Limited Liability Partnership is one of the fastest growing form of business in India. LLP contains the elements of A Private Company as well as of the Partnership Firm. It Gives the Benefits of Limited Liability Company and flexibility of a Partnership, so it may also be said as the hybrid of A corporate Structure & A Partnership Structure.
Benefits of LLP are,
LLP is organized and operates on the basis of an agreement.
LLP provides flexibility without imposing detailed legal and procedural requirements.
LLP enables professional/technical expertise and initiative to combine with financial risk taking capacity in an innovative and efficient manner.
The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name.
The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.
Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partnerís wrongful business decisions or misconduct.
Mutual rights and duties of the partners within the LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity.
Obtain DSC & DPIN
Digital Signature Certificates (DSC) are the digital equivalent (that is electronic format) of physical or paper certificates. Examples of physical certificates are drivers' licenses, passports or membership cards. Certificates serve as proof of identity of an individual for a certain purpose; for example, a driver's license identifies someone who can legally drive in a particular country. Likewise, a digital certificate can be presented electronically to prove your identity, to access information or services on the Internet or to sign certain documents digitally. Like physical documents are signed manually, electronic documents, for example e-forms are required to be signed digitally using a Digital Signature Certificate.
DPIN: It is an unique Identification Number allotted to an individual who is an existing Designated Partner of a company or intends to be appointed as Designated Partner of a company.
Before filing the actual Incorporation documents with the ROC, we need to be sured about the name of the Proposed Limited Liability Partnership, whether the applicant will be able to get the name or not. So, we need to Reserve our Proposed LLP name with the ROC, Which we do with the filing of the form LLP-1.That Reserved name of the company is valid for 60 days from the day you get it's registered.
Drafting of LLP Agreement
Agreement is the document which can be said as the Constitution of the Limited Liability Partnership. It includes all the possible criteria as well as the issues which can be raised at the later level while carrying on the firm other than the common information regarding the LLP. So, to remove the future problems while running the business, Agreement is to be made. So, while drafting this Agreement, at most care is needed, so that the each & every aspect of the possibility is covered under the agreement.
Filing E-form with ROC
After Name Approval & Drafting of Agreement, now we needs to file LLP-2 (Form for incorporation of the Limited Liability Partnership) which includes Registered Office Proofs of the Place where the Registered Office of LLP is proposed to be situated, consent letter as well as the LLP Subscription Sheet dully signed from the Designated Partners of the Proposed LLP.
After 3-4 days of filing the Incorporation form with the ROC, ROC gives its remark over the Incorporation. If ROC founds that all things are in order and as per the standard, then ROC issues Certificate of Incorporation. On the other hand, if ROC found something missing, then they send the form for Re-submission, and after completing of Re-submission of the form, ROC provides Certificate of Incorporation. But, once the form goes in Re-submission, it takes 3-4 days extra. Normally, it takes 7-8 days for name Approval and 8-12 days for Incorporation approval after name approval, if ROC found everything is in order, otherwise 7-8 days will more be considered. Totally, it takes 30 working days of Incorporation of the company.
DIN for two Designated Partners
DSC for two Designated Partners
MOA and AOA
ROC (Registrar of Companies) Registration Certificate
PAN & TAN of Company