The concept of an LLP was introduced in 2009 as a structured business model. It can be defined as a separate legal entity from the partnership entity. Where business assets are separate from the personal assets of the partners. The personal assets of partners are not put at risk. In case the business incurs losses, as the maximum liability of every partner is defined by his share capital in the entity.
Apply for DSC and DIN
The first step is to obtain DSC of the desired partners of the Limited Liability Partnership. The law also requires that all directors file for a DIN number.
Application for name approval
The proposed business should choose a unique name related to their business and the availability of the name should be checked with MCA (Ministry pf Corporate Affairs) through RUN (Reserve Unique Name) service. The Name should not match with any other existing company or trademark in India.
LLP Agreement
LLP agreement is very crucial in a limited liability partnership as it determines the mutual rights and duties amongst the partners, and between the LLP and the partners. The partners enter into the LLP agreement upon the LLP registration by filing form 3 online on the MCA portal. This procedure has to be done within 30 days of the date of incorporation.
LLP Incorporation Certificate
Once the registrar approves your MOA and AOA, you’re steps closer to getting your LLP registered. The next step is to get the LLP Incorporation Certificate. You can do by submitting all documents to the registrar. The time frame is between 2- 12 days. Once you get your LLP Incorporation Certificate, you’re ready to go.
Apply for PAN & TAN & Bank Account
As soon as you get the incorporation certificate, you need to apply for your company PAN & TAN with the NSDL.
