LLP stands for “Limited Liability Partnership” which is an alternative form of business organization. It has a separate legal entity just like companies and the liability of each partner is limited to the contribution made by partner. The minimum partners needed to set up LLP are 2 and there is no limit on the maximum number of partners. The rights and duties of designated partners are governed by the Online LLP Registration in India agreement. They are directly responsible for the compliance of all the provisions of LLP Act 2008 and provisions specified in LLP agreement. It not only provides the benefits of limited liability but also allows its members the flexibility of organizing their internal affairs as a partnership based on a mutually arrived agreement.
LLP Registration Process:
Step 1: Digital Signature Certificate (DSC)
The first step in this process is to obtain the digital signature of the proposed partners. The sign needs to be obtained from government recognized agencies only.
Step 2: Director Identification Number (DIN)
The second step is to apply for Director Identification Number of all the partners of the proposed LLP. The application for DIN has to be made in Form DIR- 3. The documents required are Aadhaar and PAN attached to the form. The form must also be signed by a Chartered Accountant, Company Secretary, Cost Accountant or Advocate.
Step 3: Reservation of Name
For the name of LLP, Form 1 has to be filed. The name should not be same or resemble any of the co existing LLP, trademark or corporate body & it shouldn’t be undesirable in the opinion of the Central Government. Only then will the registrar approve the name. It is advised to use the free name search facility on MCA portal which provides the list of resembling names of existing companies or LLPs based on the search criteria that help to find a different name for the LLP or Online LLP Formation in India.
Step 4: Incorporation of LLP
The next form to be filled is Form 2 for the incorporation of LLP. All the details need to be checked with no scope of error or any false information. Depending on the capital contribution prescribed fees is to be paid:
- Contribution up to Rs. 1 lakhs – Rs. 500,
- Contribution between Rs. 1 and 5 lakhs – Rs. 2,000
The form must be digitally signed by designated partner having DIN. Also, it has to be digitally signed by an Advocate, Company Secretary, Chartered Accountant or Cost Accountant in practice. If the registrar is satisfied by the form they will propose the LLP the whole process usually takes 15-20 days.
Step 5: File Limited Liability Partnership Agreement
Form 3 needs to be filled with LLP agreement filed with it online on MCA portal. The LLP agreement is the agreement that states the rights and duties of the partners and between LLP and partners. It has to be filed within 30 days of the date of incorporation. The LLP Agreement has to be printed on Stamp Paper.
Company Vakil helps you with this process so that you can form a Online LLP Registration in India effortlessly. The whole process requires validation from certified advocates which can be provided by the team and process like this has no scope of errors which Company Vakil will make sure doesn’t happen.