What Are the Procedures for Formation of LLP in India
What Are the Procedures for Formation of LLP in India
Unlike a private limited company, a Limited Liability Partnership requires the least capital contribution to establish itself. The partners can contribute in cash or by way of movable and immovable property. The LLP can be owned by any number of persons or companies and it may purchase any type of property. In addition, it has less compliance burden as compared to private companies.
To start a Limited Liability Partnership, you need to have at least two Designated Partners who can be individuals or corporate bodies. If the applicant is a body corporate, it must submit a duly certified resolution on its letterhead indicating its consent to become a partner in the proposed LLP along with its PAN card and DSC. A DSC with validity of 2 years must be procured for each and every person seeking to become a Designated Partner.
The next step is to file Form FiLLiP online with the Registrar of Companies overseeing your state. The application must include a copy of the address proof of the proposed registered office as well as the name and signatures of the Designated Partners. If the LLP intends to use a name which is identical to or too similar to the name of any other LLP, company or trade mark, it must make an application to the Central Government in form 25 for permission at a specified fee.
Once all the documents are filed and formalities completed, the Registrar will issue the Certificate of Incorporation within 14 days followed by the allotment of LLP Identification Number (LLPIN). The last step is to file an LLP agreement which stipulates the mutual rights and duties of the partners. The LLP Agreement has to be printed on Stamp Paper, the value of which varies by state.
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