Limited Liability Partnership
Limited liability partnership is a form of business partnership where partners have only limited liability. It combines the advantages of partnership as well as the advantages of limited liability firms. In limited liability partnership one partner cannot be held liable for another partner’s misconduct.
LLP registration in India
Let us go through some of important steps in LLP Registration in India. By reading it it is easy to understand how to register a LLP in India. The procedures for registering an LLP in India are as follows;
1) Firstly registration for LLP has to be done on the ministry of corporate affairs.
2) After filing the registration form, you can select your username and password, and then upload your digital certificate.
3) If the registration of LLP is successful, then the system will give a message which says registration has been completed successfully.
4) The next step is obtaining identification number of designated partner (DPIN). For this an application has to be filed online in form 7. For obtaining form 7, first you have to enter your username and password in the login tab of the home page. Then the list of e forms will be available in the e forms link which consists of form 7. A filing fee of Rs 100 has to be paid online.
5) When the form is submitted online, the system will provide a provisional PIN number which has to be note down.
6) Next the printout of the application form has to be taken and a latest photograph has to be pasted. This form should be attested and should be submitted with proof of identity and proof of evidence with the registrar of LLP.
7) This application form has to be submitted either by hand or post to the following address- Office of Registrar, Ministry of Corporate Affairs, 3rd Floor, “Paryavaran Bhawan”, CGO Complex, Lodhi Road, New Delhi-110003.
8) The tab ‘certifying authorities’ in the home page consists of details which says that the partners signatures are to be affixed on the e-forms and has to obtain class 2 or class 3 Digital Signature Certificate (DSC) from any authorized certifying agency.
9) For reservation of name first log on to the portal. In the e forms
Fill the form 1 for reservation of name. Here the name of LLP can be selected. Any partner may submit form 1. The digital signature has to be put and the form can be submitted. Fees have to be paid online.
10) On MCA portal you can search to see whether there are similar names. In the reservation of name, details of minimum two designated partners of the proposed LLP should be mentioned out of which one of them must be a resident of India. You can check the status of your application by logging on the portal.
11) For incorporation of LLP – after the reservation of name you have to fill up form 2 that is the incorporation document and statement. Fees required to be paid will be as per annexure a of LLP rules of 2009.
12) A person having permanent DPIN number can digitally sign whose name is there in the incorporation document and also by an advocate, chartered secretary and accountant or cost accountant engaged in the formation of an LLP.
After submission of documents of the registrar is satisfied, will register the LLP within 14 days of filing of form 2. The certificate of incorporation will be issued that is form 16. The status of your application will be available on the portal.
Limited Liability Partnership Agreements
This is an agreement used to establish a new partnership firm or transfer an existing to an LLP. This agreement will be usually between the LLP members in regard to the internal workings of the LLP. The agreement will usually include the profit sharing ratio, admission of new partner, retirement, management and decision making etc.
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