A Limited Liability Partnership (LLP) is a type of business that offers the joined highlights of ‘association’ and ‘friends’ business structures. This business structure was presented in India in April 2009 with the establishment of the Limited Liability Partnership Act, 2008.
An LLP consolidates the benefits of both ‘Organization’ and ‘Association’ in a solitary business element.
In an LLP, an accomplice isn’t dependable or at risk for another accomplice’s unfortunate behavior or carelessness. All things being equal, all accomplices have restricted risk, restricted to their own demonstrations of bonus or exclusion, like investors’ liabilities in a restricted organization.
In any case, dissimilar to organization investors, LLP accomplices reserve the privilege to deal with the business straightforwardly.
An LLP likewise restricts the individual responsibility of an accomplice for the mistakes, oversights, ineptitude, or carelessness of the LLP’s workers or different specialists. The administration of the everyday business is illustrated in the LLP Agreement, giving accomplices the opportunity to control issues of the business.
LLP enrollment is regulated by the Ministry of Corporate Affairs (MCA) through the Office of the Registrar of Companies. The joining system is completely electronic, like the organization enrollment process, for example, applications and records are documented electronically and the Registrar issues a carefully marked Certificate of Incorporation (COI).
Prerequisites for LLP Registration
a) Partners
To enroll in a Limited Liability Partnership (LLP), there should be at least two accomplices. An individual or a body corporate can turn into an accomplice of an LLP.
A singular accomplice, who is an Indian National, ought to have a Permanent Account Number (PAN) designated by the Income Tax Department.
b) Designated Partners
An LLP ought to have a base of two ‘Assigned Partners’ who are people. Somewhere around one of them should be an inhabitant in India. ie, remained in India at least 182 in the past scheduled year.
Proposed Directors should have a Director Identification Number (DIN) given by the Ministry of Corporate Affairs. No one but people can be assigned as accomplices in an LLP. Where a body corporate is one of the LLP accomplices, it will select a person as its candidate Designated Partner.
c) LLP Name
The name of a Limited Liability Partnership (LLP) will end with the words “Restricted Liability Partnership of the abbreviation ‘LLP’. LLP Name has three sections, ie., ‘The Name’, ‘Action’, and the words “Restricted Liability Partnership’ or the abbreviation ‘LLP’. Proposed LLP name is expected to be supported by the Registrar of Companies
d) Registered Office Address
LLP ought to have an enlisted office address as its legal interchanges. A location confirmation with No-Objection Letter for utilization of address as Registered Office of LLP from the location proprietor is likewise required.
e) LLP Objects
Objects of the LLP allude to proposed business exercises. LLP can have any lawful business exercises that are lawful. It is prudent to distinguish the principal objects of the LLP in a specific line of business.
The name of the LLP should be in accordance with the principle objects. In the event that the name of the LLP isn’t depicting a specific item, then, at that point, the LLP can have multi-layered articles.
f) Digital Signature Certificate (DSC)
internet Filing of records to be confirmed by utilizing a Digital Signature Certificate of the Director acquired from the Certifying Authority in India.
g) Professional Certification
Administrations of a Company Secretary, Chartered Account, Cost Accountant is expected to make fundamental Certifications and assertions for the fuse of a Limited Liability Partnership (LLP).
Records Required for LLP Registration
1. Designated Partners (Who doesn’t have a DIN)
a. Personality Proof:
i.Indian Nationals – Copy of PAN Card (Self ensured)
ii. Non-Indian Nationals – Copy of Passport (Self Certified and authenticated)
b . Address Proof:
i.Permanent Address Proof: Copy of Passport or Driving License or Aadhaar Card or) or Voter Identity Card or Telephone Bill or Electricity Bill or Bank Statement (Not more established than 2 months)
ii. Present Address Proof: Telephone Bill or Electricity Bill or Bank Statement (Not more established than 2 months)
c. Identification Size Photos – 3 Nos.
2. Accomplices (If the Partner is anything but a Designated accomplice)
a. Personality Proof :
i.Indian Nationals – Copy of PAN Card (Self guaranteed)
ii. Non-Indian Nationals – Copy of Passport (Self Certified and authenticated)
b. Address Proof:
i.Permanent Address Proof: Copy of Passport or Driving License or Aadhaar Card or) or Voter Identity Card or Telephone Bill or Electricity Bill or Bank Statement (Not more established than 2 months)
Notes:
a.All the Copies of records should be self bore witness to by the candidate
b.In the instance of non-Indian Nationals, the reports are expected to be legally approved from the nation of origin.
c.The Telephone Bill/Mobile Bill/Electricity Bill/Bank Account Statement should be for the sake of the candidate and ought not to be more seasoned than 2 months.
d.In the instance of reports that are in dialects other than English, it ought to be meant English with the assistance of an expert interpreter, conveying his subtleties (name, mark, address, and seal) If the proposed chief has a legitimate Director Identification Number and assuming the person is a proposed investor, the location in MCA records and should coordinate with present location verification.
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3. Registered Office Address
Duplicate of Passport or Driving License or Aadhaar Card or Voter Identity Card or Telephone Bill or Electricity Bill or Bank Statement with the complete location of the proposed enlisted office of LLP with No-Objection Letter from the location proprietor for utilization of address as Registered Office of LLP is additionally required.
LLP Registration Process
LLP Registration Process can be isolated into 3 phases and the cycles included are as per the following:
Stage-I: Pre-Requisites
Distinguish Partners
Distinguish Designated Partners
Decide the capital commitment benefit-sharing proportion by accomplices
Choose Objects of the LLP
Choose proposed Names of the LLP
Conclude the State where the LLP is to be enlisted.
Stage-II: Documentation and Registration
Get Digital Signature Certificate (DSC) for Designated Partners
Get Director Identification Number (DIN) for Directors.
Apply for LLP Name
Letters of Consent from each Partner and Designated Partner
Execute LLP Registration Documents (after name endorsement)
Accommodation of LLP Registration Documents to the Registrar of Companies (ROC)
Enlistment and Certificate of Incorporation
Stage-III: LLP Agreement
Drafting and Execution of LLP Agreement by accomplices
Documenting of LLP Agreement with Registrar within 30 days of enrolling the LLP.