Introduction
First of all, let’s understand what is LLP?
As we know that in partnership firm there is unlimited liability of every partner, and this may cause conflicts among them. Also, the firm have few numbers of member/partner and due to that more investment will not be there arises financial deficiency. These are the limitations of a partnership firm. And by resolving these limitation Concept of LLP is introduced in 2009 in India. Prior to that it was implemented in various countries like UK, USA, Singapore, Australia.
To bind the concept in a legal draft an Act is passed as “LIMITED LIABILITY PARTNERSHIP ACT 2008”
LLP is an alternative corporate business form that gives the benefit of limited liability of a company and flexibility of the partnership firm. It is capable of entering into contracts and holding property in its own name. It is separate legal entity and is liable to full extent of its assets and liabilities but liability of the partners is limited to there agreed contribution in the LLP.
Page Contents
Conversion to LLP:
Conversion of other Business forms into LLP: –
I. Conversion from Firm to LLP;
II. Conversion from Private company to LLP;
III. Conversion from Unlisted Company into LLP.
Documents/Details required for incorporating an LLP
For LLP Registered Office:
1. Address proof (electricity bill or utility bill) along with NOC
2. Capital Contribution by partners
For Each Partners (Designated Or Not)
1. Aadhar card (As ID proof)
2. PAN CARD (If designated DPIN/DIN IS MANDATORY)
3. Bank Statement/Passbook (Not older than 2 months) &/or electricity/utility bill (for residential proof) (NOTE: If permanent address & present add are different then both the addresses are to be required)
4. Email id
5. Mobile no.
Steps for LLP Incorporation:
1. Reservation Of Name For LLP;
2. Registration of LLP on MCA portal.
Let us discuss these steps in detail:
1. Reservation Of Name For LLP: IN Form Runllp
First of all, one has to fill run llp form for name reservation & do not forget to check the name you want, in master data on MCA portal. Replica or similar name company/LLP cannot be created.
2. Registration of LLP on MCA portal
- go to the MCA portal mca.gov.in
- sign in into your account with email id and password.
- Go to my application —–>then fillip form
- The very first page will be prefilled
- Fill the next pages where it requires details pf LLP’s registered office address proof utility bill & details of designated partners
- And in next page details of other partners in the LLP
- You also have to give PAN & TAN AO Details & that you can check on NSDL site.
- On last page just submit subscriber sheet signed by designated partners as well as by professional
- At last, take a review and check weather all the details filled correctly or not, then give declaration and submit the form
- By continuing the site automatically proceed you to form 9
- Submit the form 9 as it is. Afterward, upload the fillip form with attachment of DSC and form 9
And finally, the process is completed. You will receive an email in your registered email regarding successful submission of your fillip form.
Don’t forget to note down the SRN generated for future use.
The LLP will be incorporated within 30 days.
Conclusion
LLP is the best and safest mode to enter into partnership business. It gives you advantage of both company and partnership but disadvantage of none. It requires at least, two members to create but no maximum limit of partners prescribed, that gives financial independence and partner enjoys limited liability upto their capital contribution. Also, in forming an LLP there is no need to have huge amount to incorporate, it can be created by contributing a nominal amount of ₹ 5000.
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The above comments do not constitute professional advice. The Author can be reached at contact@financialtreecompany.com or visit our website www.financialtreecompany.com or call us on 9111872247 . My name is Ayushi Loth and I am tax consultant at Financial Tree Company (Your Honest Tax Assistant). We also make educational videos on Youtube and name of our channel is Financial Tree Company. Our main aim is to bring best possible solutions, spread knowledge and love.
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