We are convinced that as an entrepreneur, you have already done your fair share of study on the type of business structure that will work best for your operation. If you’ve decided to form a Limited Liability Partnership (LLP), we can assist you in both taking your final roster and easily following the enrollment process.
The advantages of both partnership and private limited company business formats are essentially combined in the LLP structure. This indicates that the advantages of the two structures are fairly balanced. But first, let’s briefly go over the fundamentals!
- Under the LLP Act 2008, the LLP idea was first established in India.
- In addition to having independent legal status from the corporation, the chosen partners benefit from operational flexibility.
- Only their share of the company’s contributions makes the partners financially responsible.
- Compared to other business arrangements, an LLP has a lot fewer compliance requirements to follow.
- An LLP company structure requires a minimum of two partners, one of whom must be an Indian citizen who has resided in India for at least 182 days in the year prior.
- Along with the provisions stated in the LLP agreement, the selected partners’ rights and obligations must also be included.
These are a few of the primary explanations for why LLP registration has developed into one of the most popular business structure types in India. The duration of the registration process is 15 to 18 working days. It’s simple to comprehend and adhere to now. To complete the registration procedure swiftly and easily, you will require the assistance of a working expert. This is where LegalWiz.in comes into play! at the very beginning!
Step 1: Purchasing a Digital Signature Certificate
The LLP registration process in India is completed online, making the acquisition of DSC for each authorized partner a need. Prior to submission to MCA, all documents will be digitally signed using the DSC. To apply for DSC, each designated partner must submit their PAN card, identity documentation, proof of address, and passport-size photo.
Step 2: Obtaining a Director Identification Number
Another required document for all of the LLP’s approved partners is the DIN. For this procedure, the DIR-3 form is provided. The state’s ROC (Registrar of Companies) assigns each Partner their own DIN. Along with the self-attested copies of Aadhaar and PAN cards, the DSC of the professional and the selected partners is also necessary.
Step 3: LLP Name Approval
You must exercise extreme caution in this step while choosing the company’s name. For LLPs, the MCA portal is used to file the RUN-LLP (Reserve Unique Name – Limited Liability Partnership) form. Our team will check the name’s availability before submission to ensure that it is completely unique and there are low chances that it will be denied for one reason or another. Two name suggestions may be submitted together with the form for approval. If the names are rejected, you will have one more opportunity to provide two other names.
Step 4: The final form to be submitted to register an LLP company in India is the LLP Formation FiLLiP (Form for incorporation of Limited Liability Partnership). The designated partners may use this form to apply for a DIN if they do not already have one. When the FiLLiP is approved, a certificate that can be used as legal proof to conduct business in India is issued. Additionally, all LLP firms incorporated in India are given a 7-digit identifier called the LLPIN (Limited Liability Partnership Identification Number).
Step 5: PAN and TAN applications
PAN (Permanent Account Number) and TAN (Tax Account Number) are crucial for legally conducting commercial operations and submitting the required paperwork to the Indian government. The practicing professional must submit a separate application along with forms 49A and 49B in order to obtain a PAN and TAN for the LLP.
Step 6: LLP Agreement
The regulations and obligations of the selected partners in the company are contained in the LLP Agreement, which is a crucial document. On the MCA portal, Form 3 is submitted in this regard. It must be submitted within 30 days of the LLP’s registration; else, late filing fees will be assessed. The agreement must be printed on stamp paper as soon as you get it. Every state has a different stamp duty that is based on the authorised capital and is computed differently. You can check the stamp duty rates for the LLP Agreement by state here.