“It is not only one person’s work; it’s really a partnership and collaboration during all these years” — Christo.
Partnership is an agreement between two or more person who come together to carry forward certain objectives or certain goal which the can achieve together. It is a type of business organization which is governed by the PARTNERSHIP ACT 1932 where is any partner want to start any this kind of business than they will governed by this Act and all the Laws will be held upon them and in this the liabilities of the partner are unlimited which is a short coming of this Act in a long run to each of the partners as in short we can say that fault of one and all will suffer for it.
Partner act as a mutual agent for the entire partner i.e. “One for all and All for one” . Thus it serve as a one of the major disadvantage of the Act so the formation of partnership become less so in order to cope up with this problem government took the great initiative to promote partnership.
So, in order to reduce the disadvantage of the partnership and to encourage the benefit of the company a new thing has been brought up in the year 2008 which is known as Limited Liability Partnership Act 2008. This Act has been brought forward to reduce the disadvantage of the partnership, some of the major problem which are repaired in this Act are
- LIABLITY OF THE PARTNER: – in partnership we have seen that the liabilities of the partner are unlimited but in case of LLP liability of the partner are limited to an extent which clearly says that in case of any dispute with any one the liability of each partner are limited and each partner has to bare the risk for their fault.
- REGISTRATION PROCCESS: – In the Partnership Act 1932 there is no compulsion over the partner to have written registration but with the introduction of Limited Liability Act 2008 paved the way which made it compulsory to make the registration of the Limited Liability Partner.
- COMPANY FEATURES: – As earlier said that the LLP contain the advantages of the company so some of the major advantages of company are perpetual succession, created by law, separate legal entity and common seal where as in case of partnership this was not talked about.
REGISTRATION PROCESS OF THE LIMITED LIABLITY PARTNERHIP(LLP)
As discussed above that is somewhat similar to the registration process of the company so the registration processes are as follow: –
STEP I
DIN NUMBER
The first step towards registration of LIMITED LIABLITY PARTNER is DIN NUMBER which stand for Director Identification Number for the formation of the private limited company which requires minimum two partners to start a Limited Liability Partnership and each partner has give there DIN NUMBER being it Foreign national or native.
For the acquisition, some will require an Aadhaar Help Spot of a DIN number and one must give the following document which is required by each partner to provide to get DIN number are:-
- Copy of a PAN Card
- Address proof (which could be a copy of a Adhar card , Voter ID, Driving License or pass port)
- Pass port size photograph.
- Email Address
- Mobile Number
- Annexure which must be verified by the signature
Each of this document must be attested by the individual.{In case of foreign national there passport is mandatory and the address proof must not be older than one year and both the document must be notarize by the consulate of Indian embassy}
After these thing will be submitted than each partner will allotted there DIN number.
STEP 2
Application for Digital Signature Certificate (DSC)
Both the partner need to apply for the digital signature with that they too have to attach the various document i.e. identity proof and Address proof which should be same as of DIN . Partner has to put the photograph and has to make signature across the photo and stick on the form for digital signature certificate.
STEP 3
APPLICATION FOR NAME APPROVAL
For the name approval one has to fill the e-form1 available at www.llp.gov.in for the enquiry about the name availability about the firm. In addition to it partner has to mention its own name preference about the name which may be considered if it fulfill the Guidelines of Ministry of Corporate Affair.
STEP 4
GOVERNMENT VERIFICATION OF FORM AND DOCUMENT SUBMITTED
After the form 1is submitted than it is put for the verification process in depth by the register of the partnership firm and if any correction is required than he will inform about the same.
STEP 5
FILLING THE SUBSCRIPTION STATEMENT AND INCORPORATION DOCUMENT
Soon after the Form 2 has been verified than partner has to fill the e- Form 2 i.e. SUBSCRIPTION STATEMENT AND INCORPORATION DOCUMENT which would attach two documents.
- Address Proof
- Subscription Statement and Incorporation Document (which must be signed by both the partners and professionals shall witness)
STEP 6
CERTIFICATE OF INCORPORATION
When the registrar is satisfied from all the documents and clearly verified the entire documents than he has to send the soft copy of Certificate of Incorporation via mail and hard copy via post.
STEP 7
DRAFTING OF LLP AGREEMENT
LLP Agreement has to be drafted and printed on the stamp paper {Stamp duties must be applicable as per the states to state} and need to be signed by both the partners in the presence of two witness.
STEP 8
FILLING UP OF LLP AGEEMENT
After receiving the Certificate of Incorporation within 30 days partner has to fill its LLP Agreement which is Form 3.
STEP 9
APPROVAL OF FORM 3
Last step towards the registration of LLP is approval of form3 if the registrar is satisfied from all the documents and every information than he will approve the form. From then partner can start their work legally as there firm got legally existence.
These are the few steps that a LLP should follow for the setting up and registration.
Author: This blog is written by Mr. Aman Verma, a passionate blogger & intern at Aapka Consultant.
OUR SERVICES
Company Registration I Trademark I Copyright I Patent I GST I MSME
ISO Certification I Website/App Policy I Legal Documentation
Annual Compliance I Connect Consultant
Visit: Aapka Consultant to get Online Services of CA CS & Lawyers.
