5 Easy Steps To Incorporate your LLP Business

LLP incorporation has become very easy, especially with the advent of LLP (2nd amendment) rules, 2018. Submission of various forms for LLP incorporation has been done away with. The new amendment includes relevant updated rules and e-form layouts regarding incorporation that have been notified on 18th of September 2018 and has come into place from 2nd of October, 2018. 

With the help of this blog, you can understand the easy steps for online LLP registration which can be done with required documents as per the LLP act, 2008.

The process to incorporate LLP.

If you are a new user, then you will have to register yourself on the MCA portal.

Step one – availability of the name and its approval.

Once you have a plan for LLP incorporation, you will have to get the name’s approval from the registrar of companies (RoC) and LLP. Choose the apt name and apply for its reservation on the MCA portal. MCA offers a web service titled RUN-LLP (reserve unique name – limited liability partnership) service to reserve the LLP’s name.

Apply via RUN-LLP service, where you have to fill in mandatory details as given below;

  1. New incorporation/conversion – where you intend to incorporate a new LLP or convert an entity into LLP or an unlisted public company or changing a private limited company registration into LLP.
  2. LLPIN – only applies when you want to change the existing LLP’s name.
  3. Proposed LLP’s names – your chosen names for the new LLP incorporation (maximum 2 at a time).
  4. Comment section – give a brief (one-line) about the proposed LLP’s object.
  5. Select the file tab – if there is a change in the existing LLP name or, in case of conversion then link the board resolution and other relevant documents.

Factors to keep in mind.

– Proposed LLP’s names should be unique and peculiar and not identical to existing LLP names or registered trademarks.

– You are allowed to apply for 2 names as of your choice for the first time via the RUN-LLP web service. If they are not available, you will get a chance to refile and apply freshly for another 2 names.

– You can skip reservation of name via RUN-LLP web service and apply directly via FiLLiP (form for incorporation of LLP), only if you have chosen a name for the proposed LLP that is sui generis, peculiar and not identical to other LLP’s names.

– Once RoC approves the application, the same is reserved for a maximum number of 20 days; after this time, the same would be taken aback, and you require to file it freshly.

Step twopreparing documents.

Once your name gets approved, the same will be reserved for twenty days. These days, you require to submit LLP incorporation forms such as FiLLiP and form attachments to FiLLiP with the MCA portal and RoC.

Now, you will have to prepare documents for submission to RoC as given below;

  1. Registered office’s address proof – lease agreement/rent agreement/conveyance deed.
  2. NOC from the owner of the premises.
  3. Registered office address’s utility bills such as water bill/electricity bill/ telephone bills (not older than 2 months).
  4. A sheet of subscribers.
  5. Resolution’s copy on the body corporate letterhead – if a body corporate becomes associates or their nominees as designated partners.
  6. Regulatory authority’s principal approval – if the chosen name includes any words requiring approval of regulated authorities.
  7. LLP’s details or company’s in which partners/designated partner is director/partner.
  8. Partners’ and designated partners’ KYC – Aadhar card and PAN.
  9. All partners/designated partners’ ID proof and residential proof.
  10. Form 9 – designated partners’ consent to act from all the proposed partners of the LLP.
  11. All partners/designated partners’ digital signature certificate (DSC).

NOTE – all the above-mentioned documents have to be in PDF formats.

Step three – preparing forms.

Now, you have to prepare LLP incorporation forms such as FiLLiP and form addendum to FiLLiP. You can download the forms from the MCA portal and enter the relevant details. Here are the details that you need to fill in;

FiLLiP.

It includes the proposed LLP’s basic details, its designated partners, and business to be conducted by the LLP. Here are the succinct particulars of the FiLLiP form that needs to be filled in;

– RUN-LLP’s SRN, if RoC has approved the name; if not, then you can apply for the name in FiLLiP.

– LLP’s registered address’s details, mobile number and Email ID of the LLP.

– Business activities’ brief details to be conducted by the LLP on incorporation.

– Main division of industrial activity of the LLP according to NIC-2004.

– Main division of industrial activity’s brief description.

– State the number of partners/designated partners, including nominees of the body corporate of the proposed LLP having DIN and not having DPIN/DIN.

– Monetary value in the Rs, contributed by all the partners of the proposed LLP.

– Choose yes or no whether an addendum to FiLLiP is needed to be submitted.

– Link the documents as stated above in PDF format.

– Enter the declaration by one of the partners/designated partners of the proposed LLP.

NOTE – addendum to FiLLiP has to be needed to be submitted in the following scenario;

  • If the number of designated partners/partners is more than the maximum numbers allowed in the form, such as 200.

– In case designated partners/partners’ details cannot be presented in this form due to the attachments’ size.

Step four – forms certification.

Both eform FiLLiP and addendum to FiLLiP (if needed) are needed to be certified through practicing CA or advocate or practicing CS or practicing CMA. Once the DSC of one of the partners/designated partners is affixed and forms are certified through an advocate or practicing CS, CS and CMA, the forms must be pre-verified for the successful filing.

Step five – forms submission.

Once both of the above-mentioned forms are pre-verified, they are to be uploaded on the MCA portal. Payment of fee has to be made via online mode or challan (offline mode). RoC will check and verify all the forms and their compliances. Once he/she is satisfied with it, e-forms will get approved, and LLP will get incorporated.

NOTE – check out the applicable fee on the MCA fee calculator before applying for name reservation and submission of forms.