The incorporation of a Limited Liability Partnership in India is governed by the Limited Liability Partnership Act, 2012.
Under the Act, necessary guidelines to incorporate a Limited Liability Partnership have been stipulated for.
A Limited Liability Partnership (LLP) is a new corporate structure that combines the flexibility of a partnership and the advantages of limited liability of a company at a low compliance cost. In other words, it is an alternative corporate business vehicle that provides the benefits of limited liability of a company, but allows its members the flexibility of organising their internal management on the basis of a mutually arrived agreement, as is the case in a partnership firm.
The process of incorporation of a Limited Liability Partnership in India generally takes around 14 days from the date of filing the documents.
The first step in setting up a Limited Liability Partnership is registering yourself on the official website(www.llp.gov.in.)After deciding on formation of Limited Liability Partnership and partners to act designated partner all designated partners of the proposed LLP shall obtain “Designated Partner Identification Number (DPIN)” by filing an application individually online.
Step 1: Preparation of application by filling out (E-Form-7)
The E-From-7 requires information on
- Information for the identification of the of applicant, i.e :- Name and Address.
- Name of Body Corporate.
- Address of the Registered Office along with ISO country code.
- Phone Number and Email ID.
- Applicant’s Father’s/ Husband’s name.
- Nationality.
- Date of Birth
- Gender
- Place of Birth
- Income Tax Permanent Account Number
- Voter’s Identity card number
- Passport Number
- Driving License Number
- Permanent Residential Address
- One Proof of Identity must be attached out of the given options: Passport Election (voter identity) card, Driving license, Income-tax, PAN card.
- One Proof of Residence must be attached out of the given options: Passport Election (voter identity) card, Ration card Driving license, Electricity bill, Telephone bill, Bank account statement.
If any other documents apart from the mentioned have been attached for identity or address proof it has to be mentioned on the form itself.
Step 2 : Taking the print out and attaching relevant documents.
After filling the mandatory details in the Form 7 online Provisional DPIN(Designated Partners Identification Number) generated immediately.
After generation of Provisional DPIN the applicant must take take the print out of the application form, affix a latest passport size photograph and get it attested/certified for submission physically along with documentary evidences for proof of identify and proof of residence with the Registrar LLP.
Provisional DPIN generated online by the applicant will remain valid for a period of sixty days from the date on which it was generated.
Ensure that the application form, passport size photograph, and the documentary evidences for proof of identity and proof of residence are duly attested by notary public who shall also write his name and registration number.
Step 3: Paying Fee
Pay filing fee of Rs.100 online through credit card (master/visa).
Step 4 : Sending the Documents.
Deliver the printed and signed application form, along with the prescribed documents as prescribed in the application by hand/courier/registered post to the Office of Registrar, Ministry of Corporate Affairs, 3rd Floor, “Paryavaran Bhawan”, CGO Complex, Lodhi Road, New Delhi-110003.
Step 5 : Approval
MCA will approve the DPIN within a Period of 7 days from the date of receipt of physical application.
Step 6 : Intimation of DPIN to LLP.
Every designated partner shall intimate his DPIN in (E Form 9) to the LLP and the LLP shall intimate such DPIN to Registrar of Companies in (E Form 4).
NOTE
Reasons for rejections
Applicant’s name and father’s name mentioned in abbreviated form. - The Name should be expanded even if the ID proof contains the name in abbreviated form.
Mismatch in the Name and Father’s Name in DPIN form with the ID (Identity) proof enclosed. - Any mismatch in Name, including spelling mistake, may lead to rejection of application. Minor spelling deviations in the father’s name may be accepted, if such deviations do not materially impact the name.
Prefixes like Mr. / Ms. / Kumari / Shri etc. used in the applicant’s name.
Residence proofs like: Bank Statements, Electricity Bill, Telephone Bill, Utility bills etc. submitted are older than 2 months of submitting the application for verification OR such documents are in the name of some other person, for example father or spouse.
The supporting documents are not duly attested i.e. Name, Designation, Membership/ Practicing certificate number etc. are not clearly indicated. – If the seal/ stamp does not contain membership/ practicing certificate number, same may be recorded by hand.
Passport / Driving License / Identity proofs etc attached are expired. – Only such documents which are currently valid should be attached.
