What is LLP Registration?
In 2008, Limited Liability Partnership (LLP) i.e. Limited Liability Partnership India Company was launched as a new structure incorporating features of partnership firm structure and special features of limited liability firm structure. The growing number of LLP firms has given the LLP system huge support among budding entrepreneurs. In this article we will cover the complete details under all the following LLP related topics.
- Features of LLB Registration
- Procedure for registration as LLP
- Documents Required for LLP Registration
- Cost to register LLP
- Duration taken to register LLP
Features of LLB Registration
- The liability of the partners in the firm is limited to the amount of their investment.
- There is no minimum investment amount to register your company under this scheme.
- Unlimited maximum number of partners can be added
- The initial cost of setting up an LLP business is low.
A minimum of two persons and a maximum of as many persons can be admitted as partners to identify their firm as an LLP. It is very important that at least two persons are Desiconnected partners and at least one should be an Indian. The LLP Agreement governs the obligations and rights of the Desiganate Partner. LLP Act 2008 The desicaneted partners shall be the persons who can undertake all the responsibilities mentioned therein. Register under the Limited Liability Partnership Act 2008 if you want to start a limited liability partnership company.
Procedure for registration as LLP
- 1) Obtaining D.Sc
- 2) Obtaining TIN
- 3) Selection of company name
- 4) Obtaining LLP Institutional Recognition
- 5) Prepare LLP Partners Agreement
1) Obtaining D.Sc
The first step in the LLP registration process is to purchase a Digital Signature Certificate called a DSC for persons who are to become a DesiConnected Partner of your LLP company. This DSC application means that you have to apply through online applications in various places where you have to register to start LLP. Digital Signature Certificate – TSC carries all the authority equivalent to your written signatures so should be handled with care wherever it is used. All DesiConnected partners apply for DSC from organizations authorized to issue digital signature certificates.
- National Information Center (NIC)
- ITRBT Certifying Authority
- SafeScript CA Services, Cify Communications Ltd
- (n) Code Solutions CA
- E-Mutra
- CTAC
- NSDL
- Capricorn
- Pandazine
- iDesign
Different companies mentioned above are appointed to issue Digital Signature Certificates and each company charges different amount of fees. So it is better to contact the company from which you are going to get DSC and ask about the fee details. Your DSC will be ready within three to seven days of submitting the Digital Signature Certificate application form. It is necessary to obtain Class 2 and Class 3 Digital Signature Certificates to apply for your Institutional Authorization Certificate at MCA site. Since the DSC certificate is valid for only one or two years, renewing the DSC before the expiry date will help you to avoid various complications.
2) Obtaining TIN
A Director Identification Number (TIN) is required for all those who have been designated as a Desikanedite Partner or who wish to become a Desikanetide Partner. Before filing application form TIR-3 for allotment of TIN you need to have some documents. If you want to get a DIN then you should keep all the documents ready.
- Gender and date of birth and national citizenship details
- Permanent Account Number (PAN)
- Voter ID Card
- If you are a foreigner, you must have a passport
- Driving license
- Aadhaar card
- A personal email address and phone number
- Permanent address
- D.S.C
The application forms you apply for must have the signatures of the company secretary and CEO of the beauty company. The SRN generated on successful submission of DIR Application Form No. 3 can be used for MCA site operations.
3) Selection of company name
If your company is to be registered as an LLP you must choose a name that is not used by anyone else who may be running your business. You can explore the existing company names on the MCA website to get an idea of what kind of new names you can choose for your company. After thorough research and selection of a unique name that is not used by anyone, LLP – Limited Liability Partnership called RUN – Reserve Unique Name should be registered in a Central Registration Center other than STP.
If the name you choose is similar to the names of any other company, your application for registration will be completely rejected. If your name registration application is rejected then you can apply again only after next 15 days. It is not necessary for you to select only one name so you can apply by suggesting another alternate name as well.
4) Obtaining LLP Institutional Recognition
The form used to obtain LLP company recognition should be submitted to the office of the Registrar of Corporations where your business is located. For this you have to pay the fee for submission of Annexure Form A. Through this connection form, the person taking over as the disconnected partner of your company also has the facility to get a DPIN if he/she does not have a DIN.
5) Prepare LLP Partners Agreement
The LLP partners agreement should define the information about the distribution of powers between the partners and the mutual rights and obligations of the partners. You have to file your LLP agreement documents through Form III on the MCA website. You must submit this Form 3 within 30 days of preparing the LLP Agreement. Your LLP agreement should only be on a stamp paper approved by the state government.
Documents Required for LLP Registration
- Documents of partners
A PAN card is required as the primary identity card for all those joining as partners in an LLP firm.
Permanent Address Identity Card with no typographical errors like name and date of birth on PAN card is a must.
Any of electricity bill, telephone bill, gas bill etc. should be submitted to confirm the location of the partners. The validity of such receipt forms should be within the last three months.
Passport photographs taken on white background are required.
Any person residing in a foreign country who wants to participate in an LLP institute in India should submit his/her passport details and address certificates of our existing country.
2) LLP company documents
Domicile certificate for the office where your LLP company is set up is absolutely required. If the place where your company is to be set up is a rented place then you should get a lease agreement and a no objection agreement from the landlords.
As we said earlier, digital signature certificate and director identification number are mandatory as most of the document filing is done online.
Cost to register LLP
Below is the approximate amount that can be spent at each step for LLP registration.
- 1500 to get D.Sc
- 1000 to get TIN
- 200 for company name registration
- Incorporation registration requires Rs 500 if your company’s investment is between Rs 1 lakh and Rs 2000 if it is between Rs 1 lakh and Rs 5 lakh.
- The stamp paper on which the partners can enter into an agreement is subject to the control of the State Government.
- 50 for Form-3 to join as a partner in one lakh rupees
Duration taken to register LLP
All kinds of registration can be completed within 15 days if you have all the documents right.
