Documents required for registering an LLP
Identity And Address Proof of Partners
-
Copy of PAN Card or Passport (Foreign Nationals & NRIs)
-
Copy of Aadhar Card/Voter’s ID/Passport/Driver’s License
-
Copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
-
Copy of passport-sized photograph specimen signature (blank document with signature [directors only])
Registered Office Proof
-
Copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
-
Copy of Notarized rental agreement in English
-
Copy of No-objection certificate from the property owner
-
Copy of sale deed/property deed in English (in case of owned property)
Why register an LLP?
Registering an LLP offers many benefits with the main benefit being the limited liability of partners. The members of the firm are only liable for a small amount of debt incurred by it. This is entirely different from proprietorship and partnership where the personal assets of directors and partners are not protected if the business becomes bankrupt. Registering an LLP in India offers the following benefits-
-
LLP is a separate legal entity from the partners. Each partner can sue the other in case a situation arises. It has an uninterrupted existence that follows perpetual succession, i.e., the partners might leave, but the business remains. A term of dissolution has to be mutually agreed on for the firm to dissolve.
-
Transferring the ownership of LLP is also simple. A person can quickly be inducted in as a designated partner and the ownership switches to them.
-
LLPs having a capital amount less than 25 lakhs and turnover below 40 lakhs per year do not require any formal audits. It makes registering as LLP beneficial for small businesses and startups.
-
An LLP has partners, who own and manage the business. This is different from a private limited company, whose directors may be different from shareholders. For this reason, VCs do not invest in the LLP structure.
-
An LLP can own or acquire property because it is recognized as a juristic person. Partners of LLP cannot claim the property as theirs.
BENEFITS OF INCORPORATING A COMPANY
1. It is a separate legal entity from its partners.
2. Induction of partner is simple.
3. No requirement of audits for small business.
4. No distinction between owner and partner.
Steps to register an LLP in India
1. Obtain DSC and DPIN of partners
The first step is to obtain the DSC of the desired partners of the Limited Liability Partnership. The reason for this is that all the forms need to be submitted online and require the partners’ digital signatures.The law also requires that all partners file for a DPIN number. The application has to be made in Form DIR- 3.
2. Application For Name Approval
This process involves registering the LLP. Before you do this, you would need to see if the name is already taken. Availability of the name can be checked in the MCA website using the following steps.
Step-2 After Clicking search if the same or similar name is NOT USED, the following dialog box will appear.
Step-3 Now that we have seen the name is available, there are two options. Either go ahead with the registration or reserve the unique name(RUN). RUN is mainly recommended for people who are not going to register an LLP immediately but at some future date. For such people, it is advisable to reserve their proposed name so that it can’t be used by anyone else.
3. Filling Form FiLLip for registering an LLP
The entire process of registration of an LLP is online and is done through a pdf that can be downloaded from the MCA website using the link here
Step 1 – Download the FiLLip form using this link
Step 2 – Unzip the downloaded zip file and open LLP_FiLLiP.pdf. You will need an Adobe Acrobat reader to read the file.
Step 3 – Please follow the instructions
Download format of the LLP Consent (Form 9) and Subscribers sheet
Please NOTE – The witness in the Subscriber’s sheet should be a Chartered Accountant(CA)/ Company Secretary(CS) / an Advocate.
4. Uploading the form onto the MCA Portal
The last step is to upload the FiLLip form onto the MCA portal. Please ensure that the form after affixing all Digital Signatures is less than 6 MB. In order to upload the file, you will need to create an account on the MCA website. Click here to upload the FiLLIp form.
5. Making the payment and saving the SRN number
Once the form has been submitted, you will be automatically redirected to make the payment. Once the payment has been made a challan will be generated along with a Service Request Number(SRN). Store the challan safely as you will be needing it for future references.
Once the form has been approved by the concerned official of the Ministry, you will receive an email regarding the same and the status of the form will be changed to Approved.
6. Filing the LLP Agreement
Once the form has been approved, an incorporation certificate will be issued. An LLP agreement will need to be issued within 30 days of incorporation of LLP.
Download format for the LLP agreement
LLP agreement governs the mutual rights and duties amongst the partners and also between the LLP and its partners.
-
LLP agreement must be filed in Form 3 online on the MCA Portal
-
Form 3 for the LLP agreement has to be filed within 30 days of the date of incorporation.
-
The LLP Agreement has to be printed on Stamp Paper. The value of Stamp Paper is different for every state.
An LLP agreement will need to be issued within 30 days of incorporation of LLP.
LLP formation starting from obtaining DSC to Filing Form 3 takes approximately 15 days subject to availability of all the documents.
Author Bio
This is old process and not working now.
Please update latest process in V3.
Your mentioned process is not useful to anyone now.