LLP is one of the latest forms of corporate in India passed under the LLP act 2008. In short span of time it has gained an immense popularity and has turned out as one of the favorable type of companies in India. With minimal capital and with limited liability partners can start with their business in India. No boundaries in terms of minimum capital maximum partners and no severe restrictions from the government. It is one of the unique and easiest modes of business formation in India under legal wise. As in these days of severe corporate competition; LLP company in India is one of the finest ways of carrying business that involves very less chances of getting lose and will give a best chance to all partners to prove their business ethics.
- To form a limited liability partnership one needs to have minimum two designated partners who should have DPIN number likewise in case of DIN for the company incorporation.
- Secondly; there should be at-least two partners while applying for LLP registration in India; whereas for maximum partners there is no limit in LLP.
- Designated partners have more roles and responsibilities as compare to those of ordinary members like they are the responsible for accurate filing of LLP affairs and need to update with legal status. It is their duty to re-check and verify while complying with each and every act of LLP.
- It is not mandatory but if possible get prepare partner's agreement in order to avoid any of the disputes. This agreement includes
- Detail information about the partners.
- Details about capital introduced by each of the partner.
- Profit and loss ratio being shared among the partners.
- Roles and Responsibilities of each partner in respect of running their business.
- How to add new partner and what on the death of any of the partner.
- This LLP partnership agreement need to prepare by reputed solicitor and duly signed by all the partners and designated partners and also by the same solicitor.
Procedure for Registering a Limited Liability PartnershipIf we concern about steps and procedure for registering a limited liability partnership company then we must say that there are several rules and guidelines that one need to follow for the same.
- First apply for DPIN Numbers where it is mandatory for the LLP that it's at-least two designated partner should have DPIN number.
- Fill Form 1 A for the approval of company's name where the application is need to make to respective ROC.
- After this; file an application for registration of LLP in India while submitting the form 1, form 2, form 3 and form 4.
- Finally apply for the PAN and TAN for the registered LLP firm.