LLP Registration – It’s not been a long time since LLPs came into existence, they have gained popularity day by day throughout the nation. LLP is quite a new concept which has come with a wide range of benefits over the other traditional partnerships and corporations. With that, let us know how to go about registering an LLP in the country.
Unlike other traditional businesses, a limited liability partnership is basically a partnership in which partners have limited liabilities depending on the jurisdiction. It does not burden all its members with “unlimited liability”. The basic idea behind the introduction of Limited Liability Partnership is to provide a form of business entity that is simple to maintain while providing limited liability to the owners.
So for starting a new LLP, the first thing you need to do is get it registered. Here are the steps which are involved in an LLP Registration–
- Acquiring DSC
The Information Technology Act, 2000 requires all electronic documents to be signed digitally using Digital Signature Certificate (DSC) for ensuring the required level of security. Thus, the partners of the proposed LLP whose signatures are to be affixed on the e-forms has to obtain Class2/Class3 DSC from any authorized certifying agency and register it on MCA portal.
- Obtaining the DIN/DPIN
You need to obtain the DIN/DPIN i.e. Designated Partner Identification Number which is supposed to be done by all the designated partners of the LLP. For that you need to file e-form DIN-1. However, if you have already got a DIN, you can use that as well.
- Applying for a Name
To apply for the name of LLP, you need to file Form 1. Name search facility is available on MCA portal where appears a list of similar/closely resembling names of existing companies/LLPs based on the search criteria filled up. So you can select a name other than those appearing at MCA portal to be filed in the form. A confirmation mail is received after getting name approval from the ministry.
- Filing of Form 2 for Incorporation and Subscription Document
Once the name is reserved by the Registrar, log on to the portal and fill up Form 2. The Registrar after getting satisfied about compliance with relevant provisions of the LLP Act will register the LLP and issue a certificate of incorporation.
- LLP Agreement
After you’re done with the above steps, you need to file your LLP agreement within 30 days in prescribed Form 3. Once it gets approved all the formalities for registration gets completed.
LLP Registration Cost
The fee structure for LLP registration of Limited Liability Partnership including conversion of a firm or a private company or an unlisted public company into Limited Liability Partnership:
- Limited Liability Partnership whose contribution does not exceed Rs.1 lakh – Rs.500/-
- Limited Liability Partnership whose contribution exceeds Rs.1 lakh but does not exceed Rs.5 lakhs – Rs.2000/-
- Limited Liability Partnership whose contribution exceeds Rs.5 lakhs but does not exceed Rs.10 lakhs – Rs.4000/-
- Limited Liability Partnership whose contribution exceeds Rs.10 lakh – Rs.5000/-
The average time taken to complete a LLP registration is about 15-20 working days, subject to government processing time and submission of documents by client.