Limited Liability Partnership Registration, governed by the LLP Act, 2008, combines the benefits of a partnership with that of a limited liability company. LLP was introduced to create a form of business that is easy to maintain & to help owners by providing them with limited liability. It is one of the easiest types of business to incorporate and manage in India. With an easy incorporation procedure & simple compliance formality, LLPs are preferred by Professionals, Micro & Small businesses etc. A Limited Liability Partnership is a hybrid of a company and a partnership firm because LLP is a separate legal entity from its member that has the power to extend all its assets having the liabilities of partners limited.
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4 Steps to Limited Liability Partnership
The first step towards LLP registration is to obtain the DSC for a designated partner of the firm. The designated partner must obtain their DSC from the government recognized agency. Make sure to get a class 3 DSC certificate or class 2 DSC certificate. CA Mantra can help to procure DSC on your behalf so that formation process can take place quickly without time lag.
DPIN also known as Designated Identification Partners Number is mandatory for all the designated partners of the limited liability partnership firm. Form DIR-3 is filed to obtain DPIN. The applicant need to attach a scanned copy of Aadhar card & PAN card along with the form which should be signed by the company’s secretary or by the MD/CFO/CEO of the LLP firm in which he/she is appointed as a director/Partner. In a MODIFIED process now, there is no need to apply for separate DPIN and it can be obtained along with LLP formation form.
The third and crucial step under LLP registration is reserving a name for the limited liability partnership firm. For that, an applicant needs to file LLP-RUN form. The name should be unique & non-offensive. An applicant can provide up to 2 names that would be further analysed by the registrar of companies. In case of rejection/objection of name, one can re-submit for second time their form within 15 days of the rejection/objection.
Once the name has been reserved for the LLP firm registration you can move ahead to the incorporation of your LLP. For this, you need to file FiLLiP also known as Form for incorporation of Limited Liability Partnership. You need to take help of a professional to sign and approve app your documents and help in filing. It is filed with the registrar of the firm of the respective state in which the registered office is situated. Applicant need to pay some amount of incorporation fees as per the Annexure “A”.