A Limited Liability Partnership (LLP) is a type of business entity that combines the features of a partnership and a corporation. In India, LLP is governed by the Limited Liability Partnership Act, 2008. It is considered as a separate legal entity, separate from its partners and is responsible for its own debts and liabilities. In this article, we will provide an overview of how to register a Limited Liability Partnership Company in India and the process involved.
Pre-registration Process Before registering an LLP, the following steps should be taken:
- Choose a unique name: The first step in registering an LLP is to choose a unique name for the company. The name should not be identical or too similar to an existing company and should not be offensive or misleading.
- Obtain Digital Signature Certificates (DSC) and Director Identification Number (DIN): DSC and DIN are mandatory for the partners of the LLP. DSC is used for e-filing of documents with the Ministry of Corporate Affairs (MCA) while DIN is a unique identification number assigned to the partners.
- Obtain PAN and TAN: PAN and TAN are required for the LLP, as it will be used for all financial transactions and for filing income tax returns.
Registration Process Once the pre-registration process is completed, the following steps should be taken to register an LLP:
- File Form 1: File form 1 (LLP Incorporation form) with the MCA along with the required documents, such as the Memorandum of Association and Articles of Association, PAN and TAN, DSC and DIN.
- Obtain LLP Agreement: The LLP agreement is a document that lays out the rights, responsibilities, and liabilities of the partners. It should be executed by all the partners and filed with the MCA.
- Obtain Certificate of Incorporation: After the MCA has approved the LLP Incorporation form, the LLP will be issued with a certificate of incorporation.
- Obtain PAN and TAN: The LLP should apply for PAN and TAN, as it is mandatory for all companies.
- Obtain GST registration: If the LLP is engaged in any commercial activity, it should obtain GST registration.
- Obtain Shops and Establishment Licence: If the LLP is operating from a physical location, it should obtain a shops and establishment licence from the authority.
The bottom line
Thus, you might have got to know about the basic information about the Limited Liability Partnership company. With these information, you can now proceed going with the limited liability partnership company registration in India.