LLP Registration Checklist in 2018
LLP stands for Limited liability partnership that provides limited liability protection to members associated with the company. Limited liability partnership (LLP) is considered to be the finest form of business for small businesses. LLPs are governed by the Limited Liability Partnership Act, 2008; which offers a platform to start partnership firms that are easy to operate and function swiftly. In this blog, We’ve explained the mandatory LLP Registration Checklist.
One of the biggest advantages of incorporating the LLP firm is that one partner or member of the firm is not liable to the misconduct or negligence of other members and it also provides the limited liability to the owner of the partnership regarding the debts incurred by the partnership. Hence every partner involved in the partnership can enjoy the benefit of limited liability protection.
It involves a really simple process for the incorporation, has fewer compliances to adhere and fewer formalities to be fulfilled. Swarit advisors are one of the most prevalent companies in the market. If you are looking to get the LLP registration for your partnership, you just need to contact swarit advisors. Their team of professionals will help you from scratch to the incorporation of the partnership.
New Amendment in the LLP rules, 2018
There are lots of changes brought into the Limited liability partnership amendment that was released on 18th September 2018 and came into effect on 2nd October 2018. So, let’s take a look at all the amendments one by one-
- There is an introduction of web service called RUN-LLP (Reserve Unique Name-Limited Liability Partnership) while in the earlier process there was a Form 1 known as the Application of reservation of the name or in case there is a need to change the name of the firm.
- There is a new well-integrated form known as the FiLLiP (Form for incorporation of Limited Liability Partnership) in place of the earlier Form 2 which was known as Incorporation document and subscriber’s statement.
FilliP offers the three services altogether. It includes-
- Reservation of the name of the partnership firm
- You can obtain the Designated Partner Identification Number (DPIN/DIN)
- Finally, the incorporation of the LLP
Variation in the Processing of eForms
When you submit an application through the web-service/eForms especially RUN-LLP, FiLLiP, Form 17, Form 18 and Form 5, it is going to be processed by the registrar at the centralized location; which is also known as Central Registration Centre (CRC).
How to use RUN-LLP service (Reserve Unique Name-Limited Liability Partnership):
If you are starting a new LLP, the first step is to reserve the name of LLP. For reserving the name of the LLP, there is a Web Service for the reservation of name or changing the name of already existing limited liability partnership (LLP).
There are only four relevant fields that need to be filled, where if we look at the older way of incorporating the LLP; you had to deal with 15 fields that required you to fill the four-page form for reserving or change of name.
For using the RUN-LLP service, if you are already registered on the portals, then you just need to log in directly, otherwise, you have to create an account for yourself and then you will be able to log in.
Let’s discuss the tabs/spaces where you have to mention the necessary details-
- New Incorporation or conversion-
In this, you just need to select one of the options from the new corporation and conversion of the firm into LLP/ Conversion of private company/ unlisted public company into LLP.
If you are looking for the reservation of the name of the already existing LLP then you have to enter the LLPIN. In case of the conversion of the private company/unlisted public company into LLP, you have to enter the CIN.
- Proposed name 1 and 2-
Proposed name 1 and 2 allows you to fill the two proposed names, out of which one will be selected.
In the comment tab, you have to provide the objectives of the name proposed by you in the above tabs and other comments in relation to that.
One of the major turns in the process of bringing these amendments is that you don’t have to file for DPIN/ DIN/ DSC separately.
Hope you have a basic idea of the new FiLLip form by now. Let’s discuss the insights of the FiLLip form.
Incorporation of Limited Liability Partnership through FiLLiP
There are certain new fields introduced in the FiLLiP form, we will let you know; how to fill these tabs in the correct manner-
- Whether the name is already approved by the Registrar of Companies
“Whether the name is already approved by the registrar of companies” tab is basically to accommodate the approved names (through the service of RUN-LLP and the names reserved through FiLLiP)
- Type of Incorporation
“Type of Incorporation” allow you to mention the type of incorporation which includes New Incorporation/ Conversion of the firm into LLP/ Conversion of a private company to Public/ unlisted public company into LLP).
- Selecting the number of designated partners
There is a separate field for selecting the number of designated partners/ partners in a tabular format. When you select a number in the table, there will be a section enabled in relation to the number where you have to fill in the required details
The moment you select the number of designated partners, you will come across two options designated partners having DIN/DPIN and designated partners without DIN/DPIN
These are few of the changes incorporated in the form of FiLLiP.
Steps Involved in the LLP Incorporation Procedure
Step1: Obtaining the Digital Signature Certificate (DSC)
The first step is to obtain the digital signature certificate for all the proposed designated/ partners of the LLP. Digital signatures are required to sign the documents that are submitted for the LLP registration.
Step2: Approval of the Name
This step involves the filing of the name approval through LLP-RUN service. You are allowed to propose two names for the LLP, out of which one will be selected.
Step3: FiLLiP form
The third step is to file the FiLLiP form, in which you will be filling the applications of DPIN and incorporation of LLP will be done.
List of Documents required for the LLP Registration
There is a certain list of documents that need to be handy if you are looking for the LLP registration. Let’s take a look at the list of documents; you have to submit for the LLP registration-
Identity proof of the partners
You have to submit the PAN for Indian nationals and Notarised copy of passport for foreign nationals as the identity proof of the Partners.
Address proof of the partners
You need to provide the passport, drivers license, Aadhar, Bank statement or Electricity bill. And these documents must not be older than the last two months.
Proof of business place
You will be asked to submit the rental agreement or sale deed, a copy of an electricity bill, property tax receipt as a proof of business place. You have to submit the NOC if you have a rented business place
Also, Read our Article: Key Highlights of Limited Liability Partnership
Benefits of Incorporation of LLP under Companies Act 2013
If you are planning to start your own LLP form, then there are certain benefits that you will be able to enjoy over other forms of businesses available in the market-
The contribution of the partners
Unlike other forms of companies or partnerships, LLP doesn’t require the members to have a pre-defined amount of money for the investment. So, there is no minimum limit set for the contribution made by the partners to start the LLP partnership.
And the contribution made by the partners can be any of these; tangible, movable or immovable or intangible property or other benefits of the LLP.
Numbers of owners involved in the LLP partnership firm
For starting the LLP firm, there is a need of at least 2 members, while there is no limit on the maximum number of partners to be involved in the firm. While if we look at the private limited companies, they have a limit of 200 members
Cost of registration
In comparison to public limited companies or private limited companies, Limited liability partnership firms can set up at much lower prices. Swarit advisors provide one of the best rates in the market to open an LLP firm.
Auditing compliance benefit
LLP firms do not require the regular auditing of the accounts, while if we look at the compliances to be followed by private limited companies and public limited companies, these types of companies need to maintain the properly audited accounts.
LLP firms only need to get a tax audit done in the following cases-
- If the contribution made by the employees is more than Rs. 25 lakhs
- If the annual turnover of the LLP is more than Rs. 40 lakhs
The operation of business doesn’t depend upon the partners’ availability; the firm keeps on existing or running even if any of the partners withdraw its name from the firm or if the member is no more due to any unfortunate circumstances.
Few things to Learn from Prior Customer Experience
- One of our clients called us, he was running out of time and had a very busy schedule; so he asked whether he needs to be present at the time of registration or not?
Let us inform you that the registration process of LLP is totally online, there is no need of you to be present physically at our office or ministry of corporate affairs. Once you place the order with swarit advisors, everything will be taken care of by our team. We will send our team member to you to collect the documents and signature.
- One of the most commonly asked question by most of our clients is that, who all they can involve in the Limited liability partnership firm as a partner?
If you are planning to start a Limited liability partnership, and you are having a little hard time in deciding whom to approach as a partner of an LLP firm. Then don’t you worry at all, because, for the incorporation of the LLP firm, you can include any individual, company or foreign national as a partner.
- When people start an LLP firm, they think that they may need to hire a full-time CA or CS to adhere compliances of the firm.
There is no need to hire a full-time CA or CS. Swarit advisors offer packages regarding the annual compliances, in which our team will guide and advise you for all the annual compliances.
- Some of the people keep on delaying the registration of the LLP firms, thinking that it is going to take a lot of time or considering it a lengthy process.
We, at swarit advisors, has a team of experienced members who deal in the same day in and day out And we try to make sure that you receive your certificate of LLP registration within a period of 10 business days.
If you are one of these, then don’t give it a second thought, pick up a phone and contact Swarit advisors. We are always here to help you.
Also, Read our Article: Major Differences Between Sole Proprietorship Vs LLP in India.