LLP Registration - Step by step Process

LLP is a kind of business form which combines the flexibility of partners and the benefits of limited liability at a very nominal cost of compliance.

LLP offers the benefit of limited liability to its owners and minimal maintenance. The owner of a private limited company has limited liability to its creditors. In the case of nonpayment, banks/creditors can only sell the company’s assets and not the personal assets of owners. LLP is a hybrid of a company, as well as a partnership firm.

This article includes the process related to LLP Registration.

What are the features of LLP Registration?

The features of LLP registration are-

•      Separate Legal Entity
•       Minimum 2 Persons Required
•       No Minimum Capital Contribution
•       Governed By LLP Agreement
•       Low Cost
•        Less Compliance
•        Limited Liability

What are the documents necessary for LLP Registration?

The documents required by Partners are-

The documents required for LLP

What is the need of LLP registration?

The concept of a Limited Liability Partnership is useful for small and medium-sized enterprises. Limited Liability Partnership is responsible for its losses and debt taking place in business, rather than that of its partner. Therefore, LLP is considered as a profit-making business.

The operating business can be a member of LLP and shall have at least two members. The rights and responsibilities of all members should be laid down in “Deed of Partnership.”

Process of LLP registration

Step-1

Designated Partners identification number (DPIN)

DPIN is mandatory for all the proposed partners of the limited liability partnership firm. Form DIR-3 is filed to obtain DPIN. A scanned copy of Aadhar card, as well as PAN card along with the form, has to be submitted, which has to be signed by the company’s secretary or director of LLP.

Step-2

Name Approval

Selecting a name for the limited liability partnership firm is the third step under the LLP registration procedure. The applicant has to form an LLP-RUN form. Te name has to be unique and non-offensive. An applicant provides two names, which are further analyzed by the registrar of the company. In case of rejection, you can again submit your form after 15 days.

Step-3

Filing of Incorporation Form

Once the name has been selected, you can further move ahead to the incorporation of your firm. Form for incorporation of limited liability partnership, i.e., FiLLiP, is to be filed. It is registered with the registrar of the firm, and a prescribed incorporation fee is to be paid.

Documents are duly checked by the authorities, and after that, the incorporation certificate is issued.a

What are the post compliances for registration of LLP?

Once the LLP is incorporated, post compliances are to be fulfilled. The post incorporation compliances are-

·         LLP agreement

It is an important document that defines the rights and duties of all the members of the LLP firm. It is done to avoid future conflicts and disputes in partners. LLP agreement should be filed within 30 days of incorporation of LLP. It has to be printed on the stamp paper and duly signed by all the partners.

·         Apply for PAN & TAN

A firm cannot open a bank account without PAN or TAN

·         Bank Account Opening

After getting PAN, open your bank account in the name of the registered firm.

What are the factors to be considered while selecting a name for the company?

The factors that are considered while selecting the name are as follows-

Meaningful

The name of the corporation should be related to your business. It should resemble the company’s branding.

Short & Simple

The name of the company must be quick and straightforward. Easy pronounced by people, and they can remember the company name in the first instance.

Unique

Name of the company should not be identical to an existing company, business or trademark

Blacklist

Abstracts, adjectives, and generic words are blacklisted.

No existing Trademarks

No certified trademark or any identical name on the IP India website should be used.

Suffix

The name of the LLP company must finish with the suffix “LLP” as in limited liability partnership.

Descriptive Name

The name should describe a little about the type of business you are in.

Illegal or offensive

Make sure you don’t go against the law. The name should not be abusive or against any customs or beliefs of any religion and doesn’t harm anyone.

Types of Forms Applicable for LLP

What is the cost involved in LLP Registration Process?

The government fees for filing forms areas follows-

How much time involved in the Registration Process?

LLP Registration takes approximately 15 days, according to the availability of all the documents.

Conclusion

The introduction of a Limited liability partnership will provide a new option for partnerships that are anxious about their exposed liability. Because of the growth of the Indian industry, LLPs will contribute to the growth of the sector and a large number of existing companies, public as well as private. LLP registration in India has become more comfortable after coming of the Limited Liability Partnership Act, 2008. In case of any query, contact Corpbiz.