The Limited Liability Partnership (LLP) is a perfect business structure for those looking to combine the flexibility and ease of running a modern partnership. LLP as the name suggests provides a hybrid structure of partnership firm and corporate entity which makes is more famous among businesses. It is a best practice for professionals, small business and medium to large companies with an aim at achieving operational flexibility without bearing the full financial burden of purchasing a commercial property. We will guide you step by step on the registration of an LLP in India easily with a complete understanding of each stage involved. We will also propose some of the add on services like Trademark registration, Proprietorship Firm and Patent Registration, GST Registration and your Taxes related compliances such as Filling Income tax return and GST Returns. We also provide other similar add on services.
Step 1: Reservation of Name for Your LLP:
Selecting LLP Name is a very important category. This is the first market place impression of your business name, which needs to be remember-able & compliant with Ministry of Corporate Affairs policies. For name of your LLP, you need to file Form RUN-LLP (Reserve Unique Name). This form will let you suggest two names in order of preference. Before you submit, make sure to verify the name that is proposed by yourself as well in order not get rejected. If the name is available and in accordance with rules, then Ministry of Corporate Affairs reserves that name for your LLP after verification of application.
Step 2: Document Collection:
- ID Proof of Partners(PAN, AADHAAR, Photo, Phone No & Mail Id)
- Residence Proof of Partners: Partners must submit a recent bank statement ie; at most 2-3 months.
- Proof of Registered Office Address: Provide the rent agreement and landlord’s no-objection certificate if rented. Submit a recent utility bill (gas, electricity, or telephone) with the complete address and owner’s name (2 months or older).
Step 3: Apply for DSC (Digital Signature Certificate):
The next important thing in LLP registration is to get the DSC (Digital Signature Certificate ) of crucial designated partners. As all the documents for filing LLP registration is submitted online with Ministry of Corporate Affairs (MCA) therefore having a Digital Signature Certificate becomes mandatory to sign these document in secured manner. Please note that only one of the strategic partner needs to be apply for DSC (i.e., not all DPs have obligation about it).
Step 4: Filling and Submission of Application Form:
For the LLP, a DPIN (Designated Partner Identification Number) is allotted at time of allotment DIN, so no need of separate application for DPIN. LLP registration can take place only after the proper preparation and filing of application form. Fill in particulars of the LLP name, registered office address and detail of designated partners
Registered Office Address:
The address of the LLP for any communication from Ministry of Corporate Affairs.
Consent of Partners:
From each partner standing to be appointed as designated partners for the LLP.
Subscribe Sheet:
A document executed by all partners evidencing their subscribe to the LLP. You also need to furnish necessary documents like proof of registered office (electricity bill or rent agreement), identity proofs and address proofs for the partners along with Form FiLLiP. On receipt of these documents, MCA will process to verify that all the required documentation has been filed and if everything is found correct, you get your Certificate of Incorporation. After Precise of Registration, now it has to move forward for certificate and incorporation as well PAN/ TAN application.
Step 5: Certification and Incorporation
The Certificate of Incorporation is the consent that offers legal consideration to your LLP. This also involves the verification number of LLP along with incorporation date. This certificate is essential, as it enables you to operate a Bank account in the name of LLP and enter into business transactions legally. Once you have received the Certificate of Incorporation, then PAN and TAN for your LLP is also allocated. Without these you cannot meet your tax responsibilities, such as Income Tax Returns and GST Returns.
STEP 6: Drafting and Filing of LLP Agreement:
Prepare the LLP Agreement, which defines the rights, duties, and obligations of the partners and the LLP. This agreement must be notarized and filed with the Ministry of Corporate Affairs (MCA) within 30 days of incorporation .
Step 7: Further Registrations and Compliance
An LLP registration is a very important process, as your business also needs different types of services that should need to be registered for smooth operation and comprehensive legal protection. Like if you want to your business into the next level then why not go for this Private Limited Company registration. This type of structure is common for large businesses as it’s much more practical to raise funds, also the shareholders are entitled to limited liability. Common LLP Registration Errors to Keep Away From Preparing an LLP registration may be simple but there are a few mistakes that the entrepreneurs generally make: Inadequate Name Research: The LLP must have a unique name that is not taken by any other entity in India, naming it something already used means instant rejection from the MCA. Incorrect Documentation: Missing any document or provide wrong information leads registration lengthy process Not Reading Joining a LLP Agreement Correct Showdown: Disregarding the information of every FranWatch agreement might result in issues implicated with leaders closing topper afterwards. Non Compliance of Post-incorporation Requirement: Most new LLPs fail to file the LLP Agreement with MCA within 30 days attracts penalty Eliminating these mistakes saves time and makes registration easier
