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who-can-incorporate-a-llp

What is LLP

As per Section 3 of the Limited Liability Partnership Act (LLP Act), 2008, an LLP is a body corporate formed and incorporated under the Act and a legal entity separate from its partners. It will have perpetual succession.

The rights and duties of the partners are covered in the LLP agreement between the partners or between the partners and the LLP.

Since LLP having the benefits of both ‘a body corporate structure’ as well as ‘a partnership firm structure’ LLP is called a combination of a company and a partnership.

Who can incorporate an LLP?

Any Individual person can incorporate an LLP, but another legal entity may also become a partner in the proposed LLP through its authorized person. Foreign Nationals/NRIs are also allowed to become a partner and designated partners in LLP but subject to the requirement of one Indian resident designated partner.

Limit for the number of Partners in an LLP

Limited Liability Partnership shall have at least two individuals designated partners every time, and at least one designated partner should be resident in India, and there is no maximum limit for the number of maximum partners or designated partners in the LLP.

Stepwise procedure to incorporate an LLP is as under:

1.         Digital Signature Certificate

LLP formation fillip form can upload only after affixed the Digital Signature Certificate of anyone authorized Designated partner of the proposed LLP, So whose signatures are to be affixed on the e-forms has to be obtained from any authorized certifying agency.

2.         Reservation of name

RUN form (Reservation of Unique Name) Need to file with the MCA to get name approval letter for proposed LLP (proposed LLP name availability facility is also available on the MCA portal)

3.         Submission of Incorporation form for LLP formation or to get the certificate of Incorporation of LLP

Fillip Form (LLP formation form) need to submit with the MCA along with following documents:

  1. Copy of PAN Card of all the partners and designated partners.
  2.  Copy of the Address Proof of Partners: Voter’s ID or Passport or Driver’s license or Aadhar Card (Passport is mandatory in case of Foreign Nationals/NRIs)
  3. Copy of the Residence Proof of Partners: telephone bill, mobile bill, latest bank statement, electricity bill (Should not be older more than two months).
  4. Photograph – Partners should also provide their passport size photograph
  5. Copy of the Latest address proof for registered address of proposed LLP (Electricity Bill or mobile bill or GAS Bill)
  6. Copy of Non-Objection Certificate (NOC) from the owner of the premises of the registered address.
  7. Copy of FORM no. 9 under Rule 7 and 10(8) (Consent to act as Partner or Designated Partner)
  8. Copy of the disclosure of the interest of Partners and Designated Partners.
  9. Subscriber Sheet duly signed by the partners or designated partner and from the practicing professional.

Note: All the documents related to the Foreign Nationals/NRIs should be translated in the English language and duly notarized and apostilled.

After submitting Fillip form with the MCA department with all required attachments, the Registrar will issue a certificate of incorporation only after checking the forms and satisfying himself about the compliance with relevant provisions of the LLP Act to register the LLP.

Can we apply for DIN along with FILLIP form

We can also apply for a new DIN (Director Identification Number) in fillip form but a maximum of two DIN is allowed to apply in it, if anyone wants to apply more than two DIN then we need to apply in a separate application in form DIR-3.

Filing of LLP agreement (Form-3)

The LLP agreement defines the rights and duties of the partners and also among the LLP and its partners or designated partners. The LLP Agreement will print on Stamp Paper and the values of Stamp Paper are depending on the state to state stamp duty rate. Form 3 (Information with regard to LLP) needs to file with the MCA within 30 days of the date of incorporation.

For registration please click here https://www.mycorporation.in/india/llp-register-limited-liability-partnership

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