Limited Liability Partnership is increasingly being preferred by persons wishing to conduct their specific businesses at a reasonable scale as it not just limits the nature and extent of compliance burden on the persons but also provides a kind of leeway to persons to manage their business effectively. With a view to promoting the notion of ease of doing business in India, the process of LLP registration in India has been made more simple and transparent which indeed provides a level playing field to persons who wish to carry the tag of being called a Body Corporate without being required to fulfill excessive compliance which we generally see in case of businesses registered under the Companies Act, 2013. Whether it's LLP registration in India, paying LLP registration fees, or facilitating subsequent compliance with the Limited Liability Partnership Act, all have been rationalized and made simpler that will prompt businessmen to secure LLP registration in India under the Limited Liability Partnership Act. So, here is presented a quick guide that elaborately discusses the various steps involved in availing of LLP registration in India.
Step 1 - Getting the Digital Signature Certificate in the name of the Designated Partners
When you are willing to get your Limited Liability Partnership registered the first thing that you must do is to obtain a Digital Signature Certificate (DSC) in the name of at least two Designated Partners as the process of filing the application form for the purpose of securing LLP registration in India is completely online making sense that the mandate of filing the LLP registration form can materialize only when the application request is duly authenticated by the Designated Partners by means of a Digital Signature Certificate.
Step 2 - Reserving the desired name for your Limited Liability Partnership by furnishing the RUN-LLP form
The next aspect that you should cover is reserving a preferred name for your Limited Liability Partnership. In general, when you are venturing out for securing LLP registration in India, you are required to file the RUN-LLP (Reserve Unique Name - Limited Liability Partnership) form mentioning a maximum of two desired names one of which shall be approved by the Ministry of Corporate Affairs (MCA). In case, the Ministry of Corporate Affairs rejects both names you will further be provided with another chance to furnish two more prospective names. Please take note of the fact that you must also pay a fee of Rs. 1000 forming part of LLP registration fees structure for reserving your desired name which once approved will remain reserved for a period of 90 days only. Also, there is no requirement of filing the RUN-LLP form by furnishing DIN or DSC along with mentioning the probable names of your LLP in the RUN-LLP form.
Step 3 - Preparing the underlying documents for the purpose of incorporation of your Limited Liability Partnership
The next significant aspect is the preparation of different supporting documents that ought to be furnished after the name of your Limited Liability Partnership is approved and allotted. These documents by and large include the following:
1 - Address proof of your Office address.
2 - You will also have to furnish the No-Objection Certificate from the owner of your Office.
3 - Copies of utility bills that are not older than two months.
4 - The subscription sheet displaying the consent of the subscribers shall also be filed.
5 - You will also have to attach the identity and address proof of the subscribers in case they do not possess the DIN.
6 - All designated partners must be having respective Digital Signature Certificates.
7 - The details of such companies and LLPs are required to be furnished if the Designated Partner is a director in any company or is a partner in any partnership firm or LLP.
Step 4 - Filing the FiLLiP application for and getting the LLP registration in India done
Now comes, the core and integral step which is all about filing the all-new FiLLiP application form duly filled, adequately supported by the underlying documents mentioned in the earlier step, attested by the Designated Partners, and further certified by a practicing CA, CS, or a CWA. Upon scrutiny of the application form and all related documents, the Central Registration Centre (CRC) will issue a Certificate of Incorporation (CoI) which will bear the unique Limited Liability Partnership Identification Number (LLPIN) along with the date of incorporation of your LLP. It is worth mentioning that you can simultaneously apply for DIN or DPIN along with filing the FiLLiP application form.
Step 5 - Getting the Limited Liability Partnership Agreement suitably drafted and appropriately executed
After you have secured the LLP registration in India by complying with all the requirements mentioned in the earlier steps and also after having paid the LLP registration fees, you should now be drafting an ideal Limited Liability Partnership agreement as your own circumstances warrant and getting it registered by paying the applicable stamp duty. Please make sure that it is to be executed in the presence of witnesses. And, what becomes worth discussing is the fact that this LLP agreement will contain clauses reflecting the consensus amongst all the partners of your Limited Liability Partnership as regards profit sharing ratio, respective share of capital contribution, interest on contribution, etc.
Sign in to leave a comment.