The article gives an overview of the process of registration/ incorporation of a Limited Liability Partnership (LLP) in India.
- First you need to confirm whether you require an LLP or not. LLP has its inherent advantages like inherent flexibility and lower compliance as compared to private limited Company. However, with recent changes in the tax laws in India, if your intent is to manufacture goods, you may opt for a Private Limited Company. However, if the business objective is not manufacturing, then its virtually equal between a private limited Company or a Limited Liability Partnership (LLP) with a slight bias towards its LLP for its simplicity in compliance procedures and flexibility in compliance.
- First, you require two or more people to form a LLP. So if you are alone, then you need to get a partner; maybe a friend or family member whom you trust completely. They can be holding as less as 0.01 % in your LLP.
- First step is to go for name reservation on MCA website. Select a name with unique prefix which satisfies the name reservation rules . You may be required to also do a Trademark Search to see if any similar name has been take up for trademark or granted one but the same should be within the same class of business objectives as your proposed LLP.
- Then apply for digital signatures of the partners. At least 2 partners should be designated partners as per the LLP Act.
- Take a No Objection or Consent letter from the owner of the place which you wish to give as the registered office address along with the ownership proof.
- Apply for Limited Liability Registration (LLP) incorporation in the Fillip Form with the Address and ID Proofs, subscription statements, NoC as discussed in Point 5 above etc.
- If the form and documents are okay, the same will be approved and the applicant will receive the LLP incorporation certificate on his/her email ID.
- LLP Deed- Form 3 : Though technically its a post-incorporation process, but its very important to File Form 3 with attached LLP Deed within 30 days of incorporation. The LLP Deed should be stamped adequately as per the respective stamp Acts of the State or Union Territory where the LLP has its registered office. You can also refer to this article https://www.cabks.in/how-to-draft-an-effective-llp-agreement/
- Other procedural things like PAN and TAN applications, stamps for partner/ authorised signatory and address, bank account opening etc. are required to be done with after incorporation.
- If there is Foreign Investment involved, then post-inward remittance of the capital contribution, RBI compliance needs to be completed.