Outlook of Limited Liability Partnership

Limited Liability Partnerships (LLPs) are a type of partnership organisation that entrepreneurs prefer the most. It is the simplest type of company structure with the advantage of restricted liability. LLP registration gives opportunity to the partners to shape a business where the responsibility of each member is restricted to the sum of money they contribute into the business. The registration of a Limited Liability Partnership firm also has in its criteria that in case of failure of partnership, creditors will not be able to seize the partners' personal assets or money.

Information of Limited Liability Partnership

Limited Liability Partnerships, are a sort of business type that provides additional benefits over a Partnership Firm. It offers its partners limited responsibility with just a little amount. Furthermore, the firm's partners might organise its internal structure in the manner of a partnership. So, LLP is a different legitimate entity from its part that has the ability to expand its firm or assets while limiting the partners' liability. As a result, a Limited Liability Partnership (LLP) is a combination of a partnership business and a company. Advantages of Limited Liability Partnership There are numerous benefits of Limited Liabilities Partnership. Some of them are stated below-

1. Sharing of Profit- A limited liability partnership's profit is shared equally among all of its partners. A philanthropic purpose cannot be integrated into an LLP registration. Its goal is to conduct business activities in order to make a profit.

2. Partakes in Corporate Body Status- A firm is a corporate body under LLP registration, according to Section 3 of the Limited Liability Partnership Act, 2008, which took effect on April 1, 2009. LLPs are exempt from the Indian Partnership Act of 1932.

3. Fast Decisions- All of the partners sign an agreement that defines their roles and responsibilities in the firm, which is printed on stamp paper and signed by all of them. It assists them in their decision-making.

4. Interminable Succession- A Limited Liability Partnership firm has an advantage of unending progression which means it can continue to exist even if one or more of its members dies, retires, or becomes insane.

5. Shares Division- The most significant aspect of an LLP is limited liability, which implies that the partners' personal assets are absolutely protected and will not be utilised to pay the firm's losses or debts. One of the best characteristics is that innocent partners in a Limited Liability Partnership are not responsible for the wrongdoings of another partner.

6. Simpler Conversion- If a Private or Public Limited Company, or also a partnership firm, desires to become a Limited Liability Partnership, they can easily convert according to the applicable act's regulations.

7. Less Credentials- A limited liability partnership (LLP) can be formed with just two participants, one of whom must be an Indian resident. It's authorised partners might be either an individual or a corporation. Furthermore, there is no minimum capital requirement for forming a limited liability partnership.

8. Online E- filing Registration- MCA has made LLP registration simple by making it an online process. On the official MCA portal, the forms and papers are filed electronically. To sign these contracts and paperwork, a designated partner of a limited-liability partnership entity must receive DSC.

9. Easy Management- The business is administered by the partners according to their roles and responsibilities. The assigned partners of the company are answerable for the all lawful compliances.

Documents Required for Registration of Limited Liability Company

Online There are some documents required for Limited Liability Company Registration through online mode. The list is as follows- • Required documents of LLP:

1. Digital Signature Certificate (DSC)- As all the documents will be digitally signed and paperwork will be done digitally and by the concerned signatory, one of the LLP's chosen partners will need to purchase a DSC (digital signature certificate).

2. Office Address Proof- Within 30 days of the LLP's incorporation, office address proof should be given during the process of registration. If the selected registered office is rented, the rent agreement as well as a landlord's NOC (No Objection Certificate) must be supplied. The landlord's permission to the LLP using the location as a "registered office" and conducting business will be evidenced by a No Objection Certificate. Furthermore, any utility bill like an electricity, telephone or gas should be submitted with the application. Those bills must include the full address of the office as well as the name of the owner, and the paper must be legible. • Required documents of Partners:

1. Identify Proof- PAN Card is essential as Identity Proof submission while registering Limited Liability Company.

2. Passport Size Photograph- A photograph (with white background) is required during the time of registration.

3. Address Proof- The partners need to submit any one of Aadhar Card, Voter ID Card, Passport and Driving License as Address Proof. The name and address must be exactly the same as of the PAN Card.

4. Passport (Optional)- Foreign nationals and non-resident Indians must present their passports to become partners in an Indian Limited Liability Partnership. The appropriate authorities in the country of such foreign citizens & NRIs must notarize the passports, and the Indian Embassy in that country can also authorise the documents. They must also provide evidence of address, which might be a bank statement, a driver's licence, a residency card, or any other government-issued identification document that includes the address.

Procedure for Registration of Limited Liability

Partnership Online Limited Liability Partnership (LLP) registration is a simple online process that may be completed in four steps and three steps after incorporation. The following is a series of approaches to form a Limited Liability Partnership:

• Company's Name: Submit an Application for Approval of Name- Reserving a name for the Limited Liability Partnership Company is the first stage in the LLP registration process. To do so, an applicant must submit the LLP-RUN form. The name should be one- of- a- kind and offensive- free. One can do this by using the MCA Portal's free name search feature. The system is very useful, as it generates a list of names that is similar to your company's name. This will assist in deciding on a suitable name. An applicant can submit up to two names, which the registrar of businesses will investigate further. In the event of an objection or rejection, one has 15 days to again submit the form.

1. MCA Website Login- One must register an account to login on MCA Website; however, existing users may use their existing account. After logging in, select the "RUN" option in MCA Service. An applicant will be directed to an online form where they must fill out information that cannot be downloaded.

2. Details Required- You need to give data, for example the type of LLP and the LLPIN (when a current business or company desires to change its name and is using RUN to hold another name for permission), a name suggestion (the Auto Check Facility for it), Comment section (one can place Objection of the proposed LLP and any other relevant information Like TradeMark etc.), Select a document (if any pertinent attachment available).

3. Select PDF File & its submission on MCA- Uploading PDF documents is possible. Following completion of the preceding procedures, the user must submit the Form to the MCA website. 4. Fees Payment and Reservation of Name- In the online form "RUN", it should be noted that there is no opportunity to pay the challan later. As a result, the applicant must pay fees immediately after submitting the application, and the challan will be generated later. Furthermore, the reserved name will be valid for 20 days after the Firm's Name has been approved. [Note- It is important to note that the DSC and DIN are not required for completing the online form. RUN, DSC, and DIN are not necessary for submitting an RUN form for name reservation. Only an MCA portal account is required. Furthermore, in the case of a name reservation, only one resubmission of the application is permitted. In the RUN form, two names can be entered.]

• Incorporation of Firm- One can move forward towards the process of incorporation, after reserving the name under Limited Liability Partnership. The next step will be to fill the Form for incorporation of Limited Liability Partnership (FiLLiP). It must be submitted with the registrar of firms in the state where the registered office is located. According to Annexure "A," the applicant must pay a specific amount of incorporation fees. The authorities will scrutinize all the documents, and if everything checks out, an incorporation certificate will be issued.

Kinds of Forms Required to Fill for Registration of Limited Liability Partnership

1. RUN- LLP: It's the name- registration form.

2. FiLLiP: This form is required for incorporation of Limited Liability Partnership.

3. Form 5: Application for change of name.

4. Form 17: It's an application for change of firm into Limited Liability Partnership.

5. Form 18: It's an application for change of type of Public Or Private Limited Company to Limited Liability Partnership.

Post- Incorporation Requirements

Post- registration compliances are just as crucial as the registration process. Following the formation of the LLP, you must complete post- incorporation compliances that are one-time only. LLP Contract The LLP agreement is a vital document that tells about the rights and responsibilities of all members of the LLP company. It aids in the prevention of future partner problems and disputes, hence promoting peace and prosperity. Within 30 days of LLP formation, it must be filed on the MCA portal. The document must be printed on stamp paper and signed by all of the firm's partners. The stamp paper is worth different amounts in different states. TAN and PAN After the establishment, apply for a PAN and TAN since without them, the company would be unable to open a bank account and conduct further operations. Establish a Bank Account To conduct financial activities, open a bank account in the name of your LLP registration firm once you have received your PAN.

Post- Incorporation Requirements

Post- registration compliances are just as crucial as the registration process. Following the formation of the LLP, you must complete post- incorporation compliances that are one-time only. LLP Contract The LLP agreement is a vital document that tells about the rights and responsibilities of all members of the LLP company. It aids in the prevention of future partner problems and disputes, hence promoting peace and prosperity. Within 30 days of LLP formation, it must be filed on the MCA portal. The document must be printed on stamp paper and signed by all of the firm's partners. The stamp paper is worth different amounts in different states. TAN and PAN After the establishment, apply for a PAN and TAN since without them, the company would be unable to open a bank account and conduct further operations. Establish a Bank Account To conduct financial activities, open a bank account in the name of your LLP registration firm once you have received your PAN.

Frequently Asked Questions

1. Minimum number of how many partners are required to initiate LLP? Minimum number of two partners are required.

2. Can conversion happen from a Partnership Firm to LLP? Yes, both Public and Private Limited Company and also Partnership Firms can get converted into LLP.

3. How many days will it take for registration into an LLP company? It is going to take 10 business days for a company to register as an LLP.

4. What are some important forms to fill up while registering as LLP? Some important forms are RUN-LLP, FiLLiP, Form 5, Form 17 and Form 18.

5. Will the government take any of the assets of the partners if any misfortune happens? No, the government has no right to take any of their personal assets from the partners.