A Complete Guide to LLP Registration Process
LLP is
a kind of business form which combines the flexibility of partners and the
benefits of limited liability at a very nominal cost of compliance.
LLP offers the benefit of limited liability to its owners and minimal maintenance. The owner of a private limited company has limited liability to its creditors. In the case of nonpayment of debt, banks/creditors can only sell the company’s assets and not the personal assets of owners. LLP is a hybrid of a company, as well as a partnership firm.
This article includes the process related to LLP Registration.
What are the features of LLP Registration?
The
features of LLP registration are-
- Separate Legal Entity
- Minimum 2 Persons Required
- No Minimum Capital Contribution
- Governed By LLP Agreement
- Low Cost
- Less Compliance
- Limited Liability
The documents required by Partners are-
- ID Proof
- Address Proof
- Residential Proof
- Photograph
- Passport In Case Of NRIs
- Registered Office Address Proof
- Digital Signature Certificate
The operating business can be a member of LLP and shall have at least two members. The rights and responsibilities of all members should be laid down in “Deed of Partnership.”
What is the process of LLP registration?
Step-1
Designated Partners identification
number (DPIN)
DPIN is
mandatory for all the proposed partners of the limited liability partnership
firm. Form DIR-3 is filed to obtain DPIN. A scanned copy of Aadhar card, as
well as PAN card along with the form, has to be submitted, which has to be
signed by the company’s secretary or director of LLP.
Step-2
Name Approval
Selecting a name
for the limited liability partnership firm is the third step under the LLP
registration procedure. The applicant has to form an LLP-RUN form. Te name has
to be unique and non-offensive. An applicant provides two names, which are
further analyzed by the registrar of the company. In case of rejection, you can
again submit your form after 15 days.
Filing of Incorporation Form
Once the name has
been selected, you can further move ahead to the incorporation of your firm.
Form for incorporation of limited liability partnership, i.e., FiLLiP, is to be
filed. It is registered with the registrar of the firm, and a prescribed
incorporation fee is to be paid.
Documents are duly
checked by the authorities, and after that, the incorporation certificate is
issued.
What are the
factors to be considered while selecting the name for the company?
The factors that are considered while choosing any
name are as follows-
Meaningful
The name of the corporation should be related to
your business. It should resemble the company’s branding.
Short & Simple
The name of the company must be quick and
straightforward. Easy pronounced by people, and they can remember the company
name in the first instance.
Unique
Name of the company should not be identical to an existing company, business or trademark
Blacklist
Abstracts, adjectives, and generic words are
blacklisted.
No existing Trademarks
No certified logo or any identical name on the IP
India website should be used.
Suffix
The name of the LLP company must finish with the suffix “LLP” as in limited liability partnership.
Descriptive Name
The title should describe
a little about the type of business you are in.
Illegal or offensive
Make sure you don’t go against the law. The name should not be abusive or against any customs or beliefs of any religion and doesn’t harm anyone
What is the process for LLP Name change?
Any LLP registered partnership firm can change its
name by submitting the following forms: -
- Form 1 is required to be filled for name approval (Application for reservation or change of name)
- After the name gets approved, the applicant is required to file Form 5 (Notice for change of name) to let the registrar about the name change of LLP
What
is the process to change the registered office of the registered LLP?
In case LLP wants to change its registered office,
Form 15 (Notice for change of place of registered office) has to be filed with
the registrar
What is the process to change the LLP Agreement?
LLP can change the LLP Agreement by submitting Form 3 (Information concerning Limited Liability Partnership Agreement and changes, if any, made therein). However, in case the change in LLP agreement is due to a change in partners/ designated partner, Form 4 has to be filed along with Form 3.
Types of Forms Applicable for LLP
|
Name |
Purpose |
|
RUN-LLP |
Form for
reservation of name of the firm |
|
FiLLiP |
Form for LLP incorporation |
|
Form 5 |
Notice for the
name change |
|
Form 17 |
Application for conversion of a firm
into LLP |
|
Form 18 |
Application for
conversion of a private or public company into LLP |
What is the cost
involved in LLP Registration Process?
The government fees for filing forms are as
follows-
|
Step |
Cost |
|
Step 1 – DSC |
Around Rs. 1500-2000 for 2
partners(varies depending on the agency) |
|
Step 2 – DIN |
Rs. 1000 for 2 partners |
|
Step 3 – Name Reservation |
Rs. 200 |
|
Step 4 – Incorporation |
It depends upon capital involvement. Contribution upto INR 1 lakhs – INR 500, Contribution between INR 1 and 5 lakhs – INR 2000 |
|
Step 5 – LLP Agreement |
It depends upon capital involvement. Contribution up to INR 1 lakhs – INR
50 for filing of Form 3 & stamp duty based on the state where LLP is
formed |
How much time
involved in the Registration Process?
LLP Registration takes approximately 15 days,
according to the availability of all the documents.
Conclusion
The introduction of a Limited liability partnership
will provide a new option for partnerships that are anxious about their exposed
liability. Because of the growth of the Indian industry, LLPs will contribute
to the growth of the sector and a large number of existing companies, public as
well as private. LLP registration in India has become more comfortable after
coming of the Limited Liability Partnership Act, 2008.
In case of any query, contact Corpbiz.
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