New LLP: Formation of Limited Liability Partnership

Why LLP is Advantageous?

Forming and maintaining LLP has always been a preferred option for small

Enterpreneurs due to its structure, compliance and operational advantages.

Salient features of LLP

• LLP can be formed with minimum of 2 partners.

• LLP shall have at least two designated partners who are individuals.

• LLP is a separate legal entity.

• Liability of partners of LLP is limited to their contribution.

• There is less compliance as far as LLP is concerned.

• Every LLP is required to file Form 11 and Form 8 as part of their annual compliance.

• LLP can be registered in a short span of time within 15-20 days

Procedure for registration/ incorporation of LLP

Step 1: Filing of RUN (Reserve Unique Name) application

• The Applicant is required to reserve the name of LLP by filing RUN application.
• The application for Name can be made twice.
• The fees for filing RUN shall be Rs. 1000
• The Applicant is required to login to MCA portal
• Select RUN-LLP option under MCA service
• Select the option of “Prepare and Submit Online” in submission mode.
• Select the option of new incorporation
• Enter the two proposed unique names of LLP and auto check the same
• Enter comments, i.e the objects of LLP
• Attach file, if any and submit the form with payment of fees

Step 2: Filing of FiLLiP (Form for incorporation of LLP) application

This Form helps in incorporation of new LLP, allotment of DIN and/or reservation of name of LLP. It is mandatory to attach Digital Signatures of Designated Partner before filing the form. The Fees for submitting the form shall depend on the Contribution of LLP.

Requirements in the Form

• Name and Proposed Address of LLP
• Business Activities of LLP
• Details of Partners
• Significance of name
• Contribution in LLP
• Certification by Advocate/Company Secretary/Chartered Accountant/Cost Accountant in practice

Attachments required in the Form

• ID and Address proof of Designated Partner
• PAN of Partners
• Proof of registered office of LLP (Copy of Conveyance/Lease deed/ Rent agreement with rent receipts, NOC from the owner, copy of utility bill), as the case may be,
• Subscriber Sheet and Consent
• Details of LLP/Company in which partner is a partner/director
• Significance of name
• Contribution in LLP

The above form is then submitted by logging the MCA portal with the prescribed fee.

Step 3: Filing of Form 3

This Form is filed once the approval for FiLLiP is received by the applicant and the LLP is incorporated. The due date of filing the form shall be within 30 days from the date of incorporation. This Form helps in filing LLP agreement with the Registrar. The LLP agreement is printed on the stamp paper which shall be different for every state.

Information/Attachments required in the Form

• Date and Place of Agreement
• Contribution and Profit Sharing Ratio of Partner
• Rights and Duties of Partners
• Relevant clauses of LLP Agreement
• LLP Agreement

In case of any queries or clarification, please feel free to write us at shivanigargfca@gmail.com