Earlier there were only two forms of Organisation:
While Unlimited Liability Entities such as partnership were easy to register but they suffered the disadvantage of unlimited liability. Thus there was a need for a single entity that could combine the advantages offered by both these forms of organisations.
LLP registration is easier with post registration compliances less in comparison to a body corporate and unlike partnership where liability is unlimited LLPs limit the liability of partners to the extent of their capital contribution.
LLP registration is easier with post registration compliances less in comparison to a body corporate and unlike partnership where liability is unlimited LLPs limit the liability of partners to the extent of their capital contribution.
Any individual planning to become the partner of a LLP has to submit an application for DIN. According to the notification of MCA regarding LLP rule, 2009, any partner who will be appointed as the designated partner of a company will have to apply for DIN instead of DPIN. The application for this is filled using an e-form which has a nominal cost of R. 100.
Partner who is going to be registered as the designated partner need to get class 2 and class 3 DSC. Register on the MCA website, fill up the registration form and upload the DSC. After successful registration you will get an acknowledgment message.
Free name search facility is available on MCA portal. The system will provide the list of similar/closely resembling names of existing companies/LLPs based on the search criteria filled up. Download and fill Form-1 for reservation of name and fill in the details. Select name of the proposed. State the significance of the key word brief.
Mention the number of their partners along with details. Enter the monetary value of the partner’s share. Select the office of the registrar to fill the application. Pay the prescribed fees. On submission of complete application, you will get the certificate of incorporation.
It is not mandatory to file LLP agreement at the time of registration and it takes 30 days. Designated partners are responsible for doing all acts, matters and things that are required to be done for complying with the provisions of the LLP act. They are liable to all penalties imposed on the LLP. So it is very important to draft LLP agreement with professional help.
The LLP agreement needs to be uploaded. Once it gets approved all the formalities for registration gets completed.