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What are the different stages of LLP incorporation in India?

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Last Updated on July 4, 2023 by Kanakkupillai

What are the different stages of LLP incorporation in India?

Pre-Incorporation Stage

Determine the Business Structure

Determining the business structure is crucial during the pre-incorporation stage of LLP (Limited Liability Partnership) incorporation in India. Choosing the best organizational structure for your goals and needs is the task at this stage. Liability protection, ownership structure, tax ramifications, and regulatory compliance are a few things to think about. To comprehend the benefits and drawbacks of various business forms, including sole proprietorship, partnership, private limited company, and LLP registration, conduct in-depth research. Consult a chartered accountant or company secretary to evaluate your business demands and come to a well-informed conclusion about the best business structure for your LLP.

Choose a Name for the LLP

The following suggestions should be taken into account when choosing fa name for your LLP (Limited Liability Partnership) in India. The name must be unique and must not infringe on any already-registered trademarks or intellectual property rights. Additionally, it should be simple to remember and reflect the essence of your company. Make sure the name complies with the rules set forth by the Ministry of Corporate Affairs (MCA). To find out if the requested name is already taken, use the MCA website’s name availability search feature. Select a name that is consistent with your brand and supports your company’s goals.

Obtain Designated Partners Identification Number (DPIN)

Follow these instructions to get a Designated Partners Identification Number (DPIN) for your LLP (Limited Liability Partnership) in India. Fill out Form DIR-3, which asks for the designated partners’ names, addresses, and proof of identity. Utilize the Ministry of Corporate Affairs (MCA) portal to submit the form online. Pay the required fee and present the required documents, including your PAN card, Aadhaar card, and photos. The MCA will issue the DPIN following verification since it is necessary for the designated partners to function as LLP partners and meet their legal obligations.

Obtain Digital Signature Certificate (DSC)

Follow these instructions to get a Digital Signature Certificate (DSC) for your LLP (Limited Liability Partnership) in India. Select a certifying authority (CA) that has received approval from the Controller of Certifying Authorities (CCA). assemble the required documents, such as identification, address, and photocopies. Fill up the DSC application form that the CA has provided. Make an appointment at the CA registration center for identity verification. Online or through a designated payment processor, pay the applicable fees. Send the CA the filled-out application form and any necessary supporting documentation.

Draft the LLP Agreement

Gather the following necessary documents before drafting the LLP Agreement:

  • Address proof of all partners and Identity proof.
  • Partnership deed or agreement outlining the rights, responsibilities, and profit-sharing ratio among partners.
  • Address proof of the registered office of the LLP.
  • Consent letters from partners agreeing to become partners of the LLP.
  • PAN cards and photographs of all partners.
  • Digital Signature Certificates (DSC) of designated partners.
  • Ensure all documents are accurate, up to date, and in compliance with the requirements set by the Ministry of Corporate Affairs (MCA) in India.

Incorporation Stage

File an Application for Reservation of Name

One of the key steps in the LLP (Limited Liability Partnership) incorporation process in India is applying to the reservation of the LLP’s name. Here’s how you can do it:

Prepare Form-1, which is available on the Ministry of Corporate Affairs (MCA) website, with information such as the proposed name of the LLP, the names of the partners, and the address of the registered office. Verify that the name you choose conforms with MCA requirements. Send the form and the required payment online. After approval, the name will be held for three months while the incorporation procedure is carried out. Before moving further with the other incorporation processes, a name reservation must be obtained.

Prepare and File Incorporation Documents

You must take a systematic approach when preparing and filing the incorporation documents for an LLP (Limited Liability Partnership) in India. Gather all the necessary documents first, including consent letters, LLP agreements, address and partner identity credentials, and proofs of partnership. Prepare Form-2 (Incorporation Document) after that, making sure to include accurate information about the LLP, partners, capital contribution, and registered office address. Obtain the designated partners’ digital signatures, then submit Form 2 online via the Ministry of Corporate Affairs (MCA) portal.

Pay the Required Fees

Access the Ministry of Corporate Affairs (MCA) online to pay the required fees for LLP (Limited Liability Partnership) incorporation in India. Select the form or service that applies to which the fee is applicable. Go to the payment gateway after entering the required information. Use a debit card, credit card, net banking, or another acceptable payment method to make the payment online. Before starting the incorporation procedure, be sure the payment was successfully processed.

Obtain a Certificate of Incorporation

You must submit the necessary incorporation documents and finish the registration process with the Ministry of Corporate Affairs (MCA) to get the Certificate of Incorporation for your LLP (Limited Liability Partnership) in India.

Post-Incorporation Stage

Obtain Permanent Account Number (PAN) and Tax Deduction Account Number (TAN)

The Income Tax Department or NSDL (National Securities Depository Limited) must receive the necessary documents and applications to provide your LLP in India with a Permanent Account Number (PAN) and Tax Deduction Account Number (TAN).

Open a Bank Account

Select a bank in India that provides LLP account services if you want to open a bank account for your LLP (Limited Liability Partnership). To open an account, gather the necessary documents, such as an incorporation certificate, an LLP agreement, and identity and address proof, then go to the bank branch.

Register for Goods and Services Tax (GST), if applicable:

Register on the GST website, provide the necessary documents, and get your GST registration certificate.

Comply with Other Legal and Regulatory Requirements:

Comply with any additional legal and regulatory responsibilities that are unique to your sector or line of work.

Create and Maintain Statutory Registers and Books:

Establish and maintain statutory registers and books, such as the Register of Partners, Register of Charges, and Minutes of Meetings, by the LLP Act.

Maintain Accounting and Financial Records:

Keep accurate and current accounting and financial records, including books of accounts, vouchers, invoices, and financial statements, by the relevant accounting standards and tax laws.

Conclusion

In conclusion, the many stages of LLP incorporation in India include the Pre-incorporation stage, when Kanakkupillai can help you choose partners, decide on the organizational structure, and complete the essential documents. Kanakkupillai can assist you with duties including name reservation, preparing and filing incorporation documents, and getting the Certificate of Incorporation throughout the incorporation stage. Kanakkupillai can assist you in the Post-Incorporation stage with PAN, TAN, GST registration, legal compliance, and upkeep of statutory registers. Trust Kanakkupillai for a quick and easy LLP incorporation procedure in India.

Stages of LLP Incorporation

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Kanakkupillai

Kanakkupillai is your reliable partner for every step of your business journey in India. We offer reasonable and expert assistance to ensure legal compliance, covering business registration, tax compliance, accounting and bookkeeping, and intellectual property protection. Let us help you navigate the complex legal and regulatory requirements so you can focus on growing your business. Contact us today to learn more.