Incorporation of LLP and its Relevant points. Find Complete Procedure for Incorporation of LLP. In this article we provide Step by Step Guide for Incorporation of LLP. My this article is about how to incorporate LLP, what is the procedure for incorporating, what are the documents to be provided, which all forms are required to be uploaded, if not applied than what all are the consequences, what are the pre-requisites for starting a LLP, what are the reasons for incorporating LLP, why any one would prefer LLP, rather than a company. The only and the simple reason behind it is the compliance procedures in LLP is less as compared to companies. The another reason might be the low maintenance charges and the low fees which make the small businesses also to incorporate the LLP.
Incorporation of LLP and its Relevant points
Pre-requisites for LLP:
There are some requisites for starting a LLP. They are:
- There must be atleast 2 designated partners of which atleast one of which should be resident of India.
- Should hold a DSC
- Registered Office
- LLP Name
- LLP Agreement
Must Read – Latest Income Tax Return (ITR) Forms
Incorporation procedure for LLP:
The incorporation procedure of LLP is similar to that of incorporation procedure that of private limited company. The procedure is as follows:
- Firstly all the designated partners should apply for Designated Partner Identification Number (DPIN). The application for the DPIN is to filed in form DIN-1. If you already have DIN, than the same can be as DPIN.
- The next step is to acquire the DSC by the certifying authority, Certifying authorities are those who have been authorised to issue digital signature.
- Next step is to know register the DSC on the MCA site.
- The next is to register as a new user on the mca site.
- Applying for the name of the LLP, in the Form No. 1
- Then apply for Form No. 2 in which the details of the partners, registered office etc. which should be witnessed and signed by any CA/CS/Advocate in practice. The partners shall have to file the required documents within 60 days from the name approval. If it is not completed in prescribed time than approval for the name has to obtained again.
- After it is approved by the Ministry of company affairs, you will receive a email from the mca site for the confirmation of the same.
- After approval, LLP agreement has to be filed within 30 days from the date of incorporation of the LLP, which has to be filed in Form 3. The basic details of any LLP agreement is Name of LLP, Name of designated partners, Rights and duties of partners, Profit sharing Ratios, Form of contribution, etc
The agreement may be amended but every change should be notified to the ministry of corporate affairs. If no agreement has taken place amongst the partners then duties and rights under Schedule 1 to the LLP Act shall be applicable.
- Consent of all partners to become a designated partner of Liability partnership, in Form 4.
Must Read – Taxation of LLP – A Complete Guide
Documents required for LLP Incorporation:
- Identity proof of partners
- PAN card of partners
- Utility Bill of the Registered Office Bill
- NOC letter from landlord
- Rent Agreement.
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