15 Doubts You Should Clarify about LLP Registration

Last Updated at: May 18, 2020
5771
15 Doubts You Should Clarify about LLP Registration
Registering a LLP requires an Application for Digital signature Certificate, Designated Partner Identification Number, Reservation of name of the LLP and finally Registration of LLP.

 

When you register your company as LLP one can enjoy several benefits. Thus entrepreneurs and business owners should know about the steps to register their company as LLP. Follow the following steps and you can complete the LLP registration easily without any legal issues.

A Limited Liability Partnership (LLP) is one of the most sought-after forms of business in the recent past as the partners of LLP can enjoy the benefits of both a partnership firm as well as a company in just one single organisation. But how much do we actually know about this form of organization? Here are 15 important things you need to know about an LLP and its registration:

Explore our legal help services to protect your intellectual property, secure funding from Venture Capitalists & comply with the many regulations of the MCA information and resources to help you through your end to end business requirement.

 

    • Separate legal entity: Although an LLP is a hybrid between a company and a partnership firm, where the liability of each partner varies depending on their contribution towards the organisation., it is a separate legal entity. Just like a company, an LLP has a separate legal entity through the cost of forming and running it is comparatively lesser than that of a company.

Register Your Startup Business

  • Conditions for partners: A LLP must have a minimum of two partners (either individual or body corporate). There must be two designated partners appointed for doing all the groundwork needed for an LLP. The designated partner needs to be a resident of India and should be a holder of a Designated Partner Identification Number (DPIN) as prescribed by the Ministry of Corporate Affairs (MCA).
  • Obtaining DSC: A Digital Signature Certificate(DSC) is mandatory for the incorporation of any LLP as all the documents need to be digitally signed while being uploaded online. These DSCs need to be obtained only through recognized certifying agencies.

  • Name reservation: The name of any organization must be unique in order to avoid copyrights problems. The previous method of applying through an application for reservation or change of name (form 1) has been replaced by a new web service called Reserve Unique Name- Limited Liability Partnership (RUN-LLP) which has made the online name reservation process more feasible. In case the LLP has not been incorporated within 90 days of the reserving of the name, the reservation is unblocked and the name is made available for other applicants.
  • Process for RUN-LLP: The original process for reserving the name of an LLP was replaced by the RUN-LLP which has reduced the relevant fields for the Form from 15 fields to just four fields, hence making the process much simpler.
  • Form for Incorporation of LLP (FiLLiP): The second amendment of the Limited Liability Partnership Act of 2018 has eliminated the Form of incorporation and subscriber’s statement (Form 2) and combined the three processes of name reservation, allotment of the Designated Partner Identification Number (DPIN/DIN) and the incorporation of the LLP.
  • Attachments for FiLLiP: Just like every other application form, FiLLiP also has a prescribed a set of documents to be produced along with, such as the subscribers sheet and consent form, details of LLP or the company in which the designated partner is a member of, PAN cards and Aadhar cards of designated partners/directors, proof of registered office like a sale/rent deed, any utility bill (electricity, gas, etc.) that is not older than two months and a NOC of the owner allowing the usage of the registered office as a company.
  • Uses of FiLLiP: The FiLLiP could also be used as an application for a reservation along with being used to apply for DPIN.
  • Other eForms: Apart from the introduction of the FiLLiP and the RUN-LLP, Form 5, Form 17 and Form 18 still remain though with minor modifications. These Forms are again sent to the CRC for being processed.
  • Central Registration Centre (CRC): For making the evaluation and consolidation of documents process, the web-service/ eForms direct all the RUN-LLP, FiLLiP, Form 17, Form 18 and Form 5 documents to a Centralised place by the Registrar of Central Registration Centre (CRC) on behalf of the jurisdictional registrar. This a great alternative that reduces the time taken for processing the documents and catalyses the growth of Indian businesses.
  • Conversion of a company into LLP: Any company can be converted into an LLP if certain conditions are being followed. Every member of the company needs to agree with the conversion into an LLP and by doing so, all members become the partners of the LLP. Apart from members, the creditors also become partners once converted. The latest copy of the Income tax returns must be produced along with the ROC. It must also be made sure that there are no prosecutions against the company under the Companies Act.
  • LLP agreement: Once the name of the LLP is approved, the LLP agreement needs to be formed. The agreement needs to contain instructions about the mutual rights and duties of the partner amongst themselves and also between themselves and the LLP. The agreement must be made within 30 days of incorporation of the LLP and must be made on a stamp paper (of the appropriate value prescribed by the respective state).
  • The absence of an LLP agreement: If there is no LLP agreement, then the provisions of the First Schedule of the Limited Liability Partnership Act, 2008 will be invoked.
  • Cost of registration: Though the LLP does not need a minimum capital it must have a government prescribed fee for each process of registering an LLP. For instance, obtaining a DSC costs around Rs. 1500-2000 for partners approx., a DIN for Rs. 1000 for two partners and Rs. 200 for registration, etc.
  • Time involved: With the introduction of online web services for speedy processing, the entire process right from obtaining DSc to filing Form 3 for an LLP agreement takes approximately 15 days if all the documents are appropriately submitted.

It is true that several doubts would arise when you start with the LLP registration process. A professional can also help you in the LLP registration process. The above inputs offered would be sufficient to clarify your doubts and you can enjoy the benefits of LLP registration.

0

15 Doubts You Should Clarify about LLP Registration

5771
Registering a LLP requires an Application for Digital signature Certificate, Designated Partner Identification Number, Reservation of name of the LLP and finally Registration of LLP.

 

When you register your company as LLP one can enjoy several benefits. Thus entrepreneurs and business owners should know about the steps to register their company as LLP. Follow the following steps and you can complete the LLP registration easily without any legal issues.

A Limited Liability Partnership (LLP) is one of the most sought-after forms of business in the recent past as the partners of LLP can enjoy the benefits of both a partnership firm as well as a company in just one single organisation. But how much do we actually know about this form of organization? Here are 15 important things you need to know about an LLP and its registration:

Explore our legal help services to protect your intellectual property, secure funding from Venture Capitalists & comply with the many regulations of the MCA information and resources to help you through your end to end business requirement.

 

    • Separate legal entity: Although an LLP is a hybrid between a company and a partnership firm, where the liability of each partner varies depending on their contribution towards the organisation., it is a separate legal entity. Just like a company, an LLP has a separate legal entity through the cost of forming and running it is comparatively lesser than that of a company.

Register Your Startup Business

  • Conditions for partners: A LLP must have a minimum of two partners (either individual or body corporate). There must be two designated partners appointed for doing all the groundwork needed for an LLP. The designated partner needs to be a resident of India and should be a holder of a Designated Partner Identification Number (DPIN) as prescribed by the Ministry of Corporate Affairs (MCA).
  • Obtaining DSC: A Digital Signature Certificate(DSC) is mandatory for the incorporation of any LLP as all the documents need to be digitally signed while being uploaded online. These DSCs need to be obtained only through recognized certifying agencies.

  • Name reservation: The name of any organization must be unique in order to avoid copyrights problems. The previous method of applying through an application for reservation or change of name (form 1) has been replaced by a new web service called Reserve Unique Name- Limited Liability Partnership (RUN-LLP) which has made the online name reservation process more feasible. In case the LLP has not been incorporated within 90 days of the reserving of the name, the reservation is unblocked and the name is made available for other applicants.
  • Process for RUN-LLP: The original process for reserving the name of an LLP was replaced by the RUN-LLP which has reduced the relevant fields for the Form from 15 fields to just four fields, hence making the process much simpler.
  • Form for Incorporation of LLP (FiLLiP): The second amendment of the Limited Liability Partnership Act of 2018 has eliminated the Form of incorporation and subscriber’s statement (Form 2) and combined the three processes of name reservation, allotment of the Designated Partner Identification Number (DPIN/DIN) and the incorporation of the LLP.
  • Attachments for FiLLiP: Just like every other application form, FiLLiP also has a prescribed a set of documents to be produced along with, such as the subscribers sheet and consent form, details of LLP or the company in which the designated partner is a member of, PAN cards and Aadhar cards of designated partners/directors, proof of registered office like a sale/rent deed, any utility bill (electricity, gas, etc.) that is not older than two months and a NOC of the owner allowing the usage of the registered office as a company.
  • Uses of FiLLiP: The FiLLiP could also be used as an application for a reservation along with being used to apply for DPIN.
  • Other eForms: Apart from the introduction of the FiLLiP and the RUN-LLP, Form 5, Form 17 and Form 18 still remain though with minor modifications. These Forms are again sent to the CRC for being processed.
  • Central Registration Centre (CRC): For making the evaluation and consolidation of documents process, the web-service/ eForms direct all the RUN-LLP, FiLLiP, Form 17, Form 18 and Form 5 documents to a Centralised place by the Registrar of Central Registration Centre (CRC) on behalf of the jurisdictional registrar. This a great alternative that reduces the time taken for processing the documents and catalyses the growth of Indian businesses.
  • Conversion of a company into LLP: Any company can be converted into an LLP if certain conditions are being followed. Every member of the company needs to agree with the conversion into an LLP and by doing so, all members become the partners of the LLP. Apart from members, the creditors also become partners once converted. The latest copy of the Income tax returns must be produced along with the ROC. It must also be made sure that there are no prosecutions against the company under the Companies Act.
  • LLP agreement: Once the name of the LLP is approved, the LLP agreement needs to be formed. The agreement needs to contain instructions about the mutual rights and duties of the partner amongst themselves and also between themselves and the LLP. The agreement must be made within 30 days of incorporation of the LLP and must be made on a stamp paper (of the appropriate value prescribed by the respective state).
  • The absence of an LLP agreement: If there is no LLP agreement, then the provisions of the First Schedule of the Limited Liability Partnership Act, 2008 will be invoked.
  • Cost of registration: Though the LLP does not need a minimum capital it must have a government prescribed fee for each process of registering an LLP. For instance, obtaining a DSC costs around Rs. 1500-2000 for partners approx., a DIN for Rs. 1000 for two partners and Rs. 200 for registration, etc.
  • Time involved: With the introduction of online web services for speedy processing, the entire process right from obtaining DSc to filing Form 3 for an LLP agreement takes approximately 15 days if all the documents are appropriately submitted.

It is true that several doubts would arise when you start with the LLP registration process. A professional can also help you in the LLP registration process. The above inputs offered would be sufficient to clarify your doubts and you can enjoy the benefits of LLP registration.

0

No Record Found
SHARE