“A corporate business vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in flexible, innovative and efficient manner, providing benefits of limited liability while allowing its members the flexibility for organizing their internal structure as a Partnership”
Features of LLP
It has Separate Legal Entity, i.e. the LLP and the partners are distinct from each other.
After that, Minimum of 2 partners are required to form. However, there is no limit on the maximum number of partners for incorporation of LLP
No requirement of Minimum Capital Contribution.
Last but not least, It does not restrict the benefit of Limited Liability Partnership structure to certain classes of Professional only and would be available for use by any enterprise.
Advantages to form LLP
It is a form of business model which:
is organized and operates on the basis of an agreement.
provides flexibility without imposing detailed legal and procedural requirements.
enables professional/technical expertise and initiative to combine with financial risk taking capacity in an innovative and efficient manner.
Steps to Register LLP
Step 1 : Application for DIN or DPIN
All designated partners of the proposed LLP shall obtain “Designated Partner Identification Number (DPIN)”. You need to file eForm DIR-3 in order to obtain DIN or DPIN. In case you already have a DIN (Director Identification Number), the same can be used as a DPIN.
Step 2 : Acquire/ Register DSC
The Information Technology Act, 2000 provides for use of Digital Signatures on the documents submitted in electronic form in order to ensure the security and authenticity of the documents filed electronically. This is the only secure and authentic way that a document can be submitted electronically.
Step 3 : New User Registration
To file an eForm or to avail any paid service on LLP portal; you are first required to register yourself as a user in the relevant user category, such as registered and business user.
Step 4 : Incorporate a LLP
Apply for the name of the LLP to be registered by filing Form 1 [zip](Application for reservation or change of name) for the same. After that depending upon the proposed LLP, file required incorporation Form 2 [zip] (Incorporation document and Subscriber’s statement).
Step 5 : File LLP Agreement
After incorporation of LLP, an initial LLP agreement is to be filed within 30 days of incorporation of LLP. The user has to file the information in Form 3 ( Information with regard to Limited Liability Partnership Agreement and changes, if any, made therein).