Limited Liability Partnership (LLP) has become a preferable form of organization among entrepreneurs as it incorporates the benefits of both partnership firm and company into a single form of organization. It is governed by the provisions of Limited Liability Partnership Act, 2008.
Features of LLP
- It has a separate legal entity like companies
- The liability of each partner is limited to the contribution made by them
- The cost of forming and running LLP is low compared to companies
- Less compliance and regulations
- No requirement of minimum capital contribution
Number of partners = Minimum 2, Maximum No limit
Number of designated partners = Minimum 2 (at least one should be resident in India)
Charter of LLP = LLP Agreement
Process of Registration as LLP
Step 1: Obtain DSC
Before initiating the process of registration, you must apply for class 2 digital signature of the designated partners of the proposed LLP. This is because all the documents for LLP are filed online and are required to be digitally signed.
Step 2: Name Approval
File ‘RUN LLP’ which is a web service in which you can fill 2 proposed names of LLP. RUN LLP can be accessed after login to MCA. RUN LLP will be processed by Central Registration Centre (CRC).
Step 3: Incorporation of LLP
Form FiLLiP is the application form for the incorporation of the LLP. FiLLiP will be an integrated form offering multiple services viz. allotment of DIN, Reservation of Name and Incorporation of LLPs. Consequent upon notification of FiLLiP, existing Form 2 will be replaced with these new form.
Attachments of FiLLiP
- Subscribers Sheet and Consent
- PAN Card and Aadhar Card of Partners and Designated Partners
- Proof of Registered Office like Sale Deed/Rent Agreement etc
- Utility Bill like Electricity/Gas/Telephone Bill (NOT OLDER THAN 2 MONTHS)
- NOC of owner to use premises as Regd office of Company
- Details of LLP and Company in which partner/designated partner is a Director/Partner
Step 4: File LLP Agreement
LLP agreement governs the mutual rights and duties amongst the partners and also between the LLP and its partners. LLP agreement must be filed within 30 days of incorporation in form 3. The LLP Agreement has to be printed on Stamp Paper. The value of Stamp Paper is different for every state.