Name – Shweta Pandit
College - National Law School Of India University, Bangalore.
LLP- Limited Liability Partnership, is a partnership where partners have limited liability and are responsible only for the loss/damage created by themselves and not by any of their partner or partners. Partners in LLP have a fair share of say in the workings of the business.
Registration of LLP- It is a long process to register a LLP, the few steps involved in the process are discussed as follows: First step is to get the DSC, which is a Digital Signature Certificate from the government agencies such as E-Mudra, NSDL, IDRBT Certifying Authority, National Informatics Center, CDAC and each agency has its own costs of providing services.
DPIN- In LLP a partner is designated with a Partner Identification Number i.e. DPIN, by the Ministry of Corporate Affairs. DPIN can be obtained at the time of registration of LLP or at a later stage.
Reserve Unique Name- After getting the DSC you will need to select a unique name for your LLP and reserve it under the authority for exclusivity on it. You can even choose the unique name for free from the Ministry of Corporate Affairs portal. After choosing a name that is not very similar to the existing LLP’s name, the registrar will approve the name. The fees and LLP-RUN limited liability partnership- reserved unique name will be submitted along with the proposed fees to the registrar.
Form Of Incorporation- A form of incorporation has to be filled for the limited liability partnership along with the prescribed fees as mentioned in Annexure A. Only 2 individuals are allowed to file applications for incorporation.
Fill Limited Liability Partnership Agreement- LLP Agreement contains the rights and obligations of the partners, and it helps avoiding any dispute for further instances. The LLP Agreement is printed on the appropriate amount of Stamp paper as applicable in your state according to the place of business you are situated in. Form 3 shall be filled online on MCA portal with the required details of partnership agreement within 30 days of incorporation of LLP.
Required Documents for LLP registration- The documents of partners and documents of LLP are required for registration. Identity proofs and PAN of all partners. Address proofs of all partners could be DL, Passport, Voter ID. Passport size photographs with white background of all partners. If any foriegn national or NRI is a partner then his/her passport.
The Documents required by LLP are the address proof of registered office address at the time of registration or can be given within 30 days from the date of incorporation of the LLP. Non Objection Certificate is required if the registered office is a rented place. Any one residence proof is necessary to submit which shall not be less than 2 months and a DSC, digital signature certificate.
FEES Involved in LLP Registration
Benefits of LLP- Partners must be 18 years of age, minimum 2 persons are required in the firm as partners. Only stamp duty is required to be paid. No minimum capital is required for the formation of LLP. One of the partners must be an Indian resident. There is no limit imposed on the maximum number of partners. Must have a unique name for LLP.
Eligibility Criteria for formation of LLP- Partners are only liable for their share of contribution in LLP in case any situation arises to pay the liability. Easy transfer of partnership. If turnover is under INR 40 lakhs, there is no need to do any audit. In LLP the right to own and transfer of property is also there. In case any of the partners dies, the LLP still remains in perpetuity. Right to sue and be sued is also there because LLP is a separate legal entity. No need to pay any dividend tax in LLP.
Time Involved for Partnership- Time that is involved is around 7 to 15 days in total to complete the registration process of limited liability partnership.
Conclusion - LLP is most frequently opted for companies because of its easy registration process and numerous benefits, by start-ups that will not be looking for venture capital funding. This is because venture capitalists only invest in private and public limited companies.
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Paisabazaar. (2021). LLP Registration Process and Fees | Step by Step Guide Retrieved from https://www.paisabazaar.com/company-registration/llp-registration/
Vakilsearch. LLP Registration In India - Online Process, Fees. Retrieved from https://vakilsearch.com/llp-registration-india