LLP, which is widely known as a Limited Liability Partnership. For all entrepreneurs, this organization is as important as eating healthy food if you want to stay longer in this precious world. If we talk about its history, Limited Liability Partnership debuted in 2008 in Mumbai (the city of dreams). In the business arena, LLP is quite a unique concept. In addition, numerous perks are associated with it. Hence, it is crucial to follow the steps seriously while you are going about llp registration process india. In this blog, we will dive deep into the importance of this organization, its benefits, and the exact steps you must follow while registering for an LLP, commonly known as a Limited Liability Partnership. Before we discuss everything, we mentioned above, let us have a brief discussion regarding what exactly LLP is.
Why are limited liability partnerships favored among entrepreneurs?
The prominence of LLP can be seen for the time being. Although there are various perks, it is crucial to have a deeper understanding of what exactly this organization does when it comes to entrepreneurs. Due to their remarkable ability to safeguard assets compared to traditional firms, LLPs have emerged as beneficial in this case. Hence, LLP has turned out to be a distinctive and crucial business entity. Moreover, it is legal. Some features that make this entity stand out are as follows:
- It is a separate legal entity.
One of its crucial features is that this business organization is considered a separate legal entity. But why does it matter? Well, it generally allows the rights and liabilities of an LLP, which are typically independent of its partners.
- A minimum of two partners is required.
To create an LLP, two people have to work together. However, there is no upper limit. Hence, multiple partners can be included.
There are various other features associated with LLP, such as protection from business liabilities, its cost-effectiveness, and more. Let us dive deep into the actual procedure of registering for LLP smoothly.
Steps needed to register for Limited Liability PartnershipÂ
- Step 1: Acquire the DSC, or Digital Signature Certificate.
The first and foremost requirement for a smooth LLP registration is that you get a hold of this certificate, which is widely known as the Digital Signature Certificate. In addition, you need to obtain the certificates for all the designated partners of the LLP. This must be done before you go about the actual registration process. Why is this certificate crucial, though? We know how catfishing seems to be normal in this digital age; hence, the need for genuine identities of all people in business or anywhere is required. DSC generally contains all the personal information of the user, such as name, email, date of birth, certificate issuance, and certifying authority. One should get the certificate from government agencies and not just anyone. This ensures that the certificate is genuine. By finding the agency, you can straight away apply for a DSC certificate and download it as well.
- Step 2: You need to apply for a Designated Partner Identification Number (DPIN).
The second step is crucial, as you need to apply for a Designated Partner Identification Number (DPIN). If you are someone who wishes to be a partner in any LLP, it is mandatory to get your DPIN, commonly known as a Designated Partner Identification Number. While you apply for DPIN, do not forget to carry documents such as your photograph, identity proof, and address proof; these documents are mandatory (you must have scanned copies of the above-mentioned documents with the form). At last, the form must be signed by a certified officer, such as a company secretary or chartered accountant.
- Step 3: Choosing the name for the proposed LLP
There are times when a name gets rejected if it doesn’t comply with the guidelines proposed by the Ministry of Corporate Affairs. Moreover, the name you choose should be unique and not resemble the existing LLP, firm, or company. When you go through the Ministry of Corporate Affairs website, you will see the MCA portal, where you will see if your proposed LLP name resembles others or not. You can filter out the names using this service. The name will only be accepted if it complies with all the guidelines and does not resemble the existing firms. If nothing is objectionable, you can go with the name you have chosen.
- Step 4: Form for Incorporation of an LLP (FiLLiP)
FiLLiP, which is generally known as the Form for Incorporation, has turned out to be a crucial document when you register for a limited liability partnership. This form has all the data related to LLP. The essential information this form collects includes the establishment date of the LLP, the proposed name of the LLP, and the details of all the partners included in the LLP. It also includes a declaration that the partners will comply with all the rules and regulations associated with the LLP.
- Step 5: Drafting of the LLP Agreement
Another important requirement is the filing of an LLP agreement. It is mandatory to prepare this draft as it defines the basic rights and duties of the partners as well as the LLP. This agreement should be filed on the MCA portal in Form 3. The agreement must be notarized and filed within 30 days of incorporation.
Once you have all your documents mentioned in the above steps verified, the registrar will register the LLP and issue a certificate of incorporation. This certificate ensures that your LLP has finally come into existence.
Wrapping up
In conclusion, LLP registration is necessary to be known as a legal entity. Also, for a smooth process for llp registration, you must choose a reputed and reliable partner so that in the filing of the documents, you do not have to go through any errors. If you want to establish a successful LLP, you must take the registration process seriously, and with the help of experts, the procedure becomes smooth and not challenging. Just keep all your documents intact, and the registration journey will be smooth!
