIN) can be made. DIN registration usually happens immediately and in rare cases, additional documents must be submitted to the DIN Cell for approval of the DIN application. DIN and DPIN are synonymous and can be used interchangeably. Each person can have only one DIN.
Step 3: Obtaining Name Approval
Once two DPIN’s are available, application for reservation of name can be made to the MCA. It is important for the promoters to keep in mind the LLP Naming Guidelines and suggest appropriate names for the LLP in the application, to ensure a speedy approval. Once, the application for reservation of name is submitted to the MCA, it will be processed by the Registrar of Companies (ROC) in the State of Incorporation.
Step 4: Filing for Incorporation
Once the name approval application is accepted by the MCA, an LLP name approval letter will be issued to the proposed Partners. The Partners then have 60 days to file the required incorporation documents and register the LLP. In case the LLP is not formed within 60 days of name approval letter, the approval for a name for the LLP would have to be re-obtained.
While filing for the formation of LLP, the documents showing possession of the registered office would be required. Once prepared, the registered office related documents along with the signed subscriber’s sheet must be filed with the MCA for LLP registration in India.
If the application for LLP Registration is acceptable, the Registrar would issue the incorporation certificate. Once, the incorporation certificate is issued, the LLP will be considered to be registered and application for PAN for the LLP can be made. The Partners of the LLP then have 30 days time to file the Partnership Agreement of the LLP with the MCA. In case, the LLP Partnership Agreement is not filed within 30 days, a fine will be applicable.