Incorporation of a LLP
What is LLP?
LLP is a body corporate formed and incorporated under LLP Act, 2008. It is a legal and separate entity from that of its partners.
Benefits of LLP:
LLP has a benefit of being a separate Legal Entity and liability and responsibility of every partner are limited to the contribution made by the partner.
Relatively the cost of forming an LLP is low also there is no minimum capital contribution.
There is less agreement and Regulations in the formation of LLP.
LLP Incorporation Process
Firstly for the reservation of proposed LLP name, through LLP-RUN (Limited Liability Partnership-Reserve Unique Name). 1-6 is the limit proposed names are expected to be given to the MCA.
Normally the name approval process takes 5 to 7 working days. A re-submission of the form is made 15 days in case of rejection.
One requires drafting Memorandum of Association and Articles of Association, MOA, AOA are registered with the MCA with the agreement statement.
LLP Agreement is a written agreement between the partners of LLP, and oversees the mutual rights and duties between the LLP and its partners. This agreement must be registered in Form -3 which is required to be registered within 30 days of date of Incorporation of the LLP.
> LLP Documents Requirement:
a. Designated Partners are required to have PAN Card
b. Designated Partners are required to have a DIN (Director Identity Number)
d. Valid Address (for the Registered Office)
e. Passport size photograph of Partners
f. Copy of Address proof (Adhaar Card/ Voter identity Card or Driving License)
g. Passport (In case of foreign nationals/ NRIs)
h. Electricity/ Water bill/ Telephone/ Latest bank statement for Address proof of the Business Place (Registered Office)
i. NOC (Landlord)
j. Copy of Sale Deed/ Property Deed (If owned property)
k. Contribution: There is no minimum contribution
> Forms Involve:
a. RUN-LLP: Reserve Unique Name Limited Liability Partnership (For Name Reservation)
b. FiLLiP: Form for Incorporation of LLP
c. Form 5 – For Name Change of LLP
d. Form 17- Application and Statement for the conversion of a firm into LLP.
e. Form 18- Application and Statement for conversion of a Private or Unlisted Company into LLP.
> Annual Compliances:
LLP is expected to comply with the annual compliance requirements which are:
a. Statement of Account & Solvency (Form- 8)
b. Annual Return of Limited Liability Partnership (LLP) (Form-11)
c. Income Tax Return
a. For Incorporation Minimum 2 Partners are required
b. At least One Designated Partner as Indian Resident
c. Requirement of DPIN for all Partners
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Author- CS Aakansha Negi and can be contacted at firstname.lastname@example.org