5 Tips for LLP Registration Process in India

There have been simplifications in processes and steps for doing business in India. For instance, the Companies Act focuses and re-engineered the registration process for companies frequently. However, the LLP registration process or rules for its operations and compliance remain untouched for years.

Corporate industry & laws of LLP since its implementation has gone through very minimal and nominal changes in the LLP Registration Process. However, in the recent era, there have been significant amendments, circular and notifications issued by MCA. Let's discuss the LLP registration process in brief.

Simple Limited Liability Partnership Registration Process

Follow these 5 tips to get the LLP registered with ease:

·          DSC: Get the DSC for every designated partner that requires for digitally signing the registration forms and can be used after that for further compliances.

·            Apply LLP Name: Apply for name reservation of LLP through web service RUN-LLP available on the MCA portal. The proposed name shall not be similar to the name of already registered LLP, Company, Trademark, etc. Up to 2 names can be applied in a single form.

·            Apply for Registration: Once the proposed LLP gets the name approval letter, it can Apply for the LLP Registration Online within 20 days of receipt of the name approval letter. Online application has to be submitted in e-form FiLLiP available on MCA for downloading. Download & fill the complete form with the attachment annexed to it. E-sign the form using DSCs of designated partners and such form shall be certified digitally by Practicing CA/CS/Lawyer. Up to partners can apply DPIN in this form directly in case they don’t hold the same. Upon the receipt of the application, the registrar after verifying the form can approve or put to resubmit the application. Certificate of Incorporation gets issued on approval of the application by Registrar.

Ø  Documents attached to the form are:

ü  Address proof of applicants such as electricity bill/bank statement/mobile bill

ü  Id proof of applicant such as voter-id/driving license/passport

ü  PAN & Aadhar of applicants

ü  Registered office proof

ü  NOC from the landlord (in case of rented premise)

ü  Subscriber sheet with the consent of partners

·    PAN-TAN Application: PAN-TAN of LLP is applied separately after getting the Certificate of Incorporation through Form 49A and 49B. Annex the Certificate of Incorporation as a supporting document with these forms. However, this requirement has been omitted in Companies which is now applied directly in registration forms. 

·     Draft and File Agreement: After receipt of COI, the LLP Registration Step gets completed by filing the drafted agreement. The agreement contains the clauses of rights and liabilities of each partner. File the agreement in Form-3 which can be downloaded online through MCA.

Tips for the Designated Partners

Following Caution Points shall be kept in mind by the partners for a smooth registration process:

• Under LLP-RUN up to names can be applied. The registrar provides the chance of resubmission in case the name does not get approved in the first place. However, if the name is rejected in resubmission also, the applicant needs to file a new application by paying fees of INR 1000 again. Therefore it is advisable to properly check the name availability through MCA before applying the same.

• Other than RUN-LLP, the name can also be applied directly in application form FiLLiP. However, only one name can be applicable in this form. Therefore it is advisable to double-check the name is available before directly applying it in FiLLiP because if the name is not approved, the entire form has to resubmit and complete document preparation has to be done again.

•  Name approval letter remains valid for the period mentioned in such a letter, failing which the name will be expired, and a new application will be filed once again.

•  Up to 2 DPIN is allotted through FiLLiP. In the case of more than two partners, the same can be applied through DIR-3 for the remaining designated partner's DPIN.

• Agreement filing is processed by ROC rather than CRC; thus, processing time took much more in contrast to the other two processes.

Conclusion

For ease in doing business in the corporate sector, Online Registration Process of LLP have now been simplified and amended such as CRC takes maximum one to two days for processing the application, therefore, providing the opportunity to do the business with fewer efforts, minimal time consuming, and with least cost involved.

Contact us for consultation or guidance concerning the registration & compliance of LLP.