The Limited Liability Partnership Act, 2008 paved the way for introduction of Limited liability partnership in the Indian corporate world. Limited liability partnership (LLP) is a partnership where all the partners have limited liabilities. For the partners the liability limited to the extend of his own misconduct or negligence. He will not liable to the misconduct or negligence of another partner done without his knowledge or concurrence. LLP combined the flexibility of the partnership business, compliance requirement of an incorporated body corporate, transparency of documentation and availability of information in public domain. As in the case of directors in companies, Designated partners hold fiduciary duty towards Limited liability partnership.
Registration of a Limited Liability Partnership
1. Formation of LLP
We can have a Limited Liability Partnership in India
2. Formalities in incorporation
Incorporation is doing at the office of Registrar of LLP, situated in Delhi
Incorporation is comprised of three steps
A. Obtain Digital signature
Since all the filing to the Registrar of companies is through on line, partners should obtain a Digital signature which costs Rs.2000/-
For Digital signature and LLP registration applicants should submit the following document
The application for DSC is online and process is involved mobile Email and video verification. On successful verification of application the applicant will get DSC in a secure device called E Token
B. Name Application and Approval
For obtaining the desired name for the LLP to register, we have to apply to the ROC in specified form and the processing may take 1 to 3 days and cost involved is Rs. 200/- subject to the availability of name.
C. Submission of Incorporation documents
Next step involved is preparation and submission of incorporation documents like Consent to become Partner/Designated Partner, Subscription sheet and documents proofing Identity and address of the Partners and the Registered office of the LLP.
Certificate of Registration of LLP with LIN (LLP Identification Number) will be issued in 2 to 10 days after proper submission of the incorporation documents with the MCA website using Form LLPIN .
D. Execution and Submission of LLP Agreement
After the LIN is allotted The partners has to execute the LLP Agreement and required stamp duty has to pay. Then it should be o submitted to the ROC office by filing online using Form No.3
3. Obtain Pan Card, TAN Number and other Registration
For obtaining the Pan Card, TAN Number application has to submit to Income tax Department. Once the Pan number is allotted, LLP can pursue registration for GST, Professional Tax and other Registrations
Thus for incorporation of a LLP, it may take 3 to 10 days from the date of submission of proper documents for registration .
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