Checklist / GIST / Check Points / Pre-Requisites / Quick Points on LLP

Checklist / GIST / Check Points / Pre-Requisites / Quick Points on Limited Liability Partnership (LLP)

Limited Liability Partnership (LLP) is governed by Limited Liability Partnership, Act 2008. But currently as per the Limited Liability Partnership (Second Amendment) Rules, 2022, MCA-V3 portal is being required to be used for LLP Formation. LLP is hybrid version of Company and Partnership. Before we dive to formation actual process here are basic check points / pre-requisites / Gist about LLP

Limited Liability Partnership Basic Check points / Gist / quick points

1) Minimum 2 (two) Designated partners required for formation.

2) Out of 2 (Two) minimum 1 should be resident of India.

3) If proposed designated partner already has DIN then same should be approved. And incase disqualified DIN then same person cannot become designated partner until his DIN status is changed to Approved / non-disqualified.

4)  If proposed designated partner already has DIN and the same is deactivated and then firstly DIN KYC required to be completed.

5) Apart from 2 designated partners, if LLP wish then can appoint others / proposed under Partner designation. To obtain / have DIN for Partner designation is not required.

6) DIN KYC filing if pending of proposed designated partner then same can be done after name approval (RUN-LLP) but compulsory before FiLLIp form filing (Form for Certificate of Formation).

7) There is no upper limit on the maximum number of partners in LLP.

8) There is no minimum Capital contribution requirement for LLP formation

9) LLP functionality object, rules, duties are governed as per LLP agreement. LLP agreement can be amended as and when required on the basis of original agreement (1^st time filed agreement).

10) No separate Din application required for LLP formation. Maximum 3 applicant can be allotted DIN alongwith with Certificate of Formation (COI)

11) Alongwith COI applicant also receives the PAN and TAN certificate on mail id mentioned for proposed LLP mentioned in the FiLLiP form.

12) Process of Formation is divided into three steps.

__ RUN-LLP (Reserve Unique Name)

__ FiLLiP (Fillip incorporation of LLP)

__ Form 3 (LLP agreement)

Detailed process of form filing and attachments shall share in next article

13) Stamp duty required to be paid on Original / Initial agreement / supplementary agreement as per State in which registered office address is situated.

14) Any individual or body corporate can be a partner in an LLP. However, minors, persons of unsound mind and an undischarged insolvent cannot be partners in an LLP.

15) Annual filings i.e Form 11 (Annual return) and Form 8 (Statement of Account & solvency) required to be filed annually by every LLP.

16) If an LLP is incorporated in Jan month then immediate March month to end the 1^st first financial year for annual filing is not compulsory. LLP can file 15 months Form 11 and Form 8 accordingly. But this is applicable in 1^st year only. And for period beyond 15 months same is not applicable.

18) LLP agreement should be compulsory signed by all designated partners and partners on every pg of the agreement and minimum 2 witness will sign the agreement. (Original initial and supplementary)

19) DSC required of all designated partners who are already having DIN for FiLLIp form filing.

20) Incase none proposed designated partner do not have DIN then with 1(one) proposed designated partner DSC, LLP formation can be done.

Content is merely for sharing knowledge. For any queries, Author can be reached at cskinnarimakwana@gmail.com or 9773763430