Incorporation of Limited Liability Partnership

Limited Liability Partnership

In today’s corporate world there is a huge need of new amendments and changes in procedure & way of doing work, for this Government has made a lot of changes in essential elements to incorporate LLP for better transparency & working of the companies and you'll also know about formation of LLP. Today, we will discuss the legal effect of incorporation of limited liability partnership.

However, this results in increased difficulty for the small businessman to do his business without worrying about following various compliances and procedures and essential elements of LLP.

As a result of such effect, the Government has made an amendment, named as the concept of Limited Liability Partnership, further we'll discuss the essentials of LLP.

Limited Liability Partnerships have become popular in the last few years. & now here we will focus on the process of forming a Limited Liability Partnership along with the steps & elements required for the incorporation of an LLP. Let us explain the essential elements to incorporate a limited liability partnership.

Explain the Essential Elements to Incorporate a Limited Liability Partnership and Steps Involved Therein Under LLP Act, 2008.

The essential elements required for incorporating an LLP or essential elements to form LLP are as follows:

1.  At least 2 persons as partners, whether they are individual or a body corporate or both.

2.  A place defined as a registered office in India for communication purposes.

3.  At Least two individuals as designated partners.

4.  Each designated partner of an LLP should have a Designated Partner Identification Number (DPIN) that is allotted by the Ministry of Corporate Affairs (MCA).

5.  Agreement between the partners or between the LLP and its partners.

6.  A separate name for LLP under incorporation of LLP CA foundation.

Steps Required for Forming an LLP

Steps:

1.  Obtain Digital Signature (DSC) of proposed & designated partners.

2.  Obtain DPIN of proposed & designated partners using form DIR-3 or apply for the DPIN using LLP_FILLIP Form.

3.  Apply for the name of the LLP either by Using RUN-LLP services or by applying directly using incorporation form i.e. LLP_FILLIP

4.  File form LLP_FILLIP & attach following documents with it

• Consent letter of each proposed & designated partner.
• Address Proof of the place of business of LLP.
• Identity proof of proposed & designated partners.
• Residential address proof of proposed & designated partners.
• A sheet of Subscriber.
• List of LLP(s) and or Company(s) in which a partner or designated partner is currently holding a position as a director or partner.
• NOC or approval of the person holding ownership of the trademark or copyright for their registration of such trademark or copyright.

Note:-

• Approval is required in a case where the proposed name contains any word(s) or expression(s) that require approval by the Central Government.
• Approval is also required in case of collaboration and connection among any foreign country or place, from prescribed competent authority for the same.
• Also, the name approval letter is required in a case, if the name of such LLP is already approved using RUN-LLP services.

5.  File the LLP Agreement within 30 days of incorporation with the Registrar

Important Note:

• RUN-LLP services for the name of LLP is optional for the applicant, he can also directly apply for the LLP name using incorporation form LLP_FILLIP.
• Obtaining DPIN for proposed & designated partners is optional, an applicant can directly apply for the same using incorporation form LLP_FILLIP.
• When Ministry approves the name of LLP such name gets reserved for the applicant for a period of 90 days.
• The value of Stamp paper to be used & the amount of notary of LLP Agreement changes as per one state to another state.

In this way, you can understand incorporation of LLP meaning. The above points keep in your mind as incorporation of LLP notes whch resolved all the issues regarding the LLP.