A limited liability partnership (LLP Registration) is a kind of company structure that combines the freedom of partners with the advantages of restricted liability at a relatively low cost of compliance.
LLP Registration provide the advantage of limited liability to its shareholders while also requiring little management. The owner of a private limited company is only liable to the firm’s creditors to a limited extent. In the event of non-payment of debt, banks/creditors have the right to sell only the business’s assets, not the personal assets of the owners. A limited liability partnership (LLP Registration) is a cross between a corporation and a partnership business.
This article discusses the steps involved in forming a limited liability partnership (LLP).
What are the characteristics of a Limited Liability Partnership (LLP) registration?
The following are the characteristics of an LLP registration:
- Legal Entity that is distinct from the rest of the organization
- A minimum of two people is required.
- There is no need for a minimum capital contribution.
- The LLP Agreement governs the relationship.
- Low-priced
- Compliance is decreasing.
- Limited Liability Corporation (LLP Registration)
What papers are required for the formation of a limited liability partnership?
The papers that Partners need are as follows:
- Identification Documentation (ID Documentation)
- Validation of the mailing address
- Proof in the Residence
- Photograph
- In the case of Non-Resident Indians (NRIs), a passport is required.
The papers needed for a Limited Liability Partnership (LLP).
- Proof of the Registered Office Address
- Digital Signature Certificate (also known as a digital signature certificate)
What exactly is the purpose of LLP registration?
In small and medium-sized businesses, the idea of a Limited Liability Partnership may be very beneficial. A Limited Liability Partnership is liable for its losses and debt incurred in making business, rather than the losses and debt incurred by its partners. The Limited Liability Partnership is thus regard to be a profit-making enterprise.
The running business may be a member of an LLP Registration, which must have a minimum of two members to be effective. It is recommend that all members sign a “Deed of Partnership” outlining their rights and duties.
What is the procedure for forming a limited liability partnership (LLP)?
Step-1: The identifying number of the designated partners (DPIN)
The DPIN is necessary for all prospective partners in a LLP company, regardless of nationality. DPINs can be obtain by submitting form DIR-3. A scanned copy of the Aadhar card and a copy of the PAN card must be provided with the form, which must be signed by the secretary or director of the limited liability partnership.
Step 2: Approval of the Name
After completing Steps 1 and 2, you will need to decide what name you want to give to your limited liability partnership company. The applicant must complete an LLP-RUN form. The name must be one-of-a-kind and not insulting in any way. The registrar of the business conducts a further investigation on the two names provided by the applicant. In the event of a refusal, you will have 15 days to resubmit your application.
Step 3: Submitting the Articles of Incorporation
Once you have decided on a name for your company, you may proceed to the next step, which is incorporation. It is necessary to submit the FiLLiP or the form for the formation of a limited liability partnership. Incorporating a new business begins with the registrar of the firm and paying the require incorporation fee.
Authorities examine all documents thoroughly, and afterward, the company is given its certificate of incorporation.
What are the post-registration requirements for a limited liability partnership?
Following the incorporation of the LLP Registration, it is necessary to comply with all applicable regulations. The post-incorporation requirements are as follows:
- LLP agreement: This critical document outlines the rights and responsibilities of all members of a limited liability partnership. It is done to prevent future problems and disagreements between couples. Within 30 days of the LLP Registration formation, it is necessary to submit an LLP agreement. Those responsible for signing it must print it on stamp paper and sign it jointly.
- Apply for a PAN and a TAN: A company cannot establish a bank account unless it has a PAN and a TAN.
- Opening a Bank Account: Once you have obtained your PAN, you should create a bank account in the registered company’s name.
The following are some of the things to consider while choosing the name for your organization.
The following are the elements that should be taken into consideration while selecting a name:
Meaningful
The name of the corporation should be linked to the nature of your company. It should be consistent with the company’s branding.
Short and to the point
The company’s name should be simple and easy to remember. – People can easily pronounce the business name, and they can recall the firm’s name in the first occurrence.
Unique
To avoid confusion with an existing company, business, or trademark, the firm’s name should be unique.
Blacklist
Abstracts, adjectives, and general terms are among the words that are Unacceptable.
There are no existing trademarks.
It is not Allowable to use any certified logos or any similar names to those found on the IP India website.
Suffix
As in a limited liability partnership, the LLP Corporation’s name must include the suffix “LLP”.
Name with a Descriptive Meaning
The title of your company should provide a brief description of the kind of business you are in.
Whether it is illegal or offensive
Make sure that you are not breaking the law. The name should not be derogatory or in opposition to any religious traditions or beliefs, and it should not damage anybody.
Also Read - Licensed Money Lenders vs. Banks
What is the procedure for changing the name of a limited liability partnership?
Changes in the name of a limited liability partnership (LLP Registration) may be need to completing the necessary forms: –
- Form 1 must be completed for the name to be approved (Application for reservation or change of name)
- Following approval of the name, the applicant must submit Form 5 (Notice of change of name) with the registrar to notify them of the name change of the LLP Registration.
What is the procedure for changing the registered office of a limited liability partnership (LLP)?
If a limited liability partnership (LLP Registration) wishes to relocate its registered office, it must submit Form 15 (Notice of change of registered office location) with the registrar.
To modify the LLP Agreement, what is the procedure to follow?
LLP Registration may amend the LLP Registration Agreement by sending Form 3 to the appropriate party (Information concerning Limited Liability Partnership Agreement and changes, if any, made therein). However, if the modification in the LLP agreement is due to a change in the number of partners or A designate partners, Form 4 must be submit with Form 3 at the same time.
Approximately how much time is require for the Registration Process?
Registration of a limited liability partnership (LLP) takes about 15 days, depending on the availability of all required papers.
Conclusion
It is anticipate that the introduction of limited liability partnerships would offer a new alternative for alliances that are concern about their exposure to liabilities. Because of the expansion of the Indian industry, limited liability partnerships (LLP Registration) will contribute to the development of the sector and the evolution of a significant number of existing businesses, both public and private. Limited Liability Partnership (LLP) registration in India has been more convenient with the passage of the Limited Liability Partnership Act, 2008.
