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
- Name Approval and Reservation with ROC:
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.
- MOA & AOA Submission :
One requires drafting Memorandum of Association and Articles of Association, MOA, AOA are registered with the MCA with the agreement statement.
- FiLLiP(Form for incorporation of Limited Liability Partnership) which must be registered with the registrar, who has jurisdiction over the state in which the registered office of the LLP is located. This is an integrated form. MCA will approve the application for incorporation within 5 to7 days. Incorporation certificate will be presented which will include CIN number.
- LLP Agreement Registration:
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)
c. Digital Signature Certificate (DSC)
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
Note:
a. For Incorporation Minimum 2 Partners are required
b. At least One Designated Partner as Indian Resident
c. Requirement of DPIN for all Partners
Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information. IN NO EVENT SHALL I SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION.
Author- CS Aakansha Negi and can be contacted at [email protected]
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