Businesses are all fun the more risk you take the more chances are of bigger success. So, what about liability? Should one just take all the risk of losing all the assets completely ?A partnership of business: what happens if you lose all the money you have? Well, until 2009, the only organisational structure for setting up a Partnership business was a Partnership Firm, which was extremely outdated and had a number of flaws. In the year 2009, the government introduced a new form of organisational structure for Partnership businesses, which overcame all the flaws that the older structure had. This new form came to be known as the “Limited Liability Partnership”.
But what exactly is a Limited Liability Partnership?
A Limited Liability Partnership is essentially a type of Partnership business, with features like distinct legal identity, owing to a mandatory requirement for incorporation, legal credibility, owing to its record in public databases, limited liability for owners, and separation between management and ownership. We have explained each of these benefits in detail in further sections.
Stepwise Process of LLP Registration
The process of LLP Registration is extremely simple, easy, which begins with arranging your documentation and ends only after you receive the Certificate of Incorporation.
Documentation: Before beginning the process of LLP registration, we advise that you arrange all required documents, as missing even one of them can lead to your application getting rejected.
Select name of the LLP: The name of your LLP should not only be practically viable but also in compliance with the necessary guidelines drawn by different laws, including the Companies Act (2013).
Draft LLP Agreement: LLP Agreement, signed by all its partners, is the basis for the formation of the LLP. Therefore, it is essential that you draft the agreement, before creating an LLP.
Fill Out the FiLLiP Form for LLP incorporation: Now that every prerequisite is fulfilled, you can fill out and submit the application for LLP registration, FiLLiP, with the prescribed documents and application fee to the RoC.
Issue of Certificate of Incorporation: After having examined the submitted application, the Registrar of Companies will issue a Certificate of Incorporation as a conclusive proof that the LLP has been registered.
Register LLP Agreement: Within 30 days of registration of LLP with the Registrar of Companies, a copy of the LLP Agreement, stamped by a public notary, needs to be submitted for registration.
List of Documents Required For LLP Registration
Now that we know of it, why not discuss the documents that are required as well? There are multiple documents required for LLP registration that can be categorised into the documents of all partners, of the applicant designated partner, of the registered business address, and other legal drafts. We have listed below all documents that are necessary for LLP registration in India. A failure to furnish any of these documents can result in the rejection of your application form.
Here’s the list of documents that you require:
Documents of the Partners
- Photograph: Every partner must submit a recent passport size colored photograph with white background. The photograph should have a full face, front view, eyes open. With a full head from top of hair to bottom of chin.It has to be ensured that the photograph is without spectacle or cap.
- PAN Card: It is mandatory for partners who are Indian nationals, to submit their PAN Card. Special care must be exercised to check if the particular appearing on PAN.
- Identity Proof: Any one among Voter ID, Driving License, Aadhar Card, and Passport can be submitted as the Identity proof of the partners. However, if the partner is a foreign national, submitting his passport as the identity proof will be mandatory.
Documents of the Registered Office space & declaration of the partners as they must give their consent declaring the capital that they will invest in the LLP.