In response to the second amendment to the Limited Liability Partnership (Second Amendment) Rules, 2022, the Ministry of Corporate Affairs (MCA) has announced that LLP incorporation will be done online, like e-form SPICE+. Electronic filings of the incorporation document should be made with the Registrar in the form FaiLLiP (Form for incorporation of Limited Liability Partnership) with the Registrar responsible for the registered office. This article explains the steps, requirements, and key changes involved in registering an LLP online, making it easier for businesses to establish themselves.
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How Do I Get LLP Registration
A Limited Liability Partnership is a form of business organization that combines the features of a corporation and a partnership. This structure combines the benefits of a corporation and a partnership. The low registration fees and ease of maintaining an LLP make it a popular choice for small businesses in India.
Second Amendment to Limited Liability Partnership Rules, 2022:
Since they were declared on the 04th March 2022, LLP (Second Amendment) Rules, 2022 have undergone a few important changes. The following changes have been made:
- It is possible to have up to five designated partners at the time of incorporation (without DIN numbers).
- A PAN and TAN will be assigned during the incorporation or registration process.
- The incorporation of an LLP is now done online, just as it is with SPICE+ in case of company incorporation.
- It is also mandatory to disclose contingent liabilities on Form 8 (Statement of Solvency and Annual Return).
- To ensure the integrity of LLP documents, all forms, including Form 9 – Consent of Partners, will be web-based and require digital signatures.
How to incorporate LLP: A Step-By-Step Guide
1. Name Reservation:
The first step in incorporating an LLP is to reserve the name. The applicant must fill out E-Form 1, for determining availability and reserving a name.
2. Incorporate A Limited Liability Partnership (LLP)
Upon reserving a name, the user must file FiLLiP to incorporate a Limited Liability Partnership (LLP). There are three parts to the FiLLiP, including the name of the LLP, the details of the partners/designated partners, as well as the consent of the partners/designated partners to act as partners/ designated partners.
3. An Agreement To Form A Limited Liability Partnership
An LLP Agreement must be executed in compliance with Section 23 of the Act and filed in E-Form 3 within 30 days of the LLP’s incorporation.
Web-Based Process For Incorporating LLPs: FiLLiP Form
In accordance with the Limited Liability Partnership (Second Amendment) Rules, 2022, the LLP Incorporation (FiLLiP Form) is now web-based.
To reserve a name, incorporate an LLP under FiLLiP, and/or form a new LLP under FiLLiP, an application for a DIN or DPIN is necessary.
The Form must include all supporting documents, including details of designated partners, partners, etc. A limited liability partnership is registered and an LLPIN is assigned after it has been processed and found complete.
Furthermore, DINs/DPINs must be issued to proposed designated partners/nominations for designated partners without valid DINs/DPINs.
LLPs incorporating using this integrated form are limited to allocating DIN/DPIN to a maximum of five designated partners.
LLP Registration Documents:
Documents required with the FiLLiP Form include:
- For the appointment of a body corporate as a partner, a copy of the resolution on the letterhead of the body corporate should be submitted.
- Having the name and address of the nominee/designated partner nominated to represent that body corporate on its letterhead is the authorization/resolution of that body corporate.
- In the case of a Limited Liability Partnership, proof of the address of the registered office is required.
- Subscriber consent form.
- Regulatory authorities must approve the proposed name in principle before the attachment can be submitted.
- If the partner/designated partner is a director/partner in an LLP or company, please provide details.
- Owners or applicants of trademarks must approve trademark applications for registration.
- Any words or expressions that require approval from the central government should be included in the proposed name.
- It is necessary for the competent authority to approve collaborations and connections with foreign countries or places.
- Identification and address copies of the applicant are required.
- Copy of the Board Resolution of the existing company or consent of the existing Limited Liability Partnership is proof of no objection.
Conclusion: The transition to online LLP registration in India streamlines the incorporation process, offering convenience and efficiency to entrepreneurs. By adhering to the updated regulations and following the prescribed steps, businesses can navigate the LLP registration process smoothly and establish their legal entity with ease.
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