Limited Liability Partnership (LLP) came into existence in 2010 after the Limited Liability Partnership Act, 2008 passed. LLP refers to a partnership firm in which liabilities are limited for each partner.
Why LLP registration?
- All the partners of LLP can directly manage the operations of the LLP business.
- All the partners stand equally liable for the debts of the LLP.
- The personal assets of a partner are separate from liability in LLP.
LLP Registration Process:
1. Digital Signature Certification
The first step of LLP Registration is Digital Signature Certification. Each partner needs to provide a digital signature for the online application filed with the Ministry Of Corporate affairs. The 2 years valid DSC requires a PAN card, address proof, and Passport size photo.
2. Approval of Name
The applicants can apply for two names of LLP by filling an online form named RUN-LLP. It may happen that both of the options got rejected. In that scenario, they can resubmit the form again. But if it gets approved, the name remains valid for 90 days from the date it got approved.
3. Form FiLLiP Application
In this step, the filling of the Form FiLLiP application which is used for incorporation of the LLP.
A maximum of 2 designated partners can apply for DPIN, if the partners who are appointed as a designated partner does not have a DPIN on DIN & fill up this application at a time and hold DIN. You need to attach the subscriber’s sheet, consent letter & proof of office address. Their digital signature and certification of CA/CS/CWA are mandatory. Form has to be submitted to ROC online after the payment of prescribed fees.
4. Approval and Rejection
In this step of LLP Registration, two situations may arise:
● Approval of LLP application
The partners will be handed over a Certificate of Incorporation and DIN. You will become the authorized owner of the Limited Liability Partnership Identification Number.
● Resubmission of LLP application
The applicant will have to resubmit the application after correcting the discrepancies intimated by the department within 15 days of intimation.
1. PAN Application
The partners need to apply for PAN separately by filling form 49A to the Income Tax Department. However, both the option of online and offline applications is available. The certificate of Incorporation needed to show as proof.
2. TAN Application (Tax Deduction and Collection Account Number)
The partners are now needed to fill-up the form 49B either online or offline to apply for TAN.
3. LLP Agreement
This step includes the following:
- Name of business, its place, the objective of incorporation is primarily taken care of.
- Duties of the partner, their rights, capital, and profit-sharing ration should also be considered sincerely.
- The agreement must be filed within 30 days of incorporation.
- The LLP partners carefully go through and agree on each clause.
- After making the payment of stamp duty the agreement gets stamped.
- The agreement gets attested by the signature of two witnesses.
4. GST Registration
GST registration is crucial if LLP is meant to enter in Inter-state transactions. No matter whether you are a Small or Medium business owner, LLP registration in Mumbai India is professionally handled by the expertise of MyTaxAdvisor.