Registration Process of LLP
A popular business form in India, limited liability partnerships combine the advantages of a private limited company and a partnership. It presents operational simplicity, limited liability, and flexibility. Here’s a detailed guide to walk you through the steps should you intend to create an LLP in India. Contact the Registration Guru and get your registration certificate to start your limited liability partnership firm.
1 Obtain a Digital Signature Certificate (DSC)
The appointed partners have to have a Digital Signature Certificate (DSC) since the LLP registration process is online. Filing electronic documents with the Ministry of Corporate Affairs (MCA) requires this. Certified organizations including e-Mudhra, Sify, or NSDL provide the DSC.
Documents Required for DSC
· PAN Card of the required
· Aadhar card or address proof
· Passport-size photograph
· E-mail ID and mobile number
2 Apply for a Director Identification Number (DIN)
The LLPs designated partners have to seek a Director Identification Number (DIN). If they do not already have one, they can apply for it while filing the LLP incorporation form (FiLLiP).
3 Reserve a Unique LLP Name
Selecting a unique name is critical for LLP registration. The name should follow the naming norms of MCA and should not be confused with any existing company or LLP.
Steps to Reserve a Name:
· The MCA portal offers the RUN-LLP (Reserve Unique Name-LLP) service.
· Propose one or two unique names.
· If the name is accessible, the MCA will authorize it. If rejected, re-submission with other names is necessary.
4 File the LLP Incorporation Form (FiLLiP)
Once the name is approved, file the FiLLiP on the MCA portal. This form includes details such as:
· Proposed LLP Name
· Business activity
· Registered office address
· Details of designated partners
Documents Required for FiLLiP:
· Address proof of registered office
· Consent of designated partners
· Identity and address proofs of partners
· Subscriber’s sheet (signed by partners)
5 Obtain the Certificate of Incorporation
After submitting the FiLLiP form, the Registrar of Companies (ROC) reviews the application. Once accepted, the LLP will get a Certificate of Incorporation, which includes the LLP Identification Number (LLPIN).
6 Draft and File the LLP Agreement
The LLP agreement defines the rights, responsibilities, and profit-sharing ratio among partners. LLP Contract must be filed within 30 days of incorporation using Form 3.
Key Clauses in the LLP Agreement:
· Name and registered office of LLP
· Partner’s rights and duties
· Capital Contribution
· Profit-sharing ratio
· Dispute resolution mechanism
7 Apply for PAN, TAN & Open a Bank Account
After incorporation apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) from the Income Tax Department.
Additional Steps
· Open a bank account in the name of LLP
· Register under GST (if applicable)
· Obtain any necessary business license