Limited Liability Partnership Registration Process

Limited Liability Partnership is a form of partnership with limited liability to its members. It was introduced in Limited Liability Partnership, 2008 with a minimum of two designated partners needed to incorporate an LLP.  There is no maximum limit of partners for an LLP. An LLP Agreement includes the rights and duties of designated partners.

The registration process for LLP is given in the following steps:

Step 1: Application for Digital Signature Certificate

Every designated partner must have Class III DSC which is essential for the signing of electronic forms.

Step 2: Application for Director Identification Number

Every designated partner must apply for DIN in the application form for allotment i.e., E-Form DIR-3. The form should be signed by a company secretary in employment.

Step 3: Name Reservation and Approval

A reserve unique name service for the proposed name of LLP after completing the name search facility on the MCA official portal. The proposed name should be different from the existing name of the LLPs.

Step 4: LLP Incorporation

• The incorporation form is FiLLiP (Form for incorporation of Limited Liability Partnership) filed with the registrar.

• The application of DIN can be made under the same form.
• The application for Name Reservation can also be made under the same form.

Step 5: Filing LLP Agreement

The LLP agreement contains the mutual rights and duties of the partners.

• Form 3 must be filled with the attachment of the LLP agreement on the MCA portal.
• It has to be filed within 30 days of incorporation form being submitted.

The list of documents required for LLP registration is as follows:

• PAN card of partners
• Identity proof of partners
• Address proof of partners
• Photographs
• Passport in case of foreign nationals
• Digital signature certificate of one of the designated partners.
• Proof of registered office address
• Description of Business activity and Code of Business Activity to be carried by the LLP
• Main object of the LLP
• Contact information of the partners with phone number and email ID.

The government cost for filing incorporation forms is depending upon the capital contributed by the partners. When a capital contribution is up to Rs. 1 lakh then five hundred rupees is charged and between Rs. 1 lakh to Rs. 5 lakhs then two thousand rupees is charged.

The essential features of an LLP are given as follows:

1. Distinct Legal Entity

Unlike Partnership firms, LLP has its assets and liabilities in the name of the organization and the contracts are also entered in the name of the firm.

2. Sharing of Profit and Losses

The profit and losses of the business are shared in the ratio as decided by the designated partners.

3. Partners can be an Individual or Company

The designated partners can be an individual or company or either of these two. The minimum requirement of partners for an LLP is two and there is no maximum limit provided by the law. An individual must have a sound mind and solvent and there should be no pending application in the court.

4. No Minimum Capital Required 

An LLP is incorporated with minimal contribution as the capital of the firm.

5. Mutual Agency of Partners

All the designated partners can act as an agent and unlike partnership firms, the action of one partner does not bind all of them.

6. Limited Liability of Partners

As per the relevant provisions of the Act, a designated partner is not an agent of other partners and liability is also limited to an agreed contribution to the firm.

7. Conversion into LLP

A private company can convert into LLP with provisions of the Limited Liability Partnership Act, 2008.

Conclusion

The Limited Liability Partnership Act, 2008 governs the compliances of an LLP and the two annual returns filled are the annual return and Statement of Accounts. The compliances of LLP are relatively lesser in comparison with a public or private company.

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