A limited liability partnership (LLP) is a type of partnership firm where liability of some or all partners (depending on the jurisdiction) is limited. Thus LLP is that type of partnership structure where each and every partner's liability is limited to the amount they put into the business. Limited liability means that if the partnership fails, the partner's personal assets or income is
Features of LLP
- Just like companies, LLP has a separate legal entity.
- The liability of each partner is limited to the amount paid by them in business.
- The cost of formation of LLP is low
- Legal compliance and regulations are less
- No need of minimum capital contribution
The minimum number of partners required for incorporation of an LLP is 2. Maximum number of partners of LLP is not limited. Among the partners, minimum two designated partners are required who shall be individuals, and at least one of them should be resident in India. LLP agreement governs the rights and duties of designated partners.
If anybody wants to start his business with Limited Liability Partnership, then he must get it registered under Limited liability Partnership Act, 2008.
Process of Registration as LLP
Step 1: Firstly DSC has to be obtained
Before initiating registration process, one must apply for the digital signature of the designated partners of the proposed LLP. This is because there is online filling of all the documents for LLP and is required to be signed digitally
Step 2: Apply for DIN
One has to apply for the DIN of all the designated partners or those intending to be designated partner of the proposed LLP.
The allotment application of DIN has to be made in Form DIR-3. One has to attach the scanned copy of documents (usually Aadhaar and PAN) to the form. Company Secretary in full- time employment of the company or the Managing Director/Director/CEO/CFO of the existing company shall sign the form in which the applicant shall be appointed as a director.
Step 3: Name Approval
For the reservation of name of proposed LLP, LLP-RUN (Limited Liability Partnership-Reserve Unique Name) is filed which shall be processed by the Central Registration Centre under Non-STP. But before quoting the name in the form, it is recommended that one has to use the free name search facility on MCA portal. The list of closely resembling names of existing companies/LLPs will be provided by the system based on the search criteria filled up.
Step 4: Incorporation of LLP
- The person shall file the incorporation form FiLLiP (Form for incorporation of Limited Liability Partnership) with the Registrar who has a jurisdiction over the state in which the registered office of the LLP is situated.
- Fees shall be paid as per Annexure ‘A’
- If an individual who is to be appointed as a designated partner does not have a DPIN or DIN then this form also provides for applying for allotment of DPIN
- Only two individuals shall be allowed for the application of allotment.
- The reservation application shall be made through FiLLiP too.
- If the name applied is approved, then LLP shall file this approved and reserved name as the proposed name.
Step 5: File Limited Liability Partnership Agreement
- The agreement of LLP must be filed in form 3 online on MCA Portal.
- Within 30 days of the date of incorporation, Form 3 for LLP agreement has to be filed.
- The Agreement of LLP has to be printed on Stamp Paper. Stamp Paper value is different for every state.
- Documents required for registration as LLP
List of documents required for registration are as follows:-
Documents of Partners:
- PAN Card/ ID Proof of the Partners
- Address Proof of the partners
- Residence Proof of Partners
- Passport (in case of Foreign Nationals/ NRIs)
Documents of LLP:
- Proof of Registered Office Address
- Digital Signature Certificate
- Cost Involved in Registration Process
The government fees for filing forms is as follows:-
Step 1 – DSC
Around Rs. 1500-2000 for 2 partners(varies depending on the agency)
Step 2 – DIN
Rs. 1000 for 2 partners
Step 3 – Name Reservation
Step 4 – Incorporation
Depends on capital contribution.
Contribution up to Rs. 1 lakh – Rs. 500,
Contribution between Rs. 1 and 5 lakh – Rs. 2000
Step 5 – LLP Agreement
Fees for LLP Agreement depend on capital contribution.
Contribution up to Rs 1 lakh –Fees is Rs 50 for filing Form 3
and stamp duty vary from state to state where LLP is formed
- Approximately 15 days subject to availability of all documents is required for LLP formation starting from obtaining DSC to Filing Form 3.
- Now, business is registered as a Limited Liability Partnership using corpseed Expert & Legal Services.
You can hire corpseed for getting the LLP REGISTRATION for you by saving your time from all the government hassles.
This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.
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