How to Register a Limited Liability Partnership in India?
The benefits of partnerships and corporations are combined in the well-liked LLP type of organization in India. It offers the benefit of restricted liability, protecting the partners’ private assets. Additionally, it has perpetual succession, which means it endures even if one or more of the partners changes. There is no maximum number of partners for LLPs, which were first introduced in 2008. The partners must have at least two specified individuals as partners, one of whom must be an Indian citizen. According to the LLP agreement and the LLP Act, the selected partners are given specific rights and obligations that ensure they abide by the laws.
LLP Registration Process
Steps to Form a LLP registration:
Step 1: Obtain Digital Signature Certificate (DSC)
Apply for a DSC from a government-approved Certifying Authority: The authorized partners of the LLP must apply for digital signatures to start the registration process. All LLP documents must be provided electronically, so these digital signatures are necessary. Therefore, the government-approved certifying agencies must provide the selected partners with their digital signature certificates.
Complete the application form and submit the required documents: After obtaining the Digital Signal Certificate, one must fill out the application form and submit all the required documents such as identity Proof, Address Proof, and Partnership agreements.
Pay the applicable fees and undergo identity verification: After submitting all the required documents the next step is to pay the application fee and undergo Identity verification for which the person applicant should appear in person.
Step 2: Obtain Director Identification Number (DIN)
Individuals intending to be designated partners of the LLP must apply for DIN: All designated partners of the LLP, as well as those who wish to become designated partners, must submit applications for DIN. Utilizing Form DIR-3, you should submit your DIN application.
File the DIN application online through the Ministry of Corporate Affairs (MCA) website: To obtain the DIN one can submit their application through the MCA website.
Provide necessary personal details and identity/address proofs: Applicants can fill out the application and submit all the required documents in the designated portal provided by MCA.
Pay the prescribed fees and apply: The next step is to pay the prescribed fee. In the case of an existing company Rs. 500 is to be paid online.
Step 3: Name Reservation
Choose a unique name for your LLP, following the guidelines provided by the MCA: Make sure the name you reserve for your LLP is unique and adheres to the standards established by the Ministry of Corporate Affairs (MCA). The name shouldn’t be too close or identical to other brands or trade names already in use. It must also adhere to accepted naming rules and refrain from using forbidden terms or phrases.
Check the availability of the proposed name through the MCA website: Use the Name Availability function on the Ministry of Corporate Affairs (MCA) website to check for availability. If you enter the desired name, the system will determine whether it is accessible and notify you if it may be registered for your LLP.
File an online application for name reservation: Fill out an online name reservation application on the Ministry of Corporate Affairs (MCA) website to reserve a name for your limited liability partnership. Give the desired name and the relevant information by the regulations, then send the application for evaluation and approval.
Pay the required fees and provide the necessary details: Form 1 and the fees listed in Annexure ‘A’ must be submitted. Based on the information submitted and compliance with the rules, the registrar will assess the application and either approve or reject it.
Step 4: Prepare and File Incorporation Documents
Prepare the incorporation documents, including the LLP Agreement and the Incorporation Form (Form FiLLiP): The FiLLiP form, which stands for “Form for incorporation of Limited Liability Partnership,” is used to incorporate a Limited Liability Partnership (LLP). The Registrar with jurisdiction over the state in which the LLP’s registered office is located should receive this form. The FiLLiP form is an integrated document that gathers the numerous facts and data needed for the establishment of the LLP.
Include details of partners, registered office address, contribution, profit sharing ratio etc., in the LLP Agreement: Important details like the names and addresses of the partners, the LLP’s registered office address, the capital contributions made by each partner, the profit-sharing percentage among partners, the partners’ rights and obligations, and various provisions that regulate the LLP’s operations and management should all be included in the LLP Agreement.
Attaching the needed documents, as specified by the Ministry of Corporate Affairs (MCA), such as address proofs, identity proofs, and affidavits is crucial to completing the LLP incorporation procedure. These records are used as proof to substantiate the information on the incorporation forms. The incorporation documents must also be digitally signed by the partners using their individual Digital Signature Certificates (DSCs), verifying the legitimacy and integrity of the submitted documents.
Step 5: File Incorporation Forms
The incorporation documents must then be uploaded to the Ministry of Corporate Affairs (MCA) portal after being signed with the partners’ Digital Signature Certificates (DSCs). Send in the filled-out Form FiLLiP, which contains all the necessary information on the LLP, along with the submitted documents. Make sure to submit all necessary attachments, including affidavits, proof of address, and identity proofs. To complete the registration process, pay the required fees for LLP registration as outlined by the MCA.
Step 6: Certificate of Incorporation
The Certificate of Incorporation will be issued once the Registrar of Companies (RoC) has reviewed the LLP’s application and determined that every necessary document and data are in order. This certificate acts as official proof of the LLP’s establishment and existence, verifying that it has been registered by all applicable laws and regulations. It is a crucial document that creates the LLP’s legal status and gives it the ability to carry out commercial operations legally.
Step 7: LLP Agreement
The rights, responsibilities, and obligations of the LLP partners are outlined in the LLP Agreement. The specific roles and obligations of each partner should be laid forth in the document. The LLP Agreement must, by state rules, be stamped after being drafted with the relevant stamp duty. The document must also be submitted to the Registrar of Companies (RoC) within 30 days of incorporation to provide the legal foundation for the LLP’s governance and operation as well as to ensure compliance with all applicable regulations.
Conclusion
You can rely on the services of Kanakkupillai, a reputable platform for company registrations, to create a Limited Liability Partnership (LLP) in India. The registration procedure is made simpler by Kanakkupillai by helping you through each step. LLP Agreements outlining the rights and obligations of partners, as well as incorporation forms like Form FiLLiP, are among the crucial documents required. Kanakkupillai makes sure that the required document is correctly created and delivered to the Registrar of Companies (RoC) before the deadline. With the assistance of Kanakkupillai, you may easily traverse the LLP registration procedure and launch your business.
