How to Register an LLP
LLP is always considered as the next best alternative available in comparison to a Private Limited Company. Comparing it to the Private Limited Company, there are many pros and cons.
Because of its flexibility feature, the number of LLP Registrations are increasing in numbers. Despite of having numerous benefits, the LLP as a business form was still untouched because of its unfamiliarity.
The LLP need to be registered under Limited liability Partnership Act, 2008.The process to register an LLP is also kept simple by MCA to attract the formation of the same, the complete process is online, let’s have a look at the quick steps mentioned as under:
- Get DSC
- Apply for Name Reservation
- Apply for Incorporation
- PAN & TAN Application
- Filing of LLP Agreement
- DSC is Digital Signature, which is a pre requisite for any online process with MCA. Hence obtaining a DSC is must, without which the online Forms can’t be signed. The DSC is applied by providing Proof of Identity and Residential Proof. The PAN card is mandatory as DSC is PAN based.
After obtaining the DSC it also needs to be registered on MCA portal in the necessary category.
- The Name Application can be easily done through the Form available online on MCA Portal called RUN -LLP (Reserve Unique Name- Limited Liability Partnership). The Application will accept maximum 2 names which need to be entered based on priority. After entering the basic details, payment of prescribed fees needs to be done.
The Name Application once submitted will be processed by MCA and if approved the Name Approval letter will be issued which will be valid for 90 days, and if the name is not approved the resubmission need to be done within prescribed time limit.
- Based on the Name Approved, the Application for the Incorporation of LLP need to be done, the Application for DIN will also need to be done under Incorporation Form if an Individual applying to become Designated Partner is not having DIN. The Application should be done by attaching all the required documents.
The Application for Incorporation will be processed at central level that is Central Registration Centre (CRC).If the Form seems filed with all the required documents then MCA will issue the COI (Certificate of Incorporation), and if any information or document is lacking or any explanation is required then the form may also be asked for Re-submission.
- PAN & TAN Application
The Application for the PAN & TAN is made physically in case of an LLP with COI as an attachment. The processing of PAN & TAN is done by Income Tax Department directly and then PAN & TAN is issued accordingly.
- Filing of LLP Agreement
LLP Agreement is important document for the LLP which defines all the necessary information including total contribution, Profit sharing ratio, Partners Responsibility etc.
Once the LLP is incorporated, the LLP Agreement need to be filed within 30 days of the Incorporation date. Applicable Stamp duty as per the state and total contribution need to be paid on the LLP Agreement. The Stamp duty differs from state to state.
The Agreement if not filed in time limit, then late filing fees of Rs.100/- per day need to be paid till the filing date.
