Limited Liable Partnership is an extremely flexible form of Business registration best suited for small, medium & family-owned businesses. Apart from higher flexibility, there are other multiple benefits too. You can read all about LLP registration on our other blog.
Here, I will be explaining the whole registration process and the compliances of an LLP. So without wasting any more time, let’s get going.
Steps involved in the registration of an LLP
Obtaining the DSC
The whole LLP registration process is online, and hence all the documents have to be submitted online. To verify these documents online, A Digital Signature Certificate (DSC) has to be obtained.
So if you are planning to register your LLP, the first step is to get a DSC for each & every Partner from any government-approved certification agency. DSCs are of two types. For LLP registration, you can choose either Class 2 DSC or Class 3 DSC.
Obtaining the DIN
Director Identification number or simply, DIN is a unique id given to every Director of any existing or proposed company. So for registering an LLP, you will have to apply for a DIN. You can apply for a DIN by filling From-3, signed by the any of the following, belonging to the company for which the Director is being appointed for, along with the necessary documents.
- Company Secretary
- Managing Director
- Chief Executive Officer
- Chief Financial Officer
Unique Name Reservation
Every proposed LLP should have a unique name. An application for reserving that unique name shall be made in the form of LLP-RUN( Limited Liabilities Partnership-Reserve Unique Name). But before you apply for the unique name registration, we would recommend using the free name search facility offered by the Ministry of Corporate Affair’s (MCA) portal. Once you enter the proposed name, the portal will show you all the names that closely resemble your name,
This helps you alter your name if there is too much similarity as the application for the already registered name. The reason is, if the Registrar finds that the name selected by your is same or similar to an already registered LLP or any other Company, it will be rejected. To avoid this rejection and delay caused by it, it’s better to check the name first.
Once this application is made, it will be processed by the Central Registration Centre under Non-STP. Along with the necessary documents and LLP-RUN form, you will have to pay the name registration process fees.
If the Registrar rejects your choice’s company name, you have 15 days to re-submit the form after rectification from the communication date.
Incorporation of LLP
Once the name is registered, you will have to apply for the LLP registration with the Registrar of the area in which the registered office of the proposed Business is located. A form FiLLip ( Form of incorporation of Limited Liability Partnership) has to be filled and submitted to file the application. The fees shall also be paid with this application as per the Annexure ‘A’.
Filing Limited Liability Partnership Agreement
Once the LLP is incorporated after getting Approval from the Registrar, an LLP agreement has to be filed via Form 3 on the Ministry of Corporate Affairs portal. This form should be filed within 30 days of incorporation of the proposed LLP.
Documents necessary for the registration of an LLP
- Any ID proof along with the PAN card of every Partner
- Residential Proof of each Partner
- Address proof of Each Partner (Aadhaar Card/Voter ID/ License)
- If one or more foreign national or NRIs are involved, their Passport is also required.
- Address Proof of the registered office
- Rent Agreement if the place is rented or Proof of ownership of the property is owned
- DSCs for each Partner
- DIN for directors.
Annual Compliances of an LLP
Although the legal compliances for an LLP firm are minimal, few compliances have to be maintained. Let’s take a look at these annual compliances for an LLP
- Income Tax Return.
Every LLP has to file an Income Tax Return or an ITR at the end of every financial year. This ITR should be filed through FORM ITR 5. It’s vital to note here that for filing an ITR of an LLP, a Digital Signature Certificate (DSC) of a Designated Partner is mandatory.
- Ministry of Corporate Affairs Annual Returns
An LLP has to file two MCA annual returns.
Form 11 containing the detailed information about the Total Number of Partners, their contribution in the LLP, details of Body corporate and other information has to be filed on or before 30th May of every year for the previous financial year. i.e. Form 11 for the FY 2019-2020 has to be filed on or before 30th May 2020.
Similarly, Form 8 has to be filed within 30 days after the completion of 6 months, starting from the end of each financial year.
- Other Returns
Apart from these annual compliances, an LLP has to file regular returns like GST returns, TDS returns and ITRs as per the Government norms.
How can we help?
Keeping compliant with the Government norms is vital for any LLP as a lot of Paperwork is included in the process. We recommend outsourcing the LLP registration and compliance process to a team of experts.
At Probal, we have an army of seasoned experts who can help manage your LLP registration and compliance process. We will do all the hard work for you while you focus on your core business. We will manage all the complexities of legal work so you can relax and have peace of mind.
For any further detail, feel free to reach us any time.
Probal Consulting Group is a leading Taxation, Accounting, and Compliance firm that helps individuals, MSMEs, and other businesses manage their accounting, taxation regulatory compliance affordably.