In India, Limited Liability Partnership (LLP) formation is governed by the Limited Liability Partnership Act, 2008. Here are the general steps involved in forming an LLP:
Obtain Digital Signature Certificate (DSC): The first step is to obtain a DSC for the proposed designated partners of the LLP. A DSC is an electronic signature that is used to sign the digital documents required for LLP registration.
Obtain Director Identification Number (DIN): The proposed designated partners of the LLP need to obtain a DIN from the Ministry of Corporate Affairs (MCA). This is a unique identification number that is required for all designated partners of an LLP.
Choose a name for the LLP: The next step is to choose a unique name for the LLP. The name should not be similar to any existing LLP or trademark.
File an application for name reservation: The LLP needs to file an application for name reservation with the MCA. The application should include the proposed name of the LLP and the main objects of the LLP.
Draft LLP Agreement: The LLP needs to draft its LLP Agreement, which includes the rules and regulations governing the operations of the LLP.
File incorporation documents: Once the name is approved and the LLP Agreement is drafted, the LLP needs to file its incorporation documents with the Registrar of LLPs (RoLLP). The incorporation documents include the LLP Agreement, consent of designated partners, address proof, and other required documents.
Obtain Certificate of Incorporation: After the RoLLP verifies and approves the incorporation documents, the LLP will be issued a Certificate of Incorporation. This certifies that the LLP is now registered and incorporated under the Limited Liability Partnership Act, 2008.
The fees for LLP formation vary depending on the amount of authorized capital and the state in which the LLP is registered. However, excluding the state stamp duty, the approximate fees for LLP formation range from INR 7,000 to INR 8,000.
In summary, forming an LLP involves obtaining a DSC and DIN, choosing a unique name, filing an application for name reservation, drafting the LLP Agreement, filing the incorporation documents with the RoLLP, and obtaining the Certificate of Incorporation. It is important to follow the process carefully and comply with all legal requirements to ensure a smooth and successful LLP formation.