What are the procedures for formation of LLP in India

What are the procedures for formation of LLP in India



A LLP is an efficient business structure and has less compliance requirements. It is a separate legal entity and continues even after death, bankruptcy, insanity or change in partners. It can have up to 50 designated partners and there is no minimum capital requirement. Unlike the traditional partnership firm, LLP's are taxed separately and have a perpetual succession. It also provides protection against personal liability of the partners.

Name Reservation: In order to reserve the name of the proposed Limited Liability Partnership, one needs to file a web form named RUN-LLP on the MCA portal. This is an easy and simple process wherein you can submit a maximum of 2 names with their significance. The names are verified and approved by the concerned state RoC, and on approval the name is reserved for a period of 90 days.

Filing of LLP Agreement: After successful incorporation, you need to submit the LLP agreement which specifies mutual rights and duties amongst all the designated partners. This can be filed online in FORM-3 on MCA portal within thirty days of the incorporation date of your LLP. Moreover, it is required to be printed on stamp paper and the value of the stamp depends upon the State where the registered office of your LLP is situated.

PAN and TAN: Lastly, you need to apply for getting PAN and TAN for your LLP with forms 49A and 49B on the basis of the details furnished by the Designated Partner. The application can be filed online or offline, but it requires the DPIN and DSC of the partners along with proof of address and date of birth.

 

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