It has almost been a decade that LLP Act came into existence. Those business owners who were forming Partnership before are now choosing LLP due to many benefits like a legal entity in the eyes of law, corporate structure and less compliance.
Let us now understand how to incorporate an LLP?
Applicable Forms
RUN LLP: For name approval of the LLP
FiLLP: Form for incorporation of the LLP
Form 3: Filing LLP Agreement
Lets understand each form:
RUN LLP:
LLP can apply for its name in this form. There is no need to attach DSC. It is a web-based form which requires few details like the name of LLP and business object. You get only one chance of resubmission. So, if you include resubmission, you can apply for total 4 unique names. Once the name is approved by ROC, it is valid for 20 days only.
FiLLP Form:
Post the name approval, you have to go form FiLLP Form to complete the incorporation. Details required:
Digital signatures of the partners
Office address proof:
If the registered office is taken on rent, rent agreement and a no objection certificate from the landlord has to be submitted. .
Besides, anyone document out of utility bills like gas, electricity, or telephone bill must be submitted. The bill should contain complete address of the premise and owner’s name and the document shouldn’t be older than 2 months.
PAN Card and the address proof of the partners:
Partner can submit anyone document out of Voter’s ID, Passport, Driver’s license or Aadhar Card. Name and other details as per address proof and PAN card should be exactly same.
Photograph
This form also provides for applying for allotment of DPIN, if an individual who is to be appointed as a designated partner does not have a DPIN or DIN. However, only two partners can apply for DIN through this form.
Fill in all the details required in this form like Partner details, and the basic information asked for. Attach all the above documents mentioned in the Form and file it. Please ensure that this step is done withing 20 days of name approval only.
Note: If you are very sure of the name, then you can directly apply for the name in FiLLP Form only. You can skip the RUN Form step. However, if the name does not get approved by the department then you have to prepare the documents fresh which becomes tedious. So, it is always advisable to go for RUN Form.
Final Step: Form 3 to file LLP Agreement:
Don’t forget to file this agreement ever. This is the main agreement which contains details of the profit-sharing ratio, Contribution, terms and conditions etc. This Form has to filed with the LLP within 30 days of its incorporation i.e within 30 days of the approval of filing Form FiLLP Form.
The LLP Agreement has to be printed on stamp paper as per the respective state.
FAQ:
1. What if I could submit the FiLLP Form within 20 days?
Ans: Apply for the name again, pay Rs. 1000/- again, get the name and then file FilLLP Form.
2. Is it mandatory to file LLP Agreement?
Ans: Yes, it is always mandatory to file LLP Agreement. If filed beyond 30 days, you have to pay a penalty of 100 Rs per day.
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