Your guide in registering your Limited Liability Partnership- Is LLP better than Conventional Partnership?

Limited Liability Partnership or better known as LLPs, were introduced 2008 and have quickly become a common structure for businesses today. You need at least 2 partners for registering an LLP in India.

Steps for registering an Limited Liability Partnership in India

Step1 – Applying for DIN

Partners need to apply for DIN which is mandatory for registering an LLP. Partners must have a valid Address Proof, Pan Card and other relevant information such as Education qualification, etc.

Step 2 – Applying for digital certificate

Partners need to apply for Digital Signature Certification. It is needed while filing several forms and it also required for filings ROC Return in the future together with several other things.

Step 3 – Application for the name

In LLP Registration process, the partners need to apply for a Name Application in their respective ROC via MCA Portal. The ROC will approve the allotted name after due verification and checking that there are no other registered companies or trademarks.

Step 4 – ROC Fillings

For LLP Registration, partners need to file few forms on the MCA Portal after verification of name is completed.

Step 5 – Issue of Certificate of incorporation

After Verification of the forms, ROC \will issue the Certificate of Incorporation which is the proof of LLP registration. After receiving the Incorporation Certificate, the partners are required to open a current bank account in the name of their LLP.

Step 6 – Drafting and Filling of LLP agreement

On Receiving the Certificate of Incorporation, the partners have to file the LLP Agreement with their respective ROC Office via MCA Portal. The LLP Agreement is similar to a partnership firm agreement which contains detail regarding the partners.

Choosing LLP over traditional partnership

• The key benefit of an LLP over the traditional Partnership is that it restricts the liabilities of the partners to the extent of their contributions in the business and provides protection to each partner from the misdeeds, negligence or incompetence of other partners.
• One of the other distinguishing and important features of LLP is that it has perpetual succession, i.e. the firm exists even there is the host of changes in its constitution.
• The other benefit which an LLP offers is that it can invest in the shares of another LLPs or companies in its own name.
• Precisely, a Limited Liability Partnership offers more advantages than a traditional partnership. In fact, it is not wrong to say that LLPs offers most of the benefits enjoyed by a Private Limited Company with added benefits of the traditional partnership.

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