Process to Start Limited Liability Partnership Step 1:- Acquire the DPIN of desired Partners Step 2:- Acquire the Digital Signature of one of the desired Partner Step 3:- Registered DPIN and DSC with LLP website Step 4:- Check the availability of name from which partners want to make LLP

1) Annual filing of Form 8 is now taken in straight through process. Users are requested to download the new eForm for their filing. 2) Forms 17 & 2 and Forms 18 & 2 will be linked and processed together in the back-office to speed up the conversion process. 3) Viewing of public documents filed by LLPs are enabled.

NOTIFICATION [F.NO. 2/17/2011-CLV], DATED 14-9-2011 In exercise of the powers conferred by sub-sections (1) and (2) of section 79 of the Limited Liability Partnership Act, 2008 (6 of 2009), the Central Government hereby makes the following rules, further to amend the Limited Liability Partnership Rules, 2009 namely:-

The salient features of LLP Act, 2008, inter alia, are as follows: 1. It is a body corporate with separate legal entity from its partners. The mutual rights and duties of the partners of an LLP are governed by LLP Agreement. 2. LLP is liable to the extent of its assets. Partner’s liability is limited to the extent of agreed contribution (capital) in the LLP Agreement. 3. No partner is liable on account of the independent or unauthorized action of other partners or for their misconduct.

LLPs are a hybrid form of business enterprise which is a combination of a partnership firm and a company. A LLP is considered as a body corporate like any after company, enjoys tax treatment like a partnership firm, limits the liability of the partners to the extent of contribution as in case of company and entry or exit of partners is simpler. A LLP is easier to form and close with lesser regulatory compliances. World over, LLPs are a successful investment and business vehicle . LLPs are considered as an efficient alternative business model which provides the best of both worlds – a firm and a company. The LLP has lesser compliance requirements than a company and also lesser liability than a partnership firm.

FDI in LLPs will be allowed under the Government Approval Route in those sectors / activities where 100 percent FDI is allowed under the Automatic Route and there are no FDI-linked performance related conditions. The LLPs with FDI will not be allowed to operate in Agricultural / Plantation Activities, Print Media or Real Estate. The LLPs with FDI will not be eligible to make any Downstream Investments.

- Cabinet Committee on Economic Affairs of the Government of India have decided to permit Foreign Direct Investment (FDI) in Limited Liability Partnership (LLP) which are formed under the Limited Liability Partnership Act, 2008 [LLP Act]. Presently, FDI is allowed in Indian companies. It is allowed in a firm or a proprietary concern, subject to certain conditions. FDI in a trust is also allowed with prior Government approval, provided it is a Venture Capital Fund (VCF) registered with Securities and Exchange Board of India [SEBI]. LLP Act permits setting up of hybrid entity, which has the features of a body corporate and a partnership for the purpose of undertaking business in India.

Approval for FDI in Limited Liability Partnership firms The Cabinet Committee on Economic Affairs today approved the proposal to amend the policy on allowing Foreign Direct Investment (FDI) in Limited Liability Partnership (LLP) firms. The FDI in LLPs will be implemented in a calibrated manner, beginning with the ‘open’ sectors where monitoring is not required, subject to the following conditions:

The Cabinet is likely to approve a proposal to allow foreign direct investment (FDI) in Limited Liability Partnership firms tomorrow. The proposal to allow FDI in LLPs in on the agenda of the Cabinet. It is likely to be approved,” a source said. Giving go ahead to FDI in LLPs would enable them to choose among domestic and foreign investors and make these more competitive. This move will also encourage more partnership firms to convert into LLPs.

CBI has registered a case U/S 8 of Prevention of Corruption Act against an official of Registrar, Firms & Societies, Punjab on the basis of a complaint received from Secretary of an Association alleging demand of bribe of Rs.1.5 crore by the official, of Registrar, Firms & Societies, Punjab, Sector 17, Chandigarh for closing the complaint against the Association without any action. The accused also threatened that in case of non-payment of the bribe amount, control of the Association shall be taken over by the Government and a criminal case will be registered against the office bearers of the Association. The accused official also allegedly told the complainant that he has approached a Minister in Punjab Cabinet through Chief Parliamentary Secretary for closing the complaint. He said that initially an amount of Rs.2 crore was demanded for settling this matter but, however, he has been able to reduce it to Rs.1.5 crore. The accused official also allegedly told that the bribe amount has to be delivered at the residence of Chief Parliamentary Secretary.