In India the process of registration of a LLP is governed by Limited Liability Partnership Act, 2008[1]. The concept of Limited Liability Partnership was introduced by the act of 2008 and a LLP combines both the concept of a company and a partnership in one legal entity. The document below covers the entire procedure of formation of a LLP, the legal requirements and the documents required for registration of an LLP in India. For the sake of brevity the write up has been categorized into three parts.
I. Basic Legal requirements for registration of a LLP
Names of minimum two persons as Partners. A capital of minimum Rs 10,000 to be deposited in the account of LLP after its incorporation within 30 days which can later be used for the affairs of the LLP LLP Drafting Agreement. Six proposed name of the new LLP to be formed. Affidavit notarized and signed by Director for DIN1 form. Consent from Designated Partners Signatures of Chartered Accountant (in whole time practice) or Company Secretary ( in whole time practice ) on the various formsII. Documents required for registering a company:
Photographs of Partners s in JPEG format Self attested copy of Pan Card of the Partners Self attested copy of address proof of the Partners Address proof of place of registration of the LLP The signature of partners on the LLP Agreement III. Procedure for Registration of a LLP:
Obtaining DIN and DSC: The first step in this regard is to obtain a DIN for all the directors and DSC for one of the Directors. The DIN can be obtained for filing a form DIN1 with the ministry of corporate affairs. A DSC is also required for one of the Directors of a company as the Director is the person who is legally authorized to represent the LLP and sign on its behalf in the various forms that are required for registration of a LLP in India.
Preparing list of proposed and filing of the form for name approval: After obtaining the DIN (Director’s Identification Number) and DSC the next step is prepare a list of six proposed names of the LLP. The six names proposed should have some relevance with the affairs of the LLP. Along with this two proposed names for Director is also required to fill up the relevant form with the Roc for Name Approval. A Form 1 is e-filed with the registrar of companies for name approval. The name availability rules should also be considered while deciding the name of the LLP.
Filing the Incorporation document and Preparing the LLP Agreement: After the name has been approved now comes the step of filing the incorporation document which is in form of Form 2. After this the LLP agreement should be drafted. The LLP document should be printed on a stamp paper and signed by both the partners. The stamp duty on the agreement would vary from state to state. After the certificate of incorporation is received after e-fling form 2 the LLP Agreement should be filed by filing Form 3.
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[1]Copy of the act available at http://www.mca.gov.in/Ministry/LLP_act.html