Limited Liability Partnership (LLP Registration ) is an advanced form to traditional form of normal partnership having the liability of partners of LLP limited to the extent to capital contributed by partners in LLP. The major benefit to incorporate an LLP is to have Limited Liability in its operations.
Often seen in a bad time of business the personal assets of the partners come into stake and partners have to repay all debts even by selling personal assets. The major way to get it out is to get the benefit of Limited Liability where at the time of winding up of LLP all the assets of LLP is sold and all the liabilities of LLP are paid and afterward if nothing left or full liabilities are not paid as par law than partners of LLP need not to pay the balance from their personal assets. Another benefit of LLP is it also body corporate and is a separate Legal Entity, Partners come in and goes but LLP will always remain in existence.
Step by Step Procedure on LLP Registration in India
Obtaining Digital Signature of all the Designated Partners of LLP
Digital signature are issued by Certifying Authority in India after due verification of applicant, Digital Signatures are used to electronically sign the documents, it is as valid as normal signature.
Obtain DIN of Designated Partners for LLP Registration
Designated Partners of LLP must have Director Identification Number to become Designated Partners , In LLP DIN is also Named is Designated Partner Identification Number (DPIN) , DIN is obtained by filing Form DIR-3 with MCA. (DIN is valid for lifetime, you don’t need to apply for DIN if you have already obtained DIN.
Filing Name Approval Application for LLP Registration
Once DIN is Obtained Application for Approval of Name of LLP is Obtained in LLP Form 1 to ROC. Name of the proposed LLP should be unique , means if there is already a company , LLP or trademark is registered or applied , the name is simply not available.
Drafting of Incorporation Documents for LLP Registration
Once the Name of LLP is approved Subscriber sheet, Consent of Partners form is drafted and than is Signed by all the Partners of LLP. Subscribers sheet should also be attested by Professional like Company Secretary, CA or CMA.
Filing of Incorporation Document to ROC for LLP Registration
Along with Signed Subscriber sheet, Consent and Registered Office proof documents (Electricity Bill ,Rent Agreement/ Sale Deed and NOC from Owner ) LLP form 2 is filed with ROC.
Incorporation of LLP
Once Form 2 gets approved , LLP gets incorporated a Certificate of Incorporation is issued and LLP Identification Number is Allotted to LLP .
Drafting and Filing of LLP Agreement to ROC
This is Final Stage to Incorporation procedure of LLP. LLP Agreement is prepared and printed on stamp duty of applicable value and signed by all the partners of LLP alog with signature of 2 witness. Scanned LLP agreement is now filed with ROC in LLP form 3 within 30 Days of Incorporation of LLP.