How to incorporate limited liability partnership

STEP WISE PROCEDURE.: for  Incorporate Limited Liability Partnership

In 2008, Ministry of Corporate Affairs brought the concept of Limited Liability Partnership.
As per the LLP Act 2008 an “LLP is defined as that business entity where having two Designated Partners is minimum requirement and such partners had their liability limited to their contribution towards the LLP
It has following below mentioned features.

1. Separate Legal entity

2. Have perpetual succession

3. Formation cost is nominal.

4. Unlimited numbers of partner.

5. Less compliance as compare to the Company.

STEP INVOLVED:

1. Obtain DPIN of all the designated partner.
2. Apply for Digital Signature Certificate of partner/designated partner of LLP/Proposed LLP.
3. File LLP 1 for Reservation of name.

Firstly download LLP 1 and start filling the details like details of applicant whether applicant is a individual or nominee of a body corporate. Enter the Designated partner identification number (DPIN) and click on prefill button. Enter the details of two proposed designated partners (One of them should be a resident in India) and mention other details too. In PART C Select name of the proposed LLP (upto 6 choices can be indicated). State the significance of the key or coined word in the proposed name in brief. Affix the s digital signature of Designated partner and file the form and pay requisite fee to MCA.

Once the name is reserved by registrar. Come on to next step:

4. Then start proceed to file LLP Form No-2 which is for “INCORPORATION OF DOCUMENT AND STATEMENT”
In LLP form -2 start fill the details like Address of registered office of the LLP, Business activities to be carried out by the LLP. Total number of designated partner, total number of partners. Mention their respective details. Total Monetary contribution and Attached Proof of address of registered office of LLP and subscribers sheet including consent. After filing the details Statement in the eform is to be digitally signed by a person named in the incorporation document as a designated partner having permanent DPIN and also digitally signed by professional.

On Submission of the form , maximum within 14 days of filing of E-form 2, Registrar will issue certificate of incorporation in Form 16.

5. DRAFT LLP AGREEMENT AND FILE FORM 3 (LLP AGREEMENT FORM).
Once Form-3 got approval, all the formalities in respect of incorporation of Limited Liability partnership is been completed.

 

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