how to register llp in india
This article explains the complete step-wise procedure forregistering an LLP in India. In upcoming sections, you will read details onexact process, documents needed for LLP registration, Form to be filed for LLPregistration and comprehensive guide for you to understand all about LLPregistration in India.
Limited Liability Partnership (LLP) was introduced in Indiaby way of the Limited Liability Partnership Act, 2008. A Limited LiabilityPartnership (LLP)is a partnership in which partners have limited liabilities.It therefore can exhibit elements of partnerships and companies both. In a LLP,each partner is not responsible or liable for another partner’s misconduct ornegligence.The process is simple and quick. For more information, get in touchwith ebizfiling.com for expert business registration services.
In addition to LLP registration, ebizfiling also offers avariety of business registration services like private limited companyregistration, one person company registration, Nidhi Company Registration andIndian Subsidiary registration. The average time taken to complete a LLPregistration is about 15 – 20 working days, subject to government approvals.Get a free consultation on LLP registration and business setup in India bygetting in touch with ebizfiling compliance manager at 9643203209.
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Step 1: ObtainDigital Signature Certificate (DSC)
Every form or application filed online with the MCA,requires to be signed digitally by the applicants and partners of the LLP.Therefore, the DSC with usually a validity of 2 years is obtained for theDesignated Partners of the Limited Liability Partnership. The DSC is associatedwith the PAN card of the application. It additionally requires passport sizephotograph and address proof.
Step 2: Obtain LLPName Approval
The applicant has to then file a web form named RUN-LLP(Reserve Unique Name – Limited Liability Partnership). RUN-LLP has replaced the old form LLP Form 1.The new form has been simplified that requires information related to thedesired name, its significance and other basic details. Get ebizfiling expertshelp to secure your desired LLP name.
The application can be made with maximum 2 names inpreference order providing their significance. The names must comply with theapplicable provisions for name reservation. If none of the names is approved bythe MCA, another chance is provided to apply two more names.
Once the name is allotted for LLP, it is reserved for aperiod of 90 days from date of approval.
Step 3: LLPIncorporation (including DIN Application)
The major change in the new process is this step andapplication. Earlier, the incorporation application was required to be filed inLLP form 2, which is now replaced with FiLLiP (Form for incorporation ofLimited Liability Partnership). The most significant part is integration of DINAllotment Application with incorporation application. Below mentioned are thefeatures of the application:
DPIN/DIN application for maximum 2 Designated Partners (DPs)can be made under the application. If there are more than 2 DPs who do not holdDIN, they can be added later by following respective filings. Know more on howto apply for DIN for additional partners.
With this form, the application for name reservation canalso be made. However, that is kept at the option of the applicants. Theapplicants can either choose to reserve name through LLP-RUN or under thisform.
The application is accompanied with required documents includingthe subscriber’s sheet and registered office address proof. The e-form will bedigitally signed by the partners through their DSC and certified by thepracticing professional (CA/CS/CWA). Documents required for LLP registrationhave been explained in a separate article.
Step 4: Processing ofLLP Application
The application will be processed for approval by CentralRegistration Centre (CRC). If the registrar finds it necessary to call forfurther documents or information, it may do so by directing for re-submissionwithin 15 days. Another opportunity of re-submission maybe provided afterre-examination of application, which again has 15 days period. Total period forre-submission of documents does not exceed 20 days in total.
Upon approval of the application made for LLP registrationonline, the Certificate of Incorporation (CoI) will be issued in form 16 alongwith DPIN/DIN allotted to the Designated Partners. CoI will also consist of theLimited Liability Partnership Identification Number (LLPIN). The date of CoIwill be the date of LLP incorporation since when it has come into legalexistence. The business can now be commenced in LLP’s name.
Step 5: Apply for PAN
Unlike the in case of company, the application for PAN isrequired to be made separately for LLP through offline or online mode. Theapplications are made directly to the Income Tax Department and also processedby it. The applications are made in form 49A with Certificate of Incorporationas supporting proof.
Step 6: Apply for TAN
Application for TAN is to be made by applying in form 49Bthrough online or offline modes. Know more here on what TAN is and why you needit.
Step 7: Preparing andFiling of LLP Agreement
This is an important step of LLP incorporation procedure. AnLLP Agreement has to be drafted very carefully and should take intoconsideration various points. The name, business object, place of business andall other essential details of LLP will be taken care of in the Agreement.Other clauses will be capital, profit sharing ratio, rights andresponsibilities of partners, etc. EbizFiling experts are at your help to draftan LLP agreement which will contain all required clauses.
Once the LLP Agreement is reviewed and agreed upon by thepartners, it will be executed by payment of stamp duty. The agreement will beexecuted by payment of stamp duty, which depends on the respective State StampAct where the registered office of the LLP is situated. Then with signature bypartners and attestation by the witnesses, the agreement will be executed.
Note: The agreement must be filed with MCA within 30 days ofdate of incorporation. The delay means a penalty of Rs 100/day from the date ofdefault till the date of actual filing.
This is filed in LLP form-3. Further, the verification andapproval is processed by the concerned State RoC instead of CRC.
Step 8: Obtain GSTRegistration for LLP
GST Registration for LLP is the last step. GST Registrationis not mandatory for an LLP. However, it is required to be obtained if LLP isexpected to deal in inter-state transactions. It is advisable to obtain GSTRegistration if LLP proposes to incur expenses or buy goods, which have GSTelement in the same. You can know more on GST Registration by consulting GSTexperts at Ebizfiling.com.
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