Dear friends, in this competitive market, when we start a new business then it requires huge capital investment (depending of nature of business segment) and trustworthy human resources to get success in our dream business. In most of the cases the entrepreneur has the vision and idea to start a new business but due shortage of capital investment they are not able to start their dream project.
To come out of this kind of situation, Ministry of Corporate Affairs has given us an opportunity to create a Limited Liability Partnership (LLP) where minimum 2 persons join hands together and create a legal constitution in the Form of LLP.
In LLP, liability of Partners in case of loss is limited to their capital contribution. In case of Limited Liability Partnership number of compliances are very limited in comparison to Private/ Public Limited company. Further, MCA has made the Incorporation process of LLP very easy in comparison to registration process of Partnership Firm under Indian Partnership Act. In this blog, we will discuss about the process and documents required for Incorporation of Limited Liability Partnership.
Name Approval from MCA: Before starting of LLP Incorporation process, we have to finalise an LLP name which is not similar to any existing LLP/ Incorporated Company. We have to apply in Form RUN-LLP to get approval of our proposed name of LLP. MCA team will verify our name in their database and if satisfied then our name is approved otherwise, they will raise objection and we have to re-submit our application with different name. After name approval, our LLP incorporation process starts.
Note: Approved name is valid for a period of 3 Months from the date of approval.
Documents required for LLP Incorporation
- KYC Documents of all Partners (PAN Card, Aadhar Card, Voter ID, Passport, Bank statement etc.)
- Photo
- Mail ID and Mobile number of Partners
- DPIN/ DIN number of partners if already allotted to them
- Proof of address of registered office of LLP
- Subscribers Sheet along with Consent letter of Partners
- Copy of Resolution/ Authorisation, if body corporate is proposed Partner in this LLP
- Digital Signature of Partners
Filing of e Form FiLLip (e Form -2)
After name approval from MCA, we have to file Form for incorporation of Limited Liability Partnership (e Form – 2). In this Form we have to provide details of
– Registered office of LLP
– Its partners detail
– Details of business activities proposed to be done
– Details of Contribution by partners
– Subscribers Sheet and Consent
After submission of Form along with required documents, the application is made available to MCA officer for verification purpose. If he finds all documents accurate then he will approve the application. In case of deficiency, he may raise objection and we have to resubmit the application within 15 days from the date of intimation given to us related to his query after rectifying the objection raised by him.
When Officer approved our application, the Certificate of Incorporation of LLP is issued in Form 16.
Filing of LLP Agreement in LLP Form 3
After incorporation of LLP, we have to File LLP Form 3 with MCA within a period of 30 days from the date of Incorporation of LLP. In Case of delay in Filing, we have to pay additional fee as prescribed in law.
Benefits of LLP Registration
√ LLP is recognised at par in comparison with company because it is approved by MCA
√ No Upper Limit on Numbers of Partners
√ Incorporation and Annual Compliance charges are very low in comparison to Private Limited Company
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Disclaimer: This article is for the purpose of information and shall not be treated as solicitation in any manner and for any other purpose whatsoever. It shall not be used as legal opinion and not to be used for rendering any professional advice. This article is written on the basis of author’s personal experience and provision applicable as on date of writing of this article. Adequate attention has been given to avoid any clerical/arithmetical error, however; if it still persists kindly intimate us to avoid such error for the benefits of others readers.
The Author “CA. Shiv Kumar Sharma” can be reached at mail –shivsharma786@gmail.com and Mobile/Whatsapp – 9911303737/ 9716118384
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