Limited Liability Partnership
The Limited Liability Partnership Registration, governed under the Limited Liability Partnership Act 2008, combines the advantages of a partnership with a limited liability company. LLP was introduced to provide a type of business that is easy to manage and assist owners by providing them with limited liability.
How To Register An LLP Company Online
Benefits of LLP
Things need to consider while choosing a name for your LLP in India
The Registrar of Companies (ROC) has issued naming guidelines for the LLP. It is crucial to follow the rules closely or your application may not receive approval, which can make the process too long.
● Unique Component:
The name must be unique in the related category. For example, in AlphaBeta Internet Private Limited, AlphaBeta is the unique component. Now, once taken, no other business can be named in Internet related categories.
Abbreviations, adjectives and general terms are rejected. So XYZ is rejected as good quality biscuits. The word bank, exchange and stock exchange can still be rejected unless approved by RBI or SEBI.
● No Common Trademark:
There must not be a registered trademark by the same name on the IP India website. If there is one, then you have to get a No Objection Certificate from its owner, the name will be accepted if you authorize its use.
● Descriptive Component:
Biocon Research Pvt. Ltd., The term ‘research’ refers to the business of the company. If you are in the logistics or restaurant business your name should not be ‘research’.
Steps to form a limited liability partnership
- Step 1: Digital Signature Certificate (DSC)
You have to apply for the digital signature of the designated partners of the proposed LLP before starting the registration process This is because all the documents for the LLP are registered online and digitally signed.
- Step 2: Director Identification Number (DIN)
You must apply for the DIN of all designated partners or designated partners of the proposed LLP.
The application for DIN allocation should be made in DIR-3. A copy of the documents you scanned (usually attached in the form of Aadhaar and PAN. This form will be signed by the Company Secretary in the full-time job of the company or signed by the existing Managing Director / Director / CEO / CFO. Company.
- Step 3: Reservation of Name
The name of the proposed LLP for reservation will be submitted to LLP-RUN (Limited Liability Partnership-Reserve Unique Name), which is processed by the Non-STP Central Registration Center. It is suggested that you use the free name search facility on the MCA portal, before writing the name in the form.
It helps to choose names that do not match existing names. The registrar will approve the name. If is not unpleasant according to the central government and is not similar to the existing company names. The contract requires the submission of a RUN-LLP form with a fee, which can be approved / rejected by the Registrar. Permission will be given within 15 days to resubmit the form to correct the errors. There is also a provision to provide 2 proposed names of LLP.
- Step 4: Incorporation of LLP
- The form used for incorporation is FiLLiP(Form for incorporation of Limited Liability Partnership) This form will be filed with the Registrar who has jurisdiction over the state in which the registered office of the LLP is situated. The form will be an integrated form.
- Fees as per Annexure ‘A’ shall be paid.
- This form also provides for the person to be appointed as a designated partner to apply for a DPIN assignment if he or she does not have a DPIN or DIN.
- Only two people are allowed to apply for the allotment
- Applications for reservation can also be made through FiLLiP
- The application for reservation may be made through FiLLiP too.
- If the name that is applied for is approved, then this approved and reserved name shall be filled as the proposed name of the LLP
- Step 5: File Limited Liability Partnership Agreement
LLP agreement governs the mutual rights and duties amongst the partners.
- It has to be filed online on MCA portal form 3
- For LLP agreement form 3 has to be filed within 30 days of the date of incorporation.
- The Agreement needs to be printed on Stamp Paper and the price of Stamp Paper is different for every state.
Documents Required for LLP Formation
- Documents required for partners:
PAN Card or ID Proof of partners: This acts as a primary ID proof.
Address proof of partners: One must submit any one document out of Voter’s ID, Passport, Driver’s license or Aadhar card. An address proof, such as; a driving license, bank statement, residence card or any government-issued identity card that contains the address is required for all Foreign nationals who want to register as a partner in LLP.
Residence Proof of Partners: Latest bank statement, telephone bill, mobile bill or a gas bill has to be submitted as a residence proof.
Photograph: Partners should also provide their white background passport size photograph.
Passport is required in case of Foreign Nationals and NRI’s.
- Documents required for LLP:
Proof of registered office address: Proof to be submitted at the time of registration or within 30 days of its incorporation. If the registered office is rented then a lease agreement or no objection certificate must be obtained from the landlord.
Digital Signature Certificate: A DSC is important because all documents and applications are digitally signed by an authorized signatory.