In today’s era of emerging start-ups and SME’s the most popular question people often ask is that ‘Which is the most suitable business structure one can opt for commencing a business? We always say that the suitability of the form of organisation depends upon the factors like:
- Type of Activities the business will carry
- The initial Capital/Contribution
- Applicable Compliances etc.
The Limited Liability Partnership (LLP) Registration is a like nature with Private Limited Registration, yet the LLP Registration is getting popular and being preferred among the selective group of entrepreneurs specially who are in service sector especially amongst the group of professionals as it gives benefits of both the partnership and the company into a single form of organisation.
Introduction of LLP in India
The concept of Limited Liability Partnership was introduced in the year 2008 by the Government of India. The Ministry of Corporate Affairs (MCA) is the regulating authority for the Limited Liability Partnership Act, 2008.
However, in this write-up we will discuss about LLP Registration Online in India and the documents required for LLP Registration.
What are the prerequisites of LLP Formation Online
- The minimum number of designated partners shall be at least two and one of them should be the resident of India.
- The initial Capital Contribution signifies the amount which is introduced by the Partners of the LLP at the time of incorporation. However, there is no as such minimum contribution required by the partners of the company.
- Digital Signature is required to sign all the E-forms digitally. Therefore, the applicant must ensure that the DSCs are ready beforehand.
We can broadly classify the LLP registration process in 3 Steps
- Form for Name Reservation: RUN LLP
- Form for LLP Registration: FiLLiP
- Form to submit LLP Agreement: Form 3
Now, let us understand all the three steps in detail
RUN LLP for Name Reservation
The first step to commence any business is to select the name of the company which the business is carried on. The name should be desirable and not offensive to any section of the society. The RUN LLP is web-based form for name reservation. Once the name application is approved, the applicant can proceed to the incorporation process before the expiry of the approved name i.e., 3 months from the date of approval.
FiLLiP for LLP Registration
As mentioned above, after the name is approved, the applicant has to file the application for Incorporation of the LLP within 3 months from the date of approval. This application is submitted in Form FiLLiP.
Purpose of Form FiLLiP
FiLLiP is an integrated form which aims to simplify the incorporation process of LLP and its registration with the Registrar of Companies (RoC). Through FiLLiP, apart for Registration of LLP with RoC, the applicant may avail other service like – Application for allotment of Designated Partner identification Number (DPIN), Application for PAN/ TAN allocation, etc.
What are the documents required to be attached along with FiLLiP?
- Proof of Address of the Proposed LLP:
- Copy of the utility bills (not older than two months)
- No Objection Certificate (NOC) from the owner of the Property.
If the Property is on Conveyance/ Lease/Rent – Conveyance Deed/ Lease Deed/Rent Agreement along with rent receipts.
Documents of Designated Partners/ Partners:
- Self-attested copy of PAN (Mandatory)
- Self-attested copy of Proof of Identity – (Voters Identity Card/Passport/Driving License/Aadhaar)
- Self-attested copy of Residential Proof, not older than 2 months – (Bank Statement/Electricity Bill/Telephone bill/Mobile Bill)
LLP Subscribers’ Sheet including consent:
It contains all the details of the subscribers of the LLP along with the Photo and Signatures of Designated Partners (DP). It also contains a written declaration by each DP that the information written in the subscriber sheet is true and correct and the same shall be witnesses by a Person.
Form 9: It is an auto-generated web-based form which is filed as an attachment along with FiLLiP form. It contains the consent by Designated Partners to act as such in the Proposed LLP.
Valuation Report (Conditional Attachment): This attachment is mandatory to attach by the applicant only if the Partner has contributed the subscription money by way “Other than cash”.
Once all the information/documents are compiled, the applicant has to file the FiLLiP form. The CRC (MCA) will scrutinize the form submitted by the applicant. Where the Department finds the form in order, he may approve the application and issue Certificate of Incorporation (COI), PAN and TAN of such LLP.
Otherwise, the application is marked as ‘Resubmission required’, along with the reasons of the same. For the application that is marked ‘Resubmission required’, the user is required to update the details in the web-form and complete submission (including the upload of DSC affixed pdf) within 30 days from the date of receiving the resubmission.
You might think that as the COI is already issued by the MCA, why it is necessary to file Form 3? Refer the below discussion.
SUBMISSION OF THE LLP AGREEMENT – FORM 3: LLP AGREEMENT
Pursuant to Section 23(2) and (3) of The Limited Liability Partnership Act, 2008 read with Rule 21(1) of Limited Liability Partnership Rules, 2009.
Form 3 is required to be filed with the MCA within 30 days from the date of incorporation of the LLP for filing information regarding LLP Agreement. LLP Agreement is the written agreement between the partners of the Limited Liability Partnership (LLP) or between the LLP and its partners for establishing the rights and duties of the partners toward each other as well toward the LLP.
Applicant has to file Form 3 along with the duly notarized LLP Agreement. Once the Form 3 is filed and approved by the Department, the LLP is said to Incorporated successfully in all respect.
If you are looking for LLP Registration, we at Compliance Calendar LLP have the dedicated group of professionals who are experts in their field and can give you a complete handholding throughout the LLP Registration Procedure. If you have any query, please feel free to reach us at [email protected] or call us at 9988424211.