Incorporation / Registration of LLP

A Limited Liability Partnership (LLP) is a combination of a Partnership and a Company governed by the Limited Liability Partnership Act 2008. LLP is a special partnership that offers protection to each partner against any negligence on behalf of the other partners.

Table of Contents

• Advantages of LLP

• Procedure of LLP Incorporation

• Documents Required for Obtaining DSC

• Documents Required for Obtaining Director Identification Number

• Incorporation Method

• Requirements for Filing LLP Form 1

• Proposed Monetary Value of Partner's Contribution

• Drafting of LLP Agreement

• Filing of Form 3 LLP Agreement

Advantages of LLP

1. Liability Protection: The liability protection provided by an LLP is a significant advantage. Individual partners are not held personally responsible for any company debts or obligations. Any lawsuit or claim against the company cannot be held against the partners, thus protecting personal assets.

2. Flexibility: Partners have flexibility within business ownership under an LLP. Each partner in the business can decide their level of contribution and involvement. They are also not obligated to participate in business meetings or consultations unless they wish to.

3. Tax Advantages: Partners are liable for filing their personal income and self-employment taxes. The partnership itself is not responsible for paying these taxes. The company's credits and deductions are divided among the partners according to their interest in the company.

Procedure of LLP Incorporation

MINIMUM REQUIRMENT

• Minimum 2 partners
• DSC (Digital Signature Certificate ) of the Directors
• DIN(Director Identification Number) of the Directors

1. Obtain DSC

Obtain a Digital Signature Certificate from Authorized DSC issuing Authority.

Documents required for obtaining DSC :

Proof of Identity

Proof of Residence

One self attested passport size photograph

Obtain DIN

An application is to be made in Form DIR-3 to obtain the directors' DIN numbers after obtaining the DSC.

Documents required for obtaining Director Identification Number:

• Scanned copy of Passport-sized photograph( JPEG Format)
• Identity proof: Scanned copy of PAN card (passport if foreign national) and
• Address Proof: Driver's License/Voter ID/ Utilities Bill not more than two months old from the date of filing. Documents should be self-attested.

Register DSC

After obtaining the DIN number, register the DSC on the MCA portal in the name of the Designated Partner/Director. Navigate to MCA services -> DSC Services -> Register DSC.

Incorporation Method

Name Approval (Form 1)

Apply in Form INC-1 for name approval of the proposed LLP after finalizing the nature of business of the proposed LLP. A maximum of six names can be given in order of preference. CRC will approve the available and suitable name among the given names for the proposed LLP.

Note: Applicants can themselves check the available names on the MCA Website under MCA Services: Check LLP Name.

Once the proposed Company's name is approved, it remains valid for 3 months from the date of approval. Within these 3 months, LLP must be incorporated; otherwise, name approval in LLP Form 1 must be filed again with MCA.

Requirements for filing LLP Form 1

• DPIN/DIN of two designated Partner
• Name of the Proposed LLP
• Description of proposed business activity

Proposed monetary value of partner's contribution

Once the proposed monetary value of the partner's contribution is filled out and filed in Form 1, the contribution's monetary value in Form 2 should not be less than the value mentioned in Form 1.

LLP Form 2 (Incorporation Document and Subscriber's Statement)

LLP Form 2 must be filed within 3 months from the date of approval of LLP Form 1.

Drafting of LLP Agreement

The LLP agreement has to be drafted in accordance with the LLP Act. It is not mandatory to file the agreement at the time of registration and can be filed within 30 days. Designated partners are responsible for compliance with the provisions of the LLP Act. Professional help is recommended for drafting the agreement.

Filing of Form 3 LLP Agreement

The LLP agreement has to be uploaded. Once approved, all formalities for registration are completed.

Note: Form 3 must be uploaded within 30 days of the LLP's incorporation; otherwise, a penalty of Rs. 100/—per day applies.

Contact ADCA

For expert assistance in company registration and LLP incorporation, contact ADCA, one of the leading providers of company registration services in Bangalore.

FAQs

Is registration of LLP compulsory?

Yes, registration of an LLP is compulsory under the LLP Act, 2008.

How to incorporate an LLP?

An LLP can be incorporated by following the procedure of obtaining DSC and DIN, filing for name approval, and submitting incorporation documents.

What is an LLP registration number?

An LLP registration number is a unique identification number issued upon the successful registration of an LLP.

What is a valuation certificate in LLP incorporation?

A valuation certificate is a document that certifies the value of a partner's contribution in an LLP, often required during the incorporation process.

What is an LLP identification number?

An LLP identification number (LLPIN) is a unique number assigned to an LLP upon incorporation.

How to check LLP company name availability?

You can check LLP company name availability on the MCA website under MCA Services: Check LLP Name.

How to get company CIN/FCRN/LLPIN/FLLPIN?

These identification numbers can be obtained from the MCA portal upon successful registration of the company or LLP.

What is LLP Form 3?

LLP Form 3 is the form used to file the LLP agreement with the Registrar.

How much does LLP registration cost in Bangalore?

LLP registration costs in Bangalore vary based on professional fees, government fees, and other associated costs. Contact ADCA for a detailed cost estimate.