Overview of LLP Registration

Limited Liability Partnership is a type of partnership firm which is mostly preferred by entrepreneur. It is the easiest form of business structure with the benefit of limited liability. LLP registration gives freedom to partners to form a partnership structure where the liability of each partner is limited to the amount they contribute into the business. Limited liability partnership firm registration means that if the partnership fails, creditors cannot ask for partner’s personal property or income.

What is Limited Liability Partnership Firm?

LLPs or Limited Liability Partnership is a type of business structure which offers extra benefits in comparison to partnership firm. It provides limited liability to its partners at a very nominal compliance costs. Moreover, the Partners of the firm can organize their internal structure like a partnership firm.

In short, LLP is a separate legal entity from its member that has the power to extend all its assets keeping the liabilities of partners limited. Hence, a Limited Liability Partnership is a hybrid of a company and a partnership firm.

Benefits - Why one should go forLimited Liability Company Registration in India?

• Enjoys the Status of Corporate Bodies

  As per Section 3 of the Limited Liability Partnership Act, 2008, under LLP registration a firm is a corporate body which has come into force with effect from April 1, 2009. The Indian Partnership Act 1932 is not applicable to LLP.

• Perpetual Succession

  A Limited Liability Partnership firm has a benefit of perpetual succession and can continue its existence even after the retirement, death, insanity of one or more respective partners in the firm.

• Shares Limited Liability

  The most important feature of LLP is limited liability that all its partners should entertain which means their personal assets are safe and won’t be used to pay the losses or debt of the firm. Apart from it, innocent partners of a Limited Liability Partnership firm are not liable to pay for the wrong deeds done by some other partner.

• Fewer Credentials are required

  A person can start an LLP firm with just two partners out of which one should be an Indian resident. The designated partners of limited liability partnership firm can either be an individual or a corporate body. Moreover, there is no specific capital requirement to incorporate a limited liability partnership firm registration.

• Quicker Decision Making Process

  An agreement is printed on a stamp paper and signed by all the partners that define their roles and duties in the firm. It helps them in the decision making process.

• Easy Online Registration and E-filling

  MCA has simplified LLP registration and made it an easy online procedure. The forms and the documents are filed electronically on the official MCA portal. A designated partner of a limitedliability partnership firm has to obtain DSC to sign these documents and forms.

• Easy Conversion

  If a public or private company or a partnership firm decides to emerge as a limited liability partnership, they can easily convert as per the provisions of the applicable act.

• Efficient Business Management

  The business is managed by the respective partners as per their roles and duties. The designated partners of the firm are responsible for the legal compliances.

• Profit Sharing Business

  Profit is equally shared amongst all the partners of a limited liability partnership firm. An LLP registration cannot be incorporated for a charitable purpose. Its purpose is to carry on business activities with an aim to earn profit.

Registration Procedure for Online Limited Liability Partnership Firm

LLP registration is an easy online procedure that can be accomplished within 4 registration steps and 3 post incorporation steps. Here is the step by step guide for Limited Liability Partnership firm Registration:

• Firm’s Name: Apply for Name Approval

  The third step under LLP registration is reserving a name for the limited liability partnership firm. For that, an applicant has to file LLP-RUN form. The name should be unique and non-offensive. For this, you can use the free name search facility available on the MCA Portal. The system is quite helpful and provides a list of names resembling with your firm’s name. This would help you to select an appropriate name. An applicant can provide up to 2 names that would be further analyzed by the registrar of companies. In case of rejection/objection, you can re-submit your form after 15 days of the rejection.

  1. Login on MCA Website: - You have to create a login account on MCA Website whereas the pro-existing users can utilize earlier account also. You have to click on the emblem “RUN” in MCA Service after Login. An online form will be displayed where an applicant have to fill the information online which can’t be downloaded.

  2. Details to be mentioned in Online Form: You have to provide information, such as- Entity type LLP, LLPIN (when an existing company desires to change its name and is utilizing RUN to reserve a new name for approval), Proposed name  (under the Auto Check Facility), Comments (cite Objects of the proposed LLP and any other pertinent information Like Trade Mark etc.), Choose File (Any relevant attachment)

  3. Choose File – PDF and Submission on MCA Website: - It is available to upload the PDF documents. User shall submit the Form with MCA website after completion of above steps.

  4. Payment of Fees and Validity of Reserved Name: It must be noted that there is no option of pay later challan in the Online form “RUN”. Therefore, the applicant has to pay fees right away after submission of form, and the challan shall be generated afterwards. Moreover, the reserved name will be valid for 20 days from the date of approval of Firm’s Name.

  Note: - It must be noted that the DSC and the DIN shall not be needed for filing the online form RUN, DSC & DIN not required for filing of RUN form for reservation of Name. Only account of MCA portal is mandatory. Moreover, only one Resubmission of application is permitted in case of reservation of Name. Two Names can be inserted in RUN form. As per “Register office Fees Rules”, Fees shall be Rs. 1,000/-. You must note that it is not mandatory to attach documents while reserving name

• Firm’s Incorporation

  Once the name has been reserved for the limited liability partnership firm registration you can move ahead to the incorporation of your LLP. For this, you have to file FiLLiP i.e. Form for incorporation of Limited Liability Partnership. It is filed with the registrar of the firm of the respective state in which the registered office is situated. Applicant has to pay a particular amount of incorporation fees as per the Annexure “A”.

  All the documents and applications are duly checked by the authorities and if all goes well, incorporation certificate will be issued.