How to Register LLP in India

In India, the limited liability companies are better known as the Limited Liability Partnerships (LLPs). In ours this generous and benevolent web article, we are providing detailed and highly productive information about how to register LLP in india, for doing a secure and profitable business in any cherished economic field, anywhere in the entire country. Our worldwide prominent full-service law firm of India has been offering the full gamut of legal and supporting services for business establishments and progress. Efficient, superb, and brisk services for LLP registrations are an essential and very significant part of ours legal services for company formation in India and abroad.

The outstanding and most impressive features of an LLP are – ease of formation and registration, no minimum capital requirement, benefits of limited liability and tax concessions like an incorporated company along with the great flexibility of a partnership, minimal regulatory compliances, perpetuity and international recognition, direct and flexible business management, and all partners have limited liability and they are not responsible for the acts (mistakes, negligence, or incompetence, etc.) of other partners.

Selection of Partners and Formation of the LLP

For formation of a limited liability partnership company in India, there are essentially needed at least two designated partners, one of them must be a resident of India (who stayed anywhere in the country for a time-period not less than 182 days in the nearest preceding financial year). There is no restriction placed on the maximum number of partners to any proposed LLP. For an LLP formation, its registration, and its strict regulation and control in India, immediately concerned are the Indian Limited Liability Partnership Act (LLP Act) of 2008, and the LLP Rules of 2009. And, the Ministry of Corporate Affairs (MCA), the Government of India is directly concerned for LLP registration anywhere in entire India, through its portal www.llp.gov.in/-.

Obtaining DPINs and Digital Signature (DSC)

At least one Indian partner of the LLP must have the Designated Partner Identification Number (DPIN) and the Digital Signature Certificate (DSC); two designated partners are commonly preferred. However, DPIN is beneficial to all leading partners of the LLP. The DPIN is quite similar to the DIN (Director Identification Number) which is demanded under the Indian Companies Act, 1956. Partners of LLP, who already have a DIN, need not to apply for a DPIN.

For obtaining DPIN from MCA, an application is to be made in Form-7, and submitted all demanded documents and information about the applicant. A digital signature certificate is absolutely necessary for authenticating and securing all sorts of documents which are filed electronically. Therefore, authorized signatories on behalf of the LLP, essentially require DSCs which are duly registered with the MCA. A digital signature can be acquired from any licensed Certifying Authority (CA) located in any place of India. Necessary information about the CAs in India, can promptly be obtained from the MCA portal.

New User Registration

In order to file an e-form or to seek any paid services on the LLP Portal of MCA (www.llp.gov.in/-), there is a prescribed need to make a New User Registration, under the pertinent user category, such as registered and business user.

Name Approval

A maximum of six proposed names for the LLP are permitted to be sent for governmental approval and reservation. Selection of these names must be made as per the guidelines issued by the Ministry of Corporate Affairs (MCA). For name reservation, filed is the Form-1, with the www.llp.gov.in/-.

Preparing LLP Agreement

The LLP Agreement is the main administrative and managerial document for a limited liability partnership firm. It corresponds to the MOA and AOA of any incorporated Corporation. As per the rules, regulations, and provisions contained in this LLP Agreement, all internal and external works and activities of the LLP are governed and managed by the designated partners. This LLP Agreement is framed as per the provisions given in the Indian LLP Act of 2008. This vital and very significant agreement could be conveniently submitted at the time of incorporation or a maximum of thirty days after the incorporation of the concerned LLP. In case there is submitted no such LLP Agreement by the designated partners to the registrar, then the rules and provisions given in the Schedule I of the LLP Act of 2008, shall be applicable.

Submitting Forms and Documents for Incorporation

After getting approval to and reservation of any of the proposed names of the LLP, the application for incorporation is to be made with www.llp.gov.in/-, through the Form-2, Form-4, and Form-3 signed digitally. The prescribed fees for LLP registration, depending upon the total capital contribution by all partners, are given in the Annexure A of the LLP Rules, 2009. After thorough and scrupulous examination and verification of the forwarded information and documents, issued will be the Certificate for LLP Incorporation in Form-16, within 15 days of filing these forms.

Form-2: This form contains all information and documents required for LLP incorporation, such as the location of the main office, details of the partners, statements, etc.

Form-3: This gives detailed information about the appointments of the designated partners, and their separate consents for acting responsibly as a partner of the entity.

Form-4: This offers detailed information about the LLP Agreement, based on the rules and provisions of which the registered LLP will be run and managed in future. This Form-3 can also be filed within thirty days after the date of incorporation of the proposed LLP.