Limited Liability Partnership (LLP) is preferred by most of the entrepreneurs in India because it contains the benefit of both a partnership firm and a company. That is why it?s called a hybrid organization. In India an LLP is governed by Limited Liability Partnership Act, 2008.
Features of LLP
- The capital to start an LLP is low
- Like a company, an LLP also has separate legal entity
- Each member has limited liability based on the contribution
- Less legal formalities
Minimum two members are needed to form an LLP but there is no upper limit for the numbers of members. At least two partners should be designated and their duties are implemented by the LLP agreement. Among the two, one must be resident of India.
Steps to form an LLP:-
Digital Signature Certificate (DSC)
Application for digital signature of designated partner is the first step to start an LLP. All the online documents are needed to be digitally signed. There are two categories of Digital Signature; class 2 and class 3. You can obtain the DSC from a government certified agency. These agencies are in every state of India. At the time of LLP company registration in Jaipur you can obtain this DSC from an agency in Jaipur.
Reservation of Name
The second step is reserve a suitable name for the LLP. The designated partners need to fill the LLP-RUN(Limited Liability Partnership-Reserve Unique Name) form for the name reservation process. Remember that the name you choose should be unique and not same with any other corporate body. Otherwise it will be rejected by the registrar. After submission of the LLP-RUN, the name will be available for 20 days only and you should register the LLP within these 20 days.
Director Identification Number (DIN)
DIN is an identification number requires for designated partners of the LLP. Form DIR-3 has to be filled up for this number. Documents like PAN and Aadhar card of the designated person needs to be attached with the form. The form should be signed by MD or CEO of the company.
Incorporation of LLP
FiLLiP(Form for incorporation of Limited Liability Partnership) is the form that has to be filled up for incorporation of LLP. If the designated person of your proposed LLP doesn?t have DIN, you can also apply for DIN through this form. Name reservation can also be done via FiLLiP.
Documents required to register as LLP
Documents of Partners
1. ID Proof of Partners ? ID proof of all partners must be submitted at the time of registry with a passport size photograph. Usually PAN card is the primary ID proof in this case.
2. Address Proof of Partners ? PAN card is the primary ID proof but it has not the address mentioned in it. So, as address proof telephone bill, electricity bill or gas bill that contains the partner?s name has to be provided.
3. Passport ? If the partner of an Indian LLP is an NRI or foreign national then this person has to submit Passport compulsorily.
Documents of LLP
1. Proof of Office Address – Gas Bill, Telephone Bill or Electricity Bill has to be submitted at the time of registration as a proof of office address. If the place is on rent, then rent agreement and NOC of landlord are also needed.
2. Digital Signature Certificate (DSC) ? DSC of one designated partner is needed to fill all documents online.