Incorporating a Limited Liability Partnership (LLP) in India is a relatively simple and straightforward process. However, there are several steps that need to be followed and various documents that need to be submitted to the Registrar of Companies (ROC). Learn how to incorporate llp.
Step 1: Obtain Digital Signature Certificates (DSC) and Director Identification Number (DIN) The first step in incorporating an LLP in India is to obtain Digital Signature Certificates (DSC) for the proposed partners and a Director Identification Number (DIN) for each proposed partner. DSC is an electronic certificate that is used to secure online transactions and is used to digitally sign the LLP agreement. DIN is a unique identification number that is required for every director of a company, including LLPs.
Step 2: Name Approval The next step is to apply for name approval. The proposed name of the LLP must be unique and should not be similar to any existing company or LLP. The name approval application can be filed online through the Ministry of Corporate Affairs (MCA) website.
Step 3: Drafting of LLP Agreement The LLP agreement is a legal document that sets out the rights and responsibilities of the partners, including their capital contributions, profit and loss sharing ratios, and management responsibilities. It should be drafted by the partners and should be signed by all the partners with the DSC.
Step 4: Filing of Incorporation Documents The following documents need to be filed with the ROC:
- LLP agreement
- Form 1 (Incorporation Form)
- Form 2 (Statement of Nominal Capital and Composition of LLP)
- Form 3 (Details of Partners)
- Form 4 (Particulars of the Partners)
- Form 18 (Notice of Appointment of Partners)
Step 5: Obtain PAN and TAN The LLP must apply for a Permanent Account Number (PAN) and a Tax Deduction Account Number (TAN) from the Income Tax Department.
Step 6: Obtain GST registration If the LLP is engaged in taxable activities, it must register for GST with the GST department.
Step 7: Obtain other licenses and registrations The LLP may also need to obtain other licenses and registrations, such as FSSAI, Shops & Establishment, etc. depending on the nature of business.
Incorporating a Limited Liability Partnership (LLP) in India is a relatively simple process, but it requires the completion of several steps and the submission of various documents to the Registrar of Companies (ROC). The process starts with obtaining Digital Signature Certificates (DSC) and Director Identification Number (DIN) for the proposed partners, followed by name approval, drafting of LLP agreement, filing of incorporation documents, obtaining PAN and TAN, GST registration and other licenses and registrations if required. It is important to consult with legal and financial professionals before making a final decision.