What is the LLP registration?
LLP means nothing but a Limited Liability Partnership in which all or a few partners have limited liability. Any partner is not responsible for another partner's negligence as they have limited liability.
The LLP Act, 2008 says that there should be a minimum of two partners from which one should be a resident of India.
LLP does not cease if there is the company is carried by only one partner. If the company sustains for more than six months, the liability will be on the lone partner. LLP type of companies is beneficiary for small and medium enterprises. LLPs are recommended for gaining profits in business because not an individual but a limited liability partnership itself is liable for the business's debts.
There is a step-wise procedure for LLP registration in Mumbai that includes documents and forms to be filled for LLP registration.
Step 1: Digital Signature Certificate
Every Form filed for LLP registration online needs a digital signature by an LLP or designated applicant's partners. The DSC is valid for two years for the selected partners who have signed under the LLP. The online application requires a passport size photograph and address proof.
Step 2: Obtain LLP Name
The applicant or partner of the LLP firm needs to reserve a unique name. It is called RUN-LLP, a new version of the LLP Form 1. It is a simplified version that can be obtained with two names mentioning its preference. If MCA approves none, you need to resubmit the RUN-LLP Form. And if the name is allotted, it is reserved for 90 days from then.
Step 3: Incorporation of LLP, including DIN application
There is a significant change in the process during this step. The previous version of the application was to be filed in LLP form 2, and now it has been replaced with the Form of incorporation of LLP. The DIN allotment application's integration is essential, wherein the DIN application for a maximum of two designated partners should hold DIN. The other partners can be added later. If you have missed the RUN-LLP to register the name, you can choose to reserve in this Form.
This application is attached with a set of documents that includes registered office address proof, subscriber's sheet, and digitally signed e-form by the partners through their DSC and by practising professional, i.e. CA/CS/CWA.
Step 4: LLP Application Process
The application is processed for approval once all the documents are submitted. If the CRC needs further documents, they may call for re-submission within 15 days. Once the approval is made to LLP register online, the COI will be issued in form 16 with DIN for designated partners. The certificate of incorporation will also consist of LLPIN- an identification number for the company.
Step 5: Apply for PAN and TAN
Apply for a PAN card in the company's name online or offline by the Income Tax Department. You need to fill the form 49A and submit it along with the certificate of incorporation as proof. Similarly, for applying a Tan, fill the Form 49B.
Step 7: Prepare LLP Agreement
The most crucial step of the LLP incorporation is preparing an LLP agreement. Numerous points are considered, like the name, business objective, place of business, etc. All the crucial issues that the partners agreed upon the need to be drafted in the agreement with stamp duty and notarized in the presence of two witnesses.
Step 8: GST registration for LLP
GST registration is the final step and mandatory for an LLP. It is advisable to get GST registration for incurring expenses or buying goods.
Along with LLP registration, we also provide services for trademark registration in Ahmedabad and Mumbai. Get in touch with our trademark registration consultants today.