The classic form of a partnership usually experiences difficulty in raising capital since all of its partners have unlimited liability. An LLP usually helps resolve this problem. As is evident from the name, an LLP is simply a type of partnership in which some or all of the partners have limited liabilities. An LLP and partnership exhibit the same features other than an unlimited liability and the fact that in an LLP, each partner is not responsible for another partner’s misconduct or negligence.
Process Of LLP Registration:
Step 1:First process is to obtain DSC.
Step 2: Then you have to apply for DIN.
Step 3:Approval of the name.
Step 4:LLP Incorporation.
Step 5: Filing of LLP Agreement.
Steps for the formation of a limited liability partnership:
Step 1:Digital Signature Certification (DSC):
DSC should be applied after initiating the process of registration by the designated partners of the proposed LLP. All documents for LLP are filed online therefore are required to be digitally signed.
So, it is important for a designated partner to obtain their digital signature certificates from the recognized certifying agencies of the government. The cost of DSC varies depending upon the certifying agency.
Step 2:Director Identification Number (DIN):
The next step is to apply for the DIN of all the designated partners or those who are going to be a designated partner of the LLP.
Allotment application of DIN is to be made in Form DIR-3. The scanned copy of the Aadhar card/PAN has to be attached to the form and the form should be signed by a Company Secretary of the Company or by the Managing Director/Director/CEO/CFO of the company whose applicant can be appointed as a director.
Step3: Application for Reservation of Name:
This step is done to register LLP and to check if the name is already taken. This can be checked on the MCA free search facility and only those name gets registered that are not taken before.
The approval of the name is given by the Registrar only if the Central Government does not deem it to be undesirable.
The LLP Agreement states the mutual rights and duties amongst the partner, and between the LLP and the partners.The partners can file form 3 online on the MCA Portal and can enter into the LLP Agreement upon the LLP registration.The procedure is done within 30 days of the date of incorporation.
Step5: Certificate of LLP Incorporation:
Once the MOA and AOA is approved by the registrar, then it is time to get an LLP Incorporation Certificate.
To get the LLP Incorporation Certificate, all the documents should be submitted to the registrar.The frame for the same is 2-12 days.Once you get the LLP Incorporation Certificate, you’re ready to go.
Step6: Apply for PAN, TAN and Bank Account:
Once the Incorporation Certificate is obtained, the next step is to apply for the company PAN and TAN along with NSDL. The cost procedure for the same is less than Rs.200 and it takes around three weeks to get completed.
Time taken for LLP Registration:
The average time required to register LLP Registration Online India or for LLP Registration India is 15 days to 20 working days as per the government processing time and submission of the documents.
Documents required for following:
- Documents at the time of LLP Registration:
For the process of registration of LLP, documents of all the partners along with LLP are required. Following are documents which are required in the way of scanned copies:
- ID proof the partners/PAN CARD.
- Address proof .
- Residence Proof.
- Passport Size Photo.
- Recent Bank statement/Electricity Bill.
- Passport in case of NRI’s.
- Documents required for LLP:
- Registered office address proof.
- Recent Bank Statement/Electricity Bill.
- Notarized Rental Agreement.
- NOC of the property owned (If rented).
- Property Deed of the owned property.
- Digital Signature Certificate.