Procedure to incorporate Limited Liability Partnership (LLP)

Registration of partnership firm is governed by Indian Partnership Act, 1932. Since the day of independence many of the business are being carried on in the form of partnership and where two or more persons desirous of conducting any business jointly, it was the easiest form of arrangement but as the time progress and changes in business laws warranted other form of business structures, this traditional way of doing business become unpopular. In the year 2008 advance version of partnership i.e. Limited Liability Partnership was brought by the government by way of introducing Limited Liability Partnership Act, 2008. The advantageous of LLP in India are much as it is a newly growing business structure. Major advantageous of doing business through LLP over traditional partnership are as under:

· It is easy to start and manage, less compliances, fewer formalities and much similar to limited companies in many aspects.

· It is a separate legal entity from its partners. it can own assets, enter into contracts. Moreover, one partner cannot be held responsible for the act of another partner.

· No minimum and maximum capital requirement.

· No limit on maximum number of partners.

· No requirement of compulsory audit to small LLPs.

· Liability of partners is limited as in case of limited companies. Personal assets of partners cannot be used to pay business debts except in some exceptional cases.

· Easier to operate and easier to windup.

Brief procedure to incorporate an Indian LLP is as under:

Step-1

First of all, applicant will have to apply for reservation of proposed name by filing of LLP-RUN form online at MCA portal on payment of requisite fee;

Step-2

Once the name is approved by the Registrar, applicant have to obtain digital signature certificate and DPIN of all the partners, after that he has to fill the required information in e-form FiLLiP along with some attachments and the e-form should be duly certified by the Practicing Professional;

Step-3

After verifying the contents of the e-form FilliP, the registrar shall issue certificate of LLP incorporation. The partners of LLP then have to file LLP agreement in e-form 3 within 30 days from the date of registration of LLP.

For comprehensive format of LLP agreement in MS-Word you are requested to WhatsApp us at +91-6387250634.