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Limited Liability Partnership or also known as LLP is a relatively new concept that was introduced by a statute in 2010. It gives the benefit of a partnership and a company, where in the liability of the partners is limited while the same is absolute in a regular partnership. An LLP is a legal person and has a separate legal identity like a company does, where the liability of partners only extends to the amount they have contributed or have invested in the Limited Liability Partnership.
- A Limited Liability Partnership doesn’t need any minimum capital, much like a partnership.
- It can be incorporated with only two or more partners, but it is pertinent to note that at least one of them needs to be a Indian resident according to the Income Tax act.
- The said partners must be governed by an Limited Liability Partnership agreement which elucidates the rights and liabilities of the partners involved.
LLP Registration Process
The process can be undertaken on the government website designated for Limited Liability partnership: www.llp.gov.in
- Application for DIN or DPIN (Director Identification Number)
The partners must apply for the “Designated Partner Identification Number (DPIN)”.
This can be obtained by filling a eForm DIR-3 .
Exception: If the partners are already in procession of a DIN (Director Identification Number), it can be used as a DPIN.
- Register Digital Signature (DSC)
DSC is provided for under The Information Technology Act, 2000 for the security and authenticity of the documents filed electronically.
DSC is issued by a certifying authority under Section 24 of the Indian IT-Act 2000.
(Processed though http://www.mca.gov.in/MinistryV2/registerdsc.html )
- New User Registration
This can be done at http://www.mca.gov.in/mcafoportal/loadUserRegistration.do?link=loadUserRegistration .
- Incorporate a LLP
Has to be done by by filing Form 1 (available on the MCA website). After this Form 2 must be filled. After approval of the forms an email will be sent.
- File LLP Agreement
A LLP agreement is to be filed within 30 days of incorporation of LLP in Form 3.
- PAN Card of the Partners, passport for NRIs
- Address Proof
- Passport Photographs of partners
- Proof of Registered Office Address
- Digital Signature Certificate
Incorporation and LLP agreement cost will depend on the capital contributed, if its below 1 lakh then its Rs 500 and between 1 -5 lakhs is Rs 2000 for incorporation and Rs 50 plus stamp duty costs for LLP agreements.
- What is the minimum number of Partners required to start a Limited Liability Partnership?
- Can I register the LLP at my home address?
Address of the office is also required
- How to do LLP registration?
Process detailed in steps online.
- How to cancel LLP registration?
The LLP Act provides for this, Form 24 needs to be filled for voluntary winding up.
- How to check LLP registration status
Can be checked in the online portal.
- Whether LLP can be converted?
Can be converted into a Pvt company according to S 366 of the Companies Act.