With the emergence of ideas, more & more people are thinking to do something of their own like running a startup or business etc., for that having a separate legal entity is like “Cherry on the cake” these days.
Many options are there to run a business like registering it as a Sole proprietorship, by forming a Partnership firm or registering as a Company, Limited Liability Partnership (LLPs) etc.
Limited Liability Partnership is a perfect blend of “Company and Partnership” with less compliances compared to company as there is no requirement to hold minimum Board meetings etc., filing of MSME Returns, Deposits returns, mandatory appointment of Auditor etc.
Basic requirement: –
Minimum of two partners are required to incorporate a LLP and all LLPs are governed by Limited Liability Partnership Act, 2008.
LLP Agreement is the basic and most important document which defines the role and responsibilities of Partners, their profit sharing ratio etc.
1) Obtaining Digital Signature
Class – 2 DSC will be required to be obtained for the designated partners of the proposed LLP
2) Proposed LLP Name
Unique name is required which is not identical or resemble with any existing LLP
3) MCA RUN Service (Reserve Unique Name)
Name will be applied using MCA RUN LLP service i.e. two names can be applied first using RUN LLP service
One resubmission is also allowed in RUN in which another two names can be applied further
4) Proposed Main Object, contribution of the LLP
Proposed business activity of the LLP in brief is required envisaging the activities to be carried out along with contribution etc.
5) Proposed Registered office of the LLP
Address of the registered office of the LLP is required
6) Ownership Proof
Whether the registered office is owned by LLP, then ownership Proof is required
If the Property is owned by any other entity/person, then ownership proof and NOC from that person is required to use premises as registered office of LLP
7) Utility Bill
Utility Bill like Electricity Bill or Mobile Bill or Telephone Bill (not older than two months) is required
8) Proposed Member/Partners info
Whether the proposed Partners are already having DPIN or not
In case proposed partners don’t have DPIN, then DSC needs to be availed first
9) Filing of form FILLIP & information required from the subscribers/partners
Subscribers Sheet and Consent needs to be taken
Identity and Residential Address Proof of proposed subscribers/partners will be required
10) Filing of LLP Agreement
LLP agreement needs to be filed within 30 days & is to be printed on stamp paper and stamp duty will be determined as per the state & contribution of partners
Disclaimer: The Author does not in any way take responsibility & guarantee towards the 100% accuracy of the information provided in this article. The Author has tried to prepare the article based on the relevant information available & is a mere opinion of author. Other views are most welcome for the suggestions or improvements to be done in the article.
The Author is a Company Secretary in practice & for any query/suggestion can be reached at +91-8826108009 or Email at [email protected]