In today’s corporate world there is a huge need of new amendments and changes in procedure & way of doing work, for this Government has made a lot of changes for better transparency & working of the companies
However, this results in increased difficulty for the small businessman to do his business without worrying about following various compliances and procedures.
As a result of such effect, Government has made an amendment, named as the concept of Limited Liability Partnership
Limited Liability Partnerships have become popular in the last few years. & now here we will focus on the process of forming a Limited Liability Partnership along with the steps & elements required for the incorporation of an LLP.
Rules & Regulations are provided by the Limited Liability Partnership Act (LLP Act), 2008.
The essential elements required for incorporating an LLP are as follows:
1. At least 2 persons as partners, whether they are individual or a body corporate or both.
2. A place defined as registered office in India for communication purposes.
3. At Least two individuals as designated partners.
4. Each designated partner of an LLP should have a Designated Partner Identification Number (DPIN) that is allotted by the Ministry of Corporate Affairs (MCA).
5. Agreement between the partners or between the LLP and its partners.
6. A separate name for LLP.
Steps required for forming an LLP
1. Obtain Digital Signature (DSC) of proposed & designated partners.
2. Obtain DPIN of proposed & designated partners using form DIR-3 or apply for the DPIN using LLP_FILLIP Form.
3. Apply for the name of the LLP either by Using RUN-LLP services or by applying directly using incorporation form i.e. LLP_FILLIP
4. File form LLP_FILLIP & attach following documents with it
- Consent letter of each proposed & designated partner.
- Address Proof of the place of business of LLP.
- Identity proof of proposed & designated partners.
- Residential address proof of proposed & designated partners.
- A sheet of Subscriber.
- List of LLP(s) and or Company(s) in which a partner or designated partner is currently holding a position as a director or partner.
- NOC or approval of the person holding ownership of the trademark or copyright for their registration of such trademark or copyright.
- Approval is required in a case where the proposed name contains any word(s) or expression(s) that require approval by the Central Government.
- Approval is also required in case of collaboration and connection among any foreign country or place, from prescribed competent authority for the same.
- Also, the name approval letter is required in a case, if the name of such LLP is already approved using RUN-LLP services.
5. File the LLP Agreement within 30 days of incorporation with the Registrar
RUN-LLP services for the name of LLP is optional for the applicant, he can also directly apply for the LLP name using incorporation form LLP_FILLIP.
Obtaining DPIN for proposed & designated partners is optional, an applicant can directly apply for the same using incorporation form LLP_FILLIP.
When Ministry approves the name of LLP such name gets reserved for the applicant for a period of 90 days.
The value of Stamp paper to be used & the amount of notary of LLP Agreement changes as per one state to another state.