LIMITED LIABILITY PARTNERSHIP (LLP) NEW RULES AND PROCEDURE

LIMITED LIABILITY PARTNERSHIP (LLP) NEW RULES AND PROCEDURE

Limited Liability Partnership (LLP) is a new form of corporate entity; it is a partnership in which partners have limited liabilities. LLP is regulated under Limited Liability Partnership Act, 2008 and registered with Central Government under the Ministry of Corporate Affairs (MCA).

As on 26th January 2018, the application for allotment of Designated Partner Identification Number has been closed due to making amendments in the forms of LLP. But as on 2nd October 2018, the government came up with the new forms and changes in the incorporation procedure of LLP.

  • Before 2nd October 2018 we need to file a separate form i.e. FORM-1 for name reservation in which we can apply six names in one application but now we can apply only two names in one application which is now converted into web-services i.e. RUN-LLP.
  • Earlier after name approval but before incorporation the partners need to take DPIN/DIN but now there is no such provision is applicable. Now those persons can also apply for the LLP registration without having DIN/DPIN because the partners can apply for their DPIN/DIN in the same incorporation form which is now get changed into FiLLiP from FORM-2.
  • Now there is only there step to incorporate an LLP:
  1. Name reservation
  2. Taking DSC (Digital Signature Certificate)
  3. DPIN/DIN and Incorporation of LLP
  • There is not only changes in the incorporation form and process but also get some changes into another form and these are:
  • Addendum to FORM 2 which is for the details given in respect of designated partner and partners of LLP which is not provided in the corresponding form FiLLiP which is now get replaced by the form Addendum FiLLiP. The SRN of Form 1 is substituted with the RUN-LLP SRN.
  • FORM 5 remains the same form only after making a few amendments in it. The SRN of FORM 1 is also allowed to pre-fill in the FORM if it is approved by the MCA before this notification but the FORM 5 still not filed and if the form is filed it will remark as re-submission and the applicant need to file the new forms.
  • FORM 17 is application and statement for conversion of a firm into LLP is also remains the same by making a minor modification in the form.
  • FORM 18 is the application and statement for conversion of a private company/ unlisted public company into LLP, this form also remains the same only a few amendments are made in the form.

 NEW RULES FOR FILING LLP FORMS ARE:

  • Maximum two DINs/DPINs is allocated through FiLLiP
  • In case none of the Designated Partners has DIN/DPIN, the form can now be signed by providing PAN details of the Designated Partners.
  • If the name is not applied and approved through RUN-LLP, the user can apply the name through FiLLiP but the only name is allowed to apply in form FiLLiP.
  • DPIN/DIN/DSC is now no more required for the name reservation.
  • The same user login id which was used for reservation of name through RUN-LLP has to be used for submitting and uploading FiLLiP.

It is advisable to get familiar with the Limited Liability Partnership Rules 2009 along with the amendments made for the incorporation of LLP before applying for the LLP registration so it is always better to take professional assistance for the registration of an LLP.

Assimilate the workforce with less liability and churn out success

Indian economy is flourishing. You want to become part of it. You want to pour your input in a little way. You are thinking of a business but the capital is pulling you back. The ideas are getting into the hole. You are applying for a loan but the approval has no time limit. So, the business got stuck in between. You are your own storyteller. The obstacles cannot pull you back. Start a business with LLP method. Apply the procedure and get permission for doing business on LLP registration. Your liability will be divided between partners and you can get your benefits as share. You are able to do business with less risk and more gain.

  • In India, you are applying for LLP registration. The LLP registration has come into the act on 2008. It acts by the Government of India. You are protected from personal liability, on the basis of their capital contribution. You are able to register your interest and get permission. The method of LLP registration will be like

PROCEDURE TO REGISTER A LLP (EFFECTIVE AS ON 2ND OCT, 2018)

  1. Check the availability of the name of the LLP after checking the availability of the name file the application for the name approval with RUN-LLP(Reserve Unique Name-Limited Liability Partnership) replacing the FORM-1. This is new changes made by the MCA effective as on 2nd October 2018. For now, we can apply only two names to one RUN-LLP application.
  2. The second step is to obtain DPIN/DIN and after obtaining the identification number the partners can incorporate the LLP but for this, you need to file different forms but now all the procedure get to sum up into one form FiLLiP(Form for Incorporation of LLP) replacing the Form-2. Now in this one form, three steps can be taken into one, i.e;
  3. Name Reservation
  4. Allotment of Designated Partner Identification Number (DPIN/DIN)
  5. Incorporation of LLP
  6. You will need the digital signature from all-inclusive partners.
  7. You are permitted to collect the certificate of incorporation from the registrar of companies.
  8. Now you have to open a bank account after filing the LLP agreement

 

  • Now if you are scratching your head and getting lots of unwanted suggestions from the people or from your business partners, then it is time for you to make them understand the reasons behind your chosen LLP.

    Benefits of LLP Registration will be like

  • The numbers of LLPs have no limits. You can ask or gather as many members as possible so the risk factors went down
  • The LLP management is elastic in nature. You can easily maintain the internal method of LLP. Organizing the internal management of the company is quite tough.
  • You are free to collect and assimilate the funds from various places. The amount or the will of the partners have no rigidity. You can utilize the funds intelligently at any time during the business run. The main thing you have to take care of is the LLP act of 2008
  • To run the company you have to pay the Dividend Distribution Tax. LLP is not associated with this DDT.
  • The chain of work or management likes to apply the LLP in their workforce. There are many professionals who generally works with many layers of working professionals.LLP helps them to unite and divide the work pressure while the liability will be the same but less. The Doctors, engineers, CA, CS, Advocates, engineers are eager to register as LLP Company Registration.

The virtual business houses are more prone to get LLP from Ministry of Corporate registration. They are in different places and operating the business.LLP will solve the problem, but the business acumen in you will be verified.

You are willing to start a business. The capital, time, liabilities and the ideas are flowing in the market. The tapping method will take you to the satisfying position. The business houses are cutting down the workforce for one particular work and trying to recruit as many multi-tasker as possible for the large perspective of business. You are your own management if LLP is there to handle the internal matters.LLP is online CA for your company.

How LLP Registration Online is Making Easier to Startups.

How LLP Registration Online is Making Easier to Startups:

LLP implies Limited peril alliance and is addressed by Limited Liability Partnership Act 2008. Obliged Liability affiliation gives the upside of restricted danger to its proprietors and in the meantime requires unimportant upkeep. The authorities of a private kept affiliation have constrained risk to banks. If there should be an occasion of default, banks / charter can essentially offer affiliation’s central focuses and not particular resources of chairmen. A Limited Liability Partnership (LLP) is an association in which a few or all accomplices (contingent upon the locale) have limited liabilities. It along these lines displays components of associations and companies

LLP is a business design that consolidates the adaptability of an organization and the benefits of limited obligation of an organization at a low consistence cost.

LLP has its own favorable position when contrasted with the customary organization and the Private Limited, as it picks the best of these two structures in a single strong suitable bundle.

It handles different difficulties that business person faces when utilizing a conventional association structure.

The primary focal point of any Startup is to keep the repeating cost at an absolute minimum but then run the organization with no hiccups, as one of the real expenses are identified with bookkeeping and consistency when contrasted with Pvt Ltd.

Why LLP?

For quite a while, a need has been felt to accommodate a business arrange that would join the adaptability of an organization and the upsides of constrained risk of an organization at a low consistence cost. The Limited Liability Partnership arrange is an option corporate business vehicle that gives the advantages of limited risk of an organization however permits its individuals the adaptability of sorting out their inside administration based on a commonly arrived understanding.

Advantages for LLP Registration

  1. No base capital commitment required

LLP could be framed with no base capital commitment rather than the Private Limited organizations’ necessity of Rs. 1 Lac. Indeed, even the commitments could be made in portions which makes the little business visionaries/new companies profit these advantages and produce ahead.

  1. Seclude legal component (Limited Liability)

The obligation of each accomplice is constrained to the degree of his/her commitment/share rather than the sole proprietorship or the customary organization firm where the individual resources of the proprietor or accomplices could be in danger in case of a disappointment of the business. Subsequently this mode encourages the accomplices to be free from individual liabilities or getting to be bankrupt (with the exception of in instances of misrepresentation by any accomplice). Its very protected contrasted with the boundless risk which offered by organization firm.

  1. Low Cost:

The cost of enrolling LLP is low when contrasted with the cost of fusing a private limited or an open limited organization.

  1. Separate Legal Entity

LLP has its different presence from its accomplices. LLP can sue and be sued in its own reality. Because of its status , the section and exit of the accomplices don’t influence the LLP. As it consolidates different stakeholders(i.e. Providers, Customers and so on.), it offers the adaptability while managing and marking legitimate contracts and in numerous different things.

  1. Tax Benefits

The Profit will be exhausted to the LLP independently and not to the Partners which dodges twofold tax collection issues.

Process for Limited Liability Partnership Registration

If you have business idea get it registered  with Limited Liability. LLP registration process is very simple with registerexpers.com but it needs careful drafting of the incorporation points.  The LLP registration procedure is as follows:

  1. Complete your registration Form
  2. Prepare for DSC and DIN
  3. Name Approval
  4. Apply for digital signature certificate
  5. Submit documents
  6. Wait for final approval.

Required Documents for LLP Registration –

  1. ID Proof
  2. Address Proof
  3. Passport size photo
  4. Registered office

Done with LLP  Registration!!! Start Earning Money !!!

Congrats. Your LLP is currently effectively up and running. There are no more enrollment prerequisites or methodology required under the LLP Act.